Inside Licensing News and Notes, Aug. 17, 2018
Gordon Brothers Brands Takes 5.4% Stake in Cherokee
Gordon Brothers Brands has a 5.4% stake (795,311 shares) in Cherokee Global Brands as part of the joint venture that accompanied a new credit facility, according to a Cherokee filing with the SEC. Gordon Brothers Brands, which is the licensing arm of Gordon Brothers, is working with Cherokee to expand the company’s roster of licensees. Gordon Brothers Finance Co. replaced Cerberus Business Finance as the senior lender earlier this month on Cherokee’s new $40 million credit facility. One of the junior lenders on the deal, Cove Street Capital, bought 28% of Cherokee (4.3 million shares), according to the separate filing.
Contacts:
Cherokee Global Brands, Henry Stupp, CEO, 818-908-9868 x200
Cove Street Capital, Jeffrey Bronchick, Principal, 424-221-5897
Gordon Brothers Brands, Ramez Toubassy, Pres., 310-243-6766, rtoubassy@gordonbrothers.com
Rovio Posts Q2 Operating Profit Decline, Signs First Angry Birds 2 Movie Licensees
Rovio Entertainment’s brand licensing operating profit fell to €1 million in Q2 ended June 30 from €5.8 million a year earlier as revenue tumbled 73% to €6.5 million due largely to a decline in content licensing tied to The Angry Birds Movie.
Consumer Products-related licensing revenue slipped slightly to €2.4 million, but was up from €1.7 million in Q1. The declines in brand licensing operating profit and revenue came as Rovio gears up a new program for the Angry Birds 2 movie that is slated to be released Sept. 20, 2019. Perfetti van Melle (candy), Crocs (footwear) and Pez International (candy dispensers) are among the first licensees for the new program.
Overall, Rovio’s operating profit decreased to €6 million from €16 million a year earlier as revenue declined 16.8% to €71.8 million. Rovio’s gaming revenue jumped 11.4% to €68.3 million as revenue from the “Angry Birds 2” title jumped 42.8% to €30 million. The gains in “Angry Birds 2” and “Angry Birds Match” (more than doubled to €7 million) were offset by declines in “Angry Birds Blast” (45% to €6 million) and “Angry Birds Pop” (33.3% to €4 million). The number of monthly active users for Angry Birds games increased 16.9% to 581 million, while the monthly average revenue per user nudged up to €34.
Rovio has 10 new games under development, one of which – “Angry Birds Blast Island” is in a beta test in Taiwan, Macao and Hong Kong. Rovio also recently joined Magic Leap’s early access partner program that is focused on augmented reality (AR) technology.
Contact:
Rovio Entertainment, Rene Lindell, CFO, +358 207 888 3000, rene.lindell@rovio.com
Beekman 1802 Merges Beauty Business with Licensee
Beekman 1802 merged its bath and beauty business with licensee STA Elements as it continues to pull back from a once broad licensing program.
The combination gives Beekman 1802 new offices at STA Elements’ U.S. headquarters in Orlando, FL, while maintaining those in Schenectady, NY. The Beekman 1802 line, which was displayed at the NYNow craft and gift show in New York earlier this week, includes honeyed grapefruit hand and body cream, goat milk lip balm, apricot and honey tea soap and honey and orange blossom body wash. STA Elements develops, manufactures and distributes beauty, skincare, bath and body products under the Beekman 1802 label as well as the Beaute Essentille and Doxen & Hue brands.
“The merger has aligned the brand both financially and from a mission-oriented or strategic perspective,” Beekman’s Tomei Thomas tells us.
Beekman 1802, which was founded 10 years ago by Josh Kilmer-Purcell and former Martha Stewart Living executive Brent Ridge, previously had licensing programs stretching across food and beverage, footwear, housewares, home décor, bedding and furniture. Beekman currently has two licensees: Marietta Hospitality (hotel products such as lotions, shampoos and conditioners) and Target, which uses the Farmhouse Beekman 1802 brand for furniture, lighting, bedding, rugs and other products.
The program peaked in 2015 with a Beekman 1802 Farm Pantry program at Target that the brand end-cap displays for a 48-SKU assortment of salad dressing, cooking sauces, baking mixes and other products. Beekman has since parted with licensing agent Brand Central.
“We’re open to exploring licensing opportunities but any licensing opportunity we look at has to be high quality product and help create jobs” in the U.S., says Thomas.
Contact:
Beekman 1802, Tomei Thomas, VP, 407-361-4444, tomei@beekman1802.com
Tencent Turns Profit on Epic Games Investment
China’s Tencent Holdings turned a RMB1.5 million profit in Q2 ended June 30 from investments driven largely by its stake in Fortnite developer Epic Games, Tencent CFO John Lo told analysts. The profit reversed a RMB319 million loss in Q1 as Fortnite, which launched last year, expanded the number of registered users to 125 million. Epic Games and agent IMG have struck a series of licensing deals for the brand in apparel (Mad Engine), toys (Funko, McFarland Toys) and others products. In China, Fortnite has so far recorded 10 million pre-registrations for a PC version that’s due later this year, Lo said. Tencent also publishes a mobile version of Bluehole Studios’ PlayerUnknown’s Battleground (PUBG), which features a battle royal format similar to Fortnite. It has posted RMB20 million in monthly revenue on the strength of sales of season passes, Tencent said. The mobile game has registered 15 million daily active users outside China since its launch in March, Lo said. Overall, Tencent’s Q2 profit decreased 2% to RMB17.87 billion, the company’s first quarterly decline since 2005, despite revenue rising 30% to RMB73.7 billion.
Contact:
Tencent, John Lo, CFO, +86 755 8601 3388.
Miss Universe Shifting Licensing to Outside Agent
The Miss Universe Organization (MUO) hired Endemol Shine North America as it shifts licensing to an outside agent in North America. The move comes three years after Donald Trump sold MUO to WME-IMG. In addition to Miss Universe, Endemol Shine will seek licensing pacts for the Miss USA and Miss Teen USA brands. Endemol Shine will seek deals in digital and consumer products, promotions and sponsorships. The Miss Universe pageant debuted in 1952 and Trump bought it from ITT Corp. in 1996.
Contacts:
Endemol Shine North America, Tamaya Petteway, SVP Integrations and Partnerships, 747-529-8000, tamaya.petteway@endemolshine.us
Miss Universe Organization, Paula Shugart, Pres. 212-373-4999
Cannabis Superstore to Open in Las Vegas
Planet 13 will open a 40,000-sq.-ft. cannabis superstore in November in Las Vegas as it banks on a growing market in Nevada, where recreational marijuana was legalized last year. The facility will feature entertainment and a 16,500-sq.-ft. dispensary with 45-50 registers. Planet 13, which will be located across Las Vegas Boulevard from The Wynn Las Vegas, will feature 15-foot tall acrylic/metal lotus flowers and a lobby with sensory-activated flooring. The store will carry Planet 13 brand cannabis, cannabis oils, edibles, vape and other products.
Contact:
Planet 13, David Ferris, Marketing Dir., 702-206-1313
