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article imageTilray signs deal to market and distribute consumer pot products

By Karen Graham     Jan 15, 2019 in World
Tilray has agreed to pay Authentic Brands Group (ABG) $100 million initially to create and distribute consumer cannabis products as the retailer's preferred supplier, the companies announced Tuesday.
B.C.-based cannabis giant Tilray could pay up to $250 million in cash and stock, depending on the success of the venture, according to New Cannabis Ventures. The deal also gives Tilray access to a larger consumer base and a massive global distribution network.
"They own over 50 iconic brands they have the products in over 100,000 points of sale, over 4,500 free standing and shop and shops around the world," Tilray CEO Brendan Kennedy said Tuesday in an interview on CNBC's "Squawk Box."
"If you can imagine a Nine West foot cream where we put samples in over a million pairs of shoes that are sold by them every year, it introduces new consumers to cannabis-based products, CBD primarily."
Nine West at CF Promenade  a large regional shopping centre located in the area of Thornhill  Ontari...
Nine West at CF Promenade, a large regional shopping centre located in the area of Thornhill, Ontario, Canada.
Raysonho @ Open Grid Scheduler (CC0 1.0)
ABG's micro-influencing network
ABG’s portfolio generates approximately $9 billion in retail sales annually. The company reaches nearly 250 million social media followers across key digital platforms.
Bringing influencer marketing in-house is a relatively new trend. In February, ABG implemented its own in-house influencer platform called Winston. Winston is managed by AGB’s nine-person internal digital innovation team and operates like most platforms prevalent at influencer agencies today. Winston is built on Instagram’s application programming interface.
CBD products are becoming the "big thing"
The two companies will immediately focus on cannabis products in Canada and CBD oils in the U.S. In the deal, Tilray gets a guaranteed minimum payment of up to $10 million annually for 10 years and the right to receive up to 49 percent of the net revenue generated from the new cannabis products.
However, after President Donald Trump signed the Farm Bill recently, legalized hemp-based CBD to be grown in the U.S., Kennedy said the signing of the bill prompted them to "move quickly to get products into the market."
"We see the extraordinary potential for cannabis in the fast-growing health and wellness category – particularly for CBD products in the United States and around the world – and are excited about this long-term partnership," Authentic Brands Executive Vice Chairman Daniel Dienst said in a statement.
More about tilray, Authentic Brands Group, consumer products, cannabis products, CBD oils
 
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