Greenlane Holdings, Inc. (NASDAQ:GNLN) has entered into a distribution agreement with Universal Distribution LATAM LLC to distribute its proprietary portfolio of house brands in Latin America.
Under the terms of the agreement, Greenlane has granted Universal Distribution the exclusive right to promote, market, distribute and sell Greenlane Brands to retailers for resale in Chile, Uruguay and Argentina, as well as non-exclusive rights to promote, market, distribute and sell the Greenlane Brands via all wholesale channels in other territories in South America, Central America, and Mexico.
As part of the deal, Universal Distribution also has been granted the non-exclusive right to sell certain third-party brand products.
Universal Distribution has committed to the following sales targets within the first three years of the agreement to maintain exclusivity, consisting of both Greenlane Brands and select high-velocity third-party brand products:
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Year 1: at least $1.5 million.
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Year 2: at least $1.9 million.
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Year 3: at least $2.4 million.
"This partnership represents a major milestone in the company's history, as we expand into the promising Latin America market. Unlike plant-touching operators, Greenlane is not subject to the same global trade constraints and can ship its products worldwide in an asset-light manner, enabling us to scale faster and wider, and ultimately build our brands in these emerging markets ahead of legalization," stated Nick Kovacevich, CEO of Greenlane. "By relying on the resources and expertise of Universal Distribution, who intimately knows and understands the local markets, we can significantly expand the reach of our products without having to invest considerable capital to build our own operations in these markets. Overall, this partnership is another great way to execute our strategy of scaling our Greenlane Brands, and sets the stage for future deals in Latin America and beyond, as we look to expand our business globally in a profitable manner."
Guillermo Martin, president of Universal Distribution added: "We are thrilled to partner with Greenlane to bring its highly sought-after portfolio of brands to the burgeoning Latin America market. Leveraging our local knowledge, deep client relationships, and vast distribution network, we can deliver these premium products to more consumers than ever before, creating incremental value for our clients in the process. The ancillary cannabis industry is rapidly changing, and with this one-of-a-kind partnership, we believe we are pushing the boundaries of what's possible for cannabis accessories in the multi-billion-dollar Latin America market."
Photo: Courtesy of Greenlane Holdings, Inc.
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