Apex Global Brands, the apparel licensing company in Sherman Oaks formerly named Cherokee, has partnered with a cannabis company in Florida to enter the CBD market.
Apex will debut several CBD products created by the medical research division of Stem Holdings Inc in Boca Raton. The agreement involves licensing agreements with three of Apex’s clothing brands: outdoor crossover brand Hi-Tec, military and workwear brand Magnum and beachy casual brand Everyday California.
The clothing and CBD products will be marketed and distributed together — customers who shop those brands at yet-to-be-determined partner retailers will also be able to buy the Stem CBD products.
“We know that (Apex and Stem) consumers have crossover lifestyles. There’s an overlap in who they are. For the three brands that we’re targeting, all those brands’ consumers are very active. The objective is to offer them a product that will help them unwind,” Nadine Iacocca, Apex’s vice president of global marketing, told the Business Journal.
She said the companies haven’t decided exactly what form the CBD products will take but are targeting two to five products for each brand. First product shipments are expected to take place in early 2020.
Iacocca said the move is part of Apex’s campaign to expand its brand ownership and marketing services beyond just apparel.
“We’re wider than just a fashion and footwear company. We are a lifestyle company. We wanted to make sure that we offer products that suit the entire lifestyle of our consumer base,” Iacocca said. “This is an emerging segment and we want to be on the forefront.”