The deal includes exclusive category rights and covers this year‘s postseason plus three additional years. Charlotte‘s Web will also launch its own e-commerce, a sport line of CBD products that will be brandished by the MLB‘s familiar silhouetted-batter logo.
Furthermore, the company plans to operate a World Series sweepstakes promotion in addition to running electronic signs during the playoffs and World Series. Sources described the deal’s non-traditional structure, which included a rights fee and a revenue share. In accordance with the terms of the agreement, MLB will also get Toronto Stock Exchange-listed Charlotte’s Web Holdings shares.
When MLB formally permitted clubs to secure sponsorships from CBD businesses that have earned NSF certification for sport, a group that sets standards for items used by athletes, in June, it prepared the door for the arrangement.
According to a statement from the league, a “rigorous clearance procedure” led to the deal between MLB and Charlotte’s Web. Athletes and celebrities have also promoted CBD products. In 2018, investors and Hall of Fame NFL running back Terrell Davis collaborated to develop a sports beverage with CBD.
Coincidentally, earlier this month, Charlotte‘s Web Holdings also signed a distribution agreement with major liquor distributor Southern Glazer‘s Wine & Spirits. “Southern Glazer‘s large-scale distribution within food and beverage, specialty beer, wine and spirits retail, hospitality, and big box retail addresses consumer demand for wellness options in this category,“ Charlotte‘s Web CEO Jaques Tortoroli said in a statement.
Southern Glazer’s Wine & Spirits is the world’s dominant beverage alcohol and is proud to be a family-owned company. Its operations run across 44 U.S states, the District of Columbia and Canada. In 2021, the company was among the U.S Best Managed Companies by Deloitte Private and The Wall Street Journal, in addition to being one of the Top 100 Most Loved Workplaces, as named by Newsweek.
“This exciting relationship is another step in delivering on our promise to shift our model to key multi-state distributor relationships in new industry verticals,” continued Jacques Tortoroli.
The two agreements underpin the symbiotic relationship between alcohol and the sports industry and their role in providing entertainment for millions of Americans across the country. The MLB also serves as a unifying symbol attracting people from all walks of life to come together to cheer on their favorite teams at a time of great division. Adding all the nutrients that CBD brings to the table into this world will only serve to benefit all parties involved.
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