Apex Global Brands today revealed a multibrand partnership with Stem Holdings, the vertically integrated branded cannabis company, to produce CBD products through a licensing agreement.
Through the partnership, Apex, formerly called Cherokee Global Brands, will debut medically-directed CBD products in 2020 made with Stem Holdings’ medical division that launched in August. The products will be made for Apex subsidiaries Hi-Tec, the 45-year-old outdoor brand; Magnum, a military, workwear and service-industry footwear purveyor, and Everyday California, the La Jolla, Cali.-based lifestyle label.
“The selection process for a CBD partner was highly rigorous,” said Apex chief executive officer Henry Stupp. “We wanted to ensure that as we expanded into new types of licensing agreements that the values of the prospective CBD partner’s organization fit well with Apex’s own values and portfolio of brands. From the beginning of our discussions with Stem, the fit and benefits this partnership could offer our common consumers became more and more apparent. We cannot wait to share some incredible and innovative products with consumers early next year.”
Stupp told WWD that Apex consumers were “looking for products that complement their highly active lifestyles.” He did not elaborate on what products will be released, but said, “We are working on customized product ranges by brand. More information around this will follow early next year.”
A report from legal CBD and cannabis-focused research firm Brightfield Group predicts that the U.S. CBD market will reach $5 billion this year and $23.7 billion by 2023.
“We are proud to partner with Apex Global Brands to launch a unique line of CBD products,” said Stem Holdings ceo Adam Berk. “Our medical division is collaborating with Apex Global Brands’ team to launch well-positioned products that will deliver the benefits and values exemplified by the Hi-Tec, Magnum and Everyday California brands, while also creating new profit centers for their retailers across multiple channels. We are seeing strong enthusiasm from both teams and know that our combined experience will ensure that only the best-in-class CBD products go to market.”
Apex officially changed its name from Cherokee on June 27. The company, which owns and markets brands such as Tony Hawk, Liz Lange and Point Cove, among others, reported on Tuesday a decline in revenue to $5.6 million from $7.1 million, but anticipates adding $1.25 million to $2.50 million in full year revenue in fiscal 2021 due to license and distribution agreements for Hi-Tec, Magnum and Tony Hawk.