Lotto Sport Italia signed a licensing agreement with Brazilian company Filon Confecções Ltda which will allow Filon Confecções to manufacture and market Lotto branded products throughout Brazil until December 31, 2009, with a renewal option for a further 3 years.

Filon and Lotto have studied a product strategy which puts forward performance and sportswear collection articles characterized by typically Italian technology, design and taste. As well as including the Lotto international collection, the lines offered may include supplements of articles specially designed to meet Brazilian market needs. Distribution will be widespread both through the sport trade channel and more particularly with major penetration of specialized soccer stores with medium- to high-end target customers, and through Filon’s own stores. Geographical development is to be focused in the centre and south of the country in the initial phase, and will later be extended to the rest of the vast territory of Brazil.

The sales target is to achieve total sales of $US 20 million in three years (retail) and at the same time become the top Italian brand and the number three brand overall in the Brazilian soccer market.

Filon, which has a large headquarters in San Paolo, was established in 1986. From the very beginning it specialized in sports clothing for soccer, to the extent of transforming this into its core business. Brazil is the world’s fifth largest nation in population terms, with over 185 million inhabitants, and the largest market in South America. Considered the home of soccer, the country has one of world’s largest segments of professional and amateur players.

“Landing in Brazil is an important breakthrough for Lotto,” commented Andrea Tomat, President of Lotto Sport Italia. “The combination of our product expertise and our new partner’s coverage of the country’s territory plus its consolidated experience in soccer, will allow us to achieve significant results in a country which is the symbol of soccer. Great passion for this sport is part of Lotto’s DNA as well as of Brazil’s people – many of its greatest stars are linked to our brand today, with Cafu, Dida, Doni and Amauri standing out. I am sure that we will soon see the Lotto double diamond logo in prominence in the Brazilian league championship too.”