June 27, 2019
Green Growth Brands has landed another major wholesale deal ー this time with teen fashion retailer Abercrombie & Fitch. Following a successful pilot in May, Green Growth Brands announced on Thursday its CBD-infused lip balms, lotions, muscle balms, and sugar scrubs will be sold in more than 160 Abercrombie & Fitch ($ANF) stores nationwide.
"What's great about Abercrombie & Fitch is that it has really the sweet spot for our customer base. Alongside that sweet spot is a brand loyalty that is really unparalleled in the industry. The combination of that along with what a global customer Abercrombie & Fitch actually has, has been really great for a our business," Green Growth Brands' new Chief Marketing Officer Jann Parish told Cheddar on Thursday.
Parish stepped into the CMO role at Green Growth last week, bringing with her almost two decades in fashion retail experience. Most recently, she served in executive roles at Victoria's Secret ($LB), and Calvin Klein ($PVH).
The agreement marks Green Growth Brands' second major wholesale deal since the passage of the 2018 Farm Bill ー the first was a January agreement to sell its Seventh Sense-branded products in 96 DSW ($DBI) stores nationwide. The cannabis and CBD branding company, backed by retail royalty, the Schottenstein family, sells an array of infused skincare and beauty products under its Seventh Sense and Green Lily brands. In addition to its wholesale deals, it has also struck up agreements with two of the largest U.S. mall operators, Simon Property Group and Brookfield Properties, to operate free standing stores and kiosks in as many as 280 locations by year's end.
When Congress passed the Farm Bill at the close of 2018, it removed hemp from the purview of the Controlled Substances Act and effectively opened the floodgates for an unregulated hemp and hemp-derived cannabidiol (CBD) market. The Food and Drug Administration has yet to establish regulations for CBD, but has issued warnings against making unsubstantiated health claims about the compound and including it in food and beverages. Despite those warnings and local crackdowns, CBD has become the wellness trend of the moment and can be found in everything from water and coffee to supplements and beauty products.
Beauty and fashion retailers seem to have less at stake ー at least for now ー than those companies dealing in CBD-infused foods and supplements, but Parish said the company is careful to be mindful of existing rules and regulations.
"It is important to us that we maintain our standards and that we maintain points of distribution that are important and relevant to our customer. And recognizing that it is a broad market, we work closely with our partners to ensure that we are reaching the right customer and are doing so in the right manner," Parish said.