- Crowd Media has executed an exclusive and binding Marketing Services Agreement with VITAL Innovations Ltd to market and sell VITAL’s brands and products into the European market (excl UK)
- The deal is of special interest to Crowd as VITAL’s target customer is almost always a millennial- one of Crowd’s primary focus
- In the last one year, CM8 had delivered returns of 40%
At the November 2019 AGM, global media and marketing company Crowd Media Holdings Limited’s (ASX:CM8) Chairman, Steven Schapera, had outlined the Company’s strategic vision, highlighting Crowd’s plan to sell exemplary products integral to the lives of European-based millennials on a Direct to Consumer model.
On 16 June 2020, the Company hit a milestone in this regard as it announced the execution of an exclusive and binding Marketing Services Agreement with VITAL Innovations Ltd, a London-based family-owned business whose leading brands are trusted and used globally every single day.
The market update garnered ample attention, evident from the Company’s stock performance for the day. CM8 was up by 14.2% and quoted $ 0.032 at 2:06 PM AEST, with over 2 million shares traded on the ASX.
Crowd’s Exclusive Social Commerce Agreement with VITAL Innovations
The two years agreement, starting 1 July 2020, was signed to enable Crowd to market and sell significant VITAL portfolio brands as well as products into the European market (apart from the UK). The Marketing Service Agreement (exclusive), can be regarded as an EU grounded influencer marketing, social media as well as social commerce partnership.
The partnership comprises promotion and sale on a Direct to Consumer (D2C) model for few VITAL’s brands into the European market along with development and execution of an inclusive digital marketing campaign.
Crowd has already recognised several VITAL significant products as well as market segments (particularly healthcare and consumer), which will be its focus area initially.
Acquainting with VITAL Innovations Limited
A powerful, family-owned company that has been in business for over 40 years, VITAL is a UK-domiciled business based and headquartered in London with subsidiary offices in North America, Germany, and Israel. It has built and launched several effective brands across sectors like consumer, water purification and healthcare. Its portfolio of brands comprises of Vital Baby, Super Safe and Vital Family.
Crowd – VITAL Agreement Specifics
Besides signing the exclusive agreement, VITAL has also agreed to subscribe for 5 million CM8 shares at 3.0 cents each, a minor premium to the market price. The equity participation raises $ 150k, which will be utilised by Crowd to rollout strategic marketing initiatives and eventually strengthen sales.
Crowd Media Holdings Limited VITAL Innovations Ltd
- Crowd will be the exclusive online marketer of Vital Products through social media, social influencer, and social commerce in Europe, excluding the UK.
- Crowd will have a nonexclusive and worldwide royalty free license and the right to use, create, perform, reproduce, display, transmit, modify, copy, and distribute any advertisement relating to Vital products and brand.
- Crowd will receive 100% of Net Sales, or as agreed on a product-by-product basis
- Revenue Share payments, payable on Net Sales generated for VITAL Products sold via Company’s marketing services and entire sales produced via several websites controlled by VITAL (irrespective of the occurrence of these sales during or post the term).
- Net Sales has been defined in the agreement.
- Crowd will be responsible for all agreed Sales and Marketing costs- influencer marketing, social media performance marketing, creative and design and any other digital marketing initiative in line with its current business.
Significance of VITAL Agreement for Crowd
First and foremost, the Agreement leverages the Company’s core strengths that are digital marketing, D2C digital commerce, social media, influencer marketing and social commerce. These strengths will drive web and mobile sales of VITAL products in Europe while empowering rollout of the accoladed brands into the EU markets.
Secondly, the collaboration marks a major milestone in the execution of Crowd’s strategic vision to sell exemplary products that are essential to the lives of Europe-based millennials (on a D2C model). Interestingly, the Company has profound experience in digital marketing to millennials across Europe (in 12 diverse languages!). Performance as well as influencer marketing strategies can additionally boost VITAL sales.
CEO Domenic Carosa believes, the Company can add value to the collaboration by taking advantage of its five years-enriched social media, social commerce and social influencer experience that will benefit both parties.
He further states-
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