Provides Green Growth Brands with access to DSW's massive footwear and accessories retail footprint
COLUMBUS, OH, Jan. 10, 2019 /CNW/ - Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) (GGB or the Company) today announced an agreement (the Agreement) with DSW Inc. (NYSE: DSW) (DSW) to sell hemp-derived cannabidiol (CBD) personal care products under the Seventh Sense Botanical Therapy brand at select DSW stores throughout the U.S.
The Agreement was received by Green Growth Brands yesterday, January 9, for 54,960 units and covers sales in 96 U.S.-based DSW stores. Seventh Sense brand offers high-quality CBD-infused products and affordable prices, including muscle balms, body lotions, body washes and foot creams. The Agreement follows a successful test phase conducted last autumn in which Green Growth Brands sold select Seventh Sense products in 10 DSW stores. During the first 10 weeks of the test period, 74.4% of product presented on shelves was sold, significantly exceeding expectations.
"DSW is the number one full line adult footwear specialty retailer in North America1," said Peter Horvath, CEO of Green Growth Brands. "They have revolutionized shopping for shoes and accessories and we are thrilled they chose to partner with our company, allowing us to introduce a new product category to their customers."
"The Agreement, and the deepening relationship with DSW, is the first step in our strategy to expand sales of personal care CBD products through external partnerships, in mall kiosks, and through a growing number of stores and online," added Horvath.
DSW is a leading branded footwear and accessories retailer that operates a portfolio of several concepts. Designer Shoe Warehouse, its primary concept, offers a wide selection of brand name and designer dress, casual, and athletic footwear and accessories, with 515 warehouses in 44 states, and an e-commerce site, dsw.com. Its Affiliated Business Group also operates 290 leased departments for other retailers in the United States. DSW is a co-investor in Town Shoes of Canada, which operates 188 retail locations under several banners, including Town Shoes, DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse.
The announcement of the Agreement comes on the heels of the passage of the 2018 Farm Bill, signed in to law by President Donald Trump, which provided needed clarity regarding hemp and its extracts, opening the door for retail of such products.
"We have seen recent shifts in consumer behavior accelerate changes in the retail industry," said Roger Rawlins, CEO of DSW Inc., "North America's widespread adoption of the use of CBD products is one of the best examples of these shifts, and we could not be more excited about our partnership with Green Growth Brands and the introduction of their products to our customers."
DSW Inc. is headquartered in Columbus, Ohio and in fiscal 2017, generated US$2.8 billion in net sales through its retail network comprising 10.5 million square feet of stores and approximately 12,000 associates. Accessories, including beauty and wellness products, is a growing category for DSW and will continue to be a component of its growth strategy.
About Green Growth Brands
Green Growth brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by Peter Horvath, the GGB team is full of retail and consumer packaged goods experts with decades of experience building successful brands. Join the movement at GreenGrowthBrands.com.
Cautionary Statements:
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend", "forecast" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical and recreational marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the marijuana industry in the United States, income tax and regulatory matters; the ability of the Company to implement its business strategies; competition; currency and interest rate fluctuations and other risks, including those factors described under the heading "Risks Factors" in the Company's Annual Information Form dated November 26, 2018 which is available on the Company's issuer profile on SEDAR.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
This announcement does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal.
The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.
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