BASICNET S.p.A has executed a Master License Agreement with Back to Back, LLC of New York to distribute KAPPA and ROBE DI KAPPA trademark products in the U.S. The agreement will run for an initial period of 5 years with options to renew for two additional periods of 5 years each. The agreement further provides for minimum guaranteed sales of $100 million during the first 5 years through June 2009.
Back to Back, LLC owns FUBU,COOGI and DRUNKNMUNKY urban brands.
As part of the agreement, SAMSUNG AMERICA INC., a wholly owned subsidiary of SAMSUNG CORPORATION will extend the same operational support services to Back to Back, LLC for the KAPPA program as they have historically provided to FUBU which has enabled FUBUs worldwide revenues to grow to over $350m in only 8 years of operation.
The new partnership for the USA between BasicNet and Back to Back will solidify KAPPAs position in this key market and provide a strong base for long term growth via a strategy of both consolidating the brands position in the core US soccer market whilst extending distribution of both KAPPA and ROBE DI KAPPA products to the broader lifestyle and sportswear channel. This will include sales to the general sporting goods market, athletic footwear, sport specialty and department store channels.
Back to Back, LLC will also implement a targeted and strategic investment in marketing communications to grow and strengthen the Kappa and Robe di Kappaa trademarks in the USA. Activities to be pursued will include sports sponsorships, consumer advertising, product placement, and joint marketing promotions with key retailers.
As Master Licensee for the USA, Back to Back, LLC is also authorized to secure sub-license agreements for other Kappa and Robe di Kappa products with companies specialized in their respective product categories. This activity will generate additional royalty revenues to BasicNet as the companys business and brand position in the USA continues to grow.