Naturally Splendid (TSXV:NSP) announced that it has signed a Memorandum of Understanding appointing Korea Beauty & Healthcare Co., Ltd. as Master Distributor for the Naturally Splendid hemp food brands in South Korea.
As quoted in the press release:
Under the terms of the Master Agreement, Korea Beauty & Healthcare Co., Ltd. will earn the exclusive rights to market the Naturally Splendid hemp food brands, NATERA® and Chii®, via TV shopping channels, online shopping, offline shopping and traditional retail throughout South Korea. Additionally, Korea Beauty & Healthcare Co., Ltd. will strategically secure additional Korean distributors for maximum market coverage both demographically and geographically.
To retain the exclusive rights to the Naturally Splendid® hemp food brands, NATERA® and Chii®, Korea Beauty & Healthcare Co., Ltd. must achieve minimum hemp seed sales of 200 metric tonnes in the first year of the agreement, 300 metric tonnes in the second year of the agreement and 300 metric tonnes in the third year of the agreement. This represents gross sales estimated to be a minimum of $8,000,000 CDN over the term of the three-year agreement.
Naturally Splendid CEO, Craig Goodwin, stated:
Establishing a Master Distributor for South Korea is a significant leap forward for Naturally Splendid. We have now secured a strategic partner where our bulk hemp products as well as branded hemp food lines of Naturally Splendid will be coordinated throughout the South Korean market through Korea Beauty and Health Care Co., Ltd. on an exclusive basis and thus maintaining maximum control over our brands while reaching the largest audience. We are extremely pleased with this arrangement.