Ms. Penny White reports
YIELD GROWTH ADDS 6 NEW COUNTRIES IN SOUTH AMERICA TO DISTRIBUTION NETWORK FOR ITS URBAN JUVE HEMP SKIN CARE LINE
On Nov. 21, 2019, The Yield Growth Corp. entered into an addendum agreement to add the territories of Costa Rica, El Salvador, Ecuador, Argentina, Panama and Peru to its existing distribution agreement with Organic Medical Growth OMG3 Inc. for the exclusive distribution of Urban Juve products in Colombia and Brazil for a term of five years.
OMG3 is in the process of distributing Urban Juve hemp-infused products in Colombia and other countries of Central and Latin America. The first products to be offered will be Urban Juve's face moisturizers and its signature anti-aging serum. The first purchase order for 3,500 units has been placed and will be delivered once the products are registered for sale in Colombia. Registration of these products in Colombia is expected to be completed in early 2020.
OMG3, through an exclusive 10-year distribution agreement, has access to more than 9,000 points-of-sale in Colombia (pharmacies and specialized stores). Through the same distribution partner, OMG3 can reach more than 44,000 retail locations in other countries in South America, including Brazil, Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth and OMG3 have now expanded their distribution agreement to cover all of these territories.
In addition to this channel, OMG has partnered with Latin America's on-demand delivery giant Rappi, as the first to have its cannabis products available on the platform across Colombia. Rappi was founded in Colombia in 2015 and has become the unicorn of the Latam start-up scene having just received $1-billion in venture capital financing from Softbank. Rappi is located in 55 cities across seven Latam countries including Brazil, Argentina, Chile, Colombia, Peru, Uruguay and Mexico, and plans to expand to 100 new cities by the end of 2019. OMG has signed an exclusive agency agreement with Ariadna, Latam's largest independent marketing communications group based in Colombia, with a regional team of over 700 specialists in 15 countries and delivering services to 22 countries in the Americas. With cannabis being such a new emerging industry, OMG will be utilizing Ariadna's skills to build its data technology, measure consumer behaviour and build a data centre that will prove valuable for the successful activation of OMG's products into the various markets and channels across Latam. Ariadna will build campaigns for OMG that will influence its brand reputation and brand equity in Latam. From traditional-digital media planning to search, affiliate marketing, content amplification, e-commerce and influencer products, OMG will immediately capture all of its data to build what is non-existent in Latam in the cannabis category today.
"We are very pleased to welcome Urban Juve to our distribution portfolio and exclusively distribute their products in South and Central America. In addition to creating in-house and co-branded hemp seed and cannabis-based product lines, our strategy is to bring major international brands to the market in the areas of cosmetics, therapeutic and pharmaceutical products," says Jorge Diaz, president and chief executive officer of OMG3. "We strongly believe that the Urban Juve products will be an excellent addition to the current retail offer, finding their way to customers across borders due to their natural formulas and benefits. Urban Juve products will be initially distributed in Colombia, and we look forward to working with their team on expanding the reach within our network throughout the Americas."
According to Goldstein Research, the Latin America cosmetics market reached a value of $31.98-billion (U.S.) in 2017 and is anticipated to grow at a compound annual growth rate of 4.49 per cent during the forecast period 2017 to 2025.
Urban Juve products are now fully registered for sale in the European Union and are for sale in retail stores in Canada and the United States. Agreements are in place to distribute Urban Juve in Canada, Greece, Cyprus, Romania, Bulgaria, Serbia, Colombia, Brazil and now also Costa Rica, Panama, Argentina, El Salvador, Ecuador and Peru. Yield Growth is currently in talks with distributors to add the United Kingdom, Germany and other European countries to the Urban Juve distribution network.
About The Yield Growth Corp.
Yield Growth is developing and selling hemp, marijuana and mushroom products in what the Global Wellness Institute reports is a $4.2-trillion global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well, and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M.A.C Cosmetics, Skechers and Aritzia. Its all natural hemp skin care brand, Urban Juve, has signed distribution agreements in Canada, Colombia, Brazil, Greece, Cyprus, Bulgaria, Romania and Serbia.
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