Loading...
LTC 213-2017 MB Miami Beach Suncare UpdateM MAI BEACH OFFICE OF THE CITY MANAGER NO. 213-2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members of e City Co r'mission FROM: Jimmy L. Morales, City Manager DATE: April 24, 2017 SUBJECT: MB MIAMI BEACH SUNCARE UPDATE The purpose of this Letter to Commission is to provide you with an update on the MB Miami Beach Suncare licensing program. The City partnered with Destination Brands International and launched MB Miami Beach Suncare in March, 2014. Since then, they have worked diligently to continue growing the brand; locally, nationally, and internationally. Destination Brands began 2015 with an aggressive growth strategy, taking on a new direction after feedback from the first year. New direction included focusing on building a stronger local base and building international relationships. 2016 results of these new initiatives have proven successful. Some of the results include: • Expanded regional retail placement: o Exclusive sales agreement with Miami Beach concessionaires, The Boucher Brothers, various Miami Beach hotel gift shops, boutiques, spas, pools and in - room mini -bars — 100 properties in total with 5,500 combined hotel guest rooms. o Entered new retail channels including the convenience channel (Tom Thumb — Florida Keys) and specialty travel retail (Florida's Turnpike rest stops). • National Retail Placement: o Distribution in Florida, Alabama, Louisiana, Mississippi and Georgia in beach shops, resort boutiques and spas — 250 stores. o Sold at Target stores in South Florida and online — 5 stores. o Sold at Navarro stores (owned by CVS) in South Florida, including Miami Beach — 33 stores. • International Retail Placement: o Expanded distribution in Spain, Portugal and the Canary Islands — including major retailer El Corte Ing/es and Primor — 200 stores. o Program also launched in Italy — 150 Stores. o Entered into the Duty Free channel (James Richardson Duty Free, Israel) In 2016, the product line expanded to include MB Tanning Oil Spray with SPF 8, MB Faces Sunscreen Lotion, SPF 30 and MB Faces Sunscreen Lotion, SPF 50. The addition of these new products brings the total product assortment to 10 products and amounted to 8% of gross unit sales in the initial year. Financial reports from 2016 reported net sales of $560,462 - an increase of over 18% from the prior year. The City will receive a royalty payment in the amount of $38,127.73.