Cannapany on May 16, 2022 No Comments
An agreement with Universal Distribution gives the cannabis company a massive global footprint
Greenlane Holdings, Inc. has entered into a distribution deal with Universal Distribution LATAM LLC, according to a company press release. The arrangement gives Universal access to its exclusive portfolio of cannabis brands for distribution throughout Latin America.
According to the agreement, Greenlane granted Universal exclusive rights to market, distribute, promote and sell Greenlane Brands in Chile, Uruguay, and Argentina to all retailers. They also have non-exclusive rights for promotion, marketing, distribution, and sale of Greenlane Brands through any wholesale channel in South America, Central America and Mexico.
Universal was also granted non-exclusive rights to sell third-party products as part of the agreement. Universal has agreed to meet certain sales targets during the first three years of the agreement in order to keep its exclusivity. This agreement applies to both Greenlane Brands as well as select high-velocity products from third parties.
“This partnership is a significant milestone in our company’s history as we expand into Latin America. Greenlane’s CEO Nick Kovacevich stated that, unlike plant-touching companies, Greenlane does not have to deal with global trade restrictions and can ship its products internationally in an asset-light way. This allows us to scale faster, expand our reach, and build our brands in emerging markets before legalization.
Kovacevich added that Universal is a local market expert that can help the company expand its product reach without needing to invest significant capital. He called the partnership a great way for Greenlane to scale its Greenlane brands, and also sets the stage for future deals in Latin America and beyond.
Guillermo Martin, president of Universal Distribution, stated that Greenlane’s highly-respected brands will be available to the Latin American market. He asserts that Universal can bring these premium products to more people than ever before thanks to the company’s local knowledge, strong client relationships and extensive distribution network. This, he asserts, creates incremental value for its clients.
Martin added, “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.”
Congratulation!