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.