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TAG-BasicNet: a perfect marriage of product & platform
May '09
Total Apparel Group Inc (TAG) announced that it has been granted the U.S. and Canadian Master Licensing rights for the internationally popular Kappa and Robe Di Kappa brands in a multi-year agreement with the brands' parent company, Turin, Italy-based BasicNet Group, S.p.A. The agreement includes men's, women's and children's footwear, apparel, accessories and related sports equipment.

"The execution of this Master Licensing agreement represents the second globally significant agreement signed by the company within just a matter of months, and it offers the perfect marriage of product and platform,” stated TAG CEO Janon Costley. “This agreement is proof positive that we are on track to meet the goals and objectives that we established as we began our re-structuring process nine months ago. The Kappa brand has experienced past success in the U.S. and Canada, though it has not yet achieved the iconic status it enjoys in the rest of the world.

We strongly believe that the brand has not scratched the surface of its potential in North America. Even so, TAG immediately assumes a current annual sales volume of roughly $3.0 million dollars, (mostly from the Canadian market, with the U.S. a yet-untapped opportunity). The company is confident that the current sales figures can be increased substantially with a slight repositioning of the Kappa brand in the U.S. and the introduction of the Robe Di Kappa brand in both markets.”

Continued Mr. Costley, “Globally, the two brands are established consumer market forces. In the U.S. and Canada, both brands stand to potentially benefit from our unique industry experience and marketing platform, as we will seek to leverage the existing distribution network forged through our role as the official master distributor of FIFA and FIFA World Cup licensed apparel and accessories in the U.S.”

To fully execute its overall objectives the Company has established Kappa North America, a wholly-owned subsidiary, to manage the Kappa and Robe Di Kappa brands. In addition TAG has developed a strategic alliance with the current Toronto-based Canadian distributor, which will allow TAG to have a greater presence on the ground in the Canadian market for its various properties.

“The BasicNet Group saw in TAG the partner best positioned to make their brands successful in the U.S. and Canada, and we are honored to introduce these coveted lines of apparel, accessories and equipment to the world's most influential consumer base,” concluded Mr. Costley.

"The partnership with the TAG for U.S. and Canada markets represents an additional fundamental goal reached by the BasicNet Group in its strategy to strengthen the Kappa and Robe Di Kappa brands worldwide," stated Mr. Franco Spalla, CEO of BasicNet Group.

"We are proud to cooperate with a well-established company that can perfectly combine the exposure of its existing distribution agreements with the current international visibility of the Kappa sport brand, as well as optimize the experience of its managers in the lifestyle and leisure apparel field to introduce the Robe Di Kappa brand to American and Canadian customers,” confirmed Mr. Spalla.

Total Apparel Group Inc

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