Better Choice Company Agrees in Principle to Licensing Agreement in Asia for its Halo Elevate® Brand
Better Choice Company (NYSE: BTTR) has announced an agreement in principle with CZC Company for a 5.5% royalty on all Halo Elevate® brand sales in Asia. The agreement grants CZC the rights to market and sell up to 13 SKUs of Halo Elevate® formulas, which are new to the Asian market.
Under the terms, CZC will directly order and pay for products from Better Choice's U.S. manufacturer, with the royalty fee being payable upon shipment. The company's Chairman, Michael Young, emphasized Halo's global recognition in pet health and nutrition, indicating plans to explore additional licensing opportunities worldwide.
Better Choice Company (NYSE: BTTR) ha annunciato un accordo di principio con CZC Company per una royalty del 5,5% su tutte le vendite del marchio Halo Elevate® in Asia. L'accordo concede a CZC i diritti di commercializzare e vendere fino a 13 SKU delle formule Halo Elevate®, che sono nuove per il mercato asiatico.
Secondo i termini, CZC ordinerà e pagherà direttamente i prodotti dal produttore statunitense di Better Choice, con la royalty che sarà pagabile al momento della spedizione. Il Presidente dell'azienda, Michael Young, ha sottolineato il riconoscimento globale di Halo nella salute e nutrizione degli animali domestici, indicando piani per esplorare ulteriori opportunità di licenza a livello mondiale.
Better Choice Company (NYSE: BTTR) ha anunciado un acuerdo de principio con CZC Company para un royalty del 5.5% sobre todas las ventas de la marca Halo Elevate® en Asia. El acuerdo otorga a CZC los derechos para comercializar y vender hasta 13 SKU de las fórmulas Halo Elevate®, que son nuevas en el mercado asiático.
Según los términos, CZC ordenará y pagará directamente por los productos del fabricante estadounidense de Better Choice, con la tarifa de regalías pagadera al momento del envío. El presidente de la empresa, Michael Young, enfatizó el reconocimiento global de Halo en salud y nutrición de mascotas, indicando planes para explorar oportunidades adicionales de licencias en todo el mundo.
Better Choice Company (NYSE: BTTR)는 CZC Company와 아시아에서 Halo Elevate® 브랜드 판매에 대한 5.5% 로열티 계약을 체결했다고 발표했습니다. 이 계약은 CZC에게 아시아 시장에 처음으로 출시되는 Halo Elevate® 포뮬러의 13 SKUs를 마케팅하고 판매할 권리를 부여합니다.
계약 조건에 따라 CZC는 Better Choice의 미국 제조업체로부터 제품을 직접 주문하고 결제하며, 로열티 수수료는 배송 시 지불됩니다. 회사의 회장인 마이클 영은 반려동물 건강 및 영양 분야에서 Halo의 글로벌 인지도를 강조하며, 전 세계적으로 추가 라이센스 기회를 탐색할 계획을 언급했습니다.
Better Choice Company (NYSE: BTTR) a annoncé un accord de principe avec CZC Company pour une redevance de 5,5% sur toutes les ventes de la marque Halo Elevate® en Asie. Cet accord accorde à CZC les droits de commercialiser et de vendre jusqu'à 13 SKU des formules Halo Elevate®, qui sont nouvelles sur le marché asiatique.
Selon les termes, CZC commandera et paiera directement les produits auprès du fabricant américain de Better Choice, la redevance étant payable lors de l'expédition. Le président de l'entreprise, Michael Young, a souligné la reconnaissance mondiale de Halo dans le domaine de la santé et de la nutrition des animaux de compagnie, indiquant des projets pour explorer d'autres opportunités de licence à l'échelle mondiale.
Better Choice Company (NYSE: BTTR) hat eine Grundsatzvereinbarung mit der CZC Company über eine 5,5% Lizenzgebühr auf alle Verkäufe der Marke Halo Elevate® in Asien bekannt gegeben. Die Vereinbarung gewährt CZC das Recht, bis zu 13 SKUs von Halo Elevate® Formeln zu vermarkten und zu verkaufen, die neu auf dem asiatischen Markt sind.
Nach den Bedingungen wird CZC die Produkte direkt bei Better Choices US-Hersteller bestellen und bezahlen, wobei die Lizenzgebühr bei Versand fällig wird. Der Vorsitzende des Unternehmens, Michael Young, betonte die globale Anerkennung von Halo im Bereich der Tiergesundheit und -ernährung und kündigte Pläne an, zusätzliche Lizenzmöglichkeiten weltweit zu erkunden.
- New revenue stream through 5.5% royalty on Asian sales
- Expansion into Asian market with 13 new SKUs
- Zero operational costs as buyer handles ordering and payment directly with manufacturer
- Revenue to 5.5% royalty compared to full product margin
- Dependency on third-party manufacturer and distributor execution
Insights
This licensing agreement represents a strategically sound move that transforms Better Choice's business model in Asia from traditional distribution to an asset-light royalty structure. The 5.5% royalty on manufacturer cost creates a high-margin revenue stream without the typical working capital requirements of inventory management and logistics.
Several key aspects make this deal particularly noteworthy:
- The agreement leverages an existing partnership with CZC, reducing execution risk through established market understanding and relationships
- The introduction of 13 new Halo Elevate® SKUs suggests significant market expansion potential in the premium pet food segment
- The structure where CZC directly handles procurement and payment with U.S. manufacturers minimizes Better Choice's operational complexity and credit risk
The Asian pet food market presents substantial growth opportunities, particularly in the premium segment where Halo Elevate® is positioned. The region has experienced rapid pet humanization trends and increasing disposable income, driving demand for premium pet nutrition products.
While the 5.5% royalty rate appears modest at first glance, the arrangement's profitability potential becomes more apparent when considering:
- Zero inventory carrying costs
- Eliminated logistics and distribution expenses
- No accounts receivable risk
- Minimal ongoing operational costs
This licensing model could serve as a template for Better Choice's future international expansion, particularly in markets where direct operations would be capital-intensive or face regulatory hurdles. The focus on the Halo Elevate® brand specifically suggests a strategic emphasis on premium positioning in international markets.
Better Choice will receive a
TAMPA, Fla., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Better Choice Company, Inc. (NYSE American: BTTR) (“Better Choice” or the “Company”), a pet health and wellness company, is pleased to announce that it has agreed in principle to a
According to the Agreement:
- The Buyer will obtain the right to market and sell the up to 13 SKUs of Halo Elevate® formulas (the “Products”), which have not previously been sold in the Asian region;
- The Buyer will order, and pay for, the Products directly from Better Choice’s manufacturer in the United States; and
- The Buyer will pay to Better Choice a royalty fee of
5.5% of the cost of the Products payable upon the shipment of the Products from Better Choice’s U.S. manufacturer.
Michael Young, Chairman of Better Choice, commented, “Our Halo brand has become globally recognized for its commitment to pet health and nutrition for pet owners. Our well-established partner in this region is committed to marketing and distribution of Halo products. Our team will continue to explore further licensing agreement opportunities globally.”
About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo brand, which is focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit https://www.betterchoicecompany.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact:
Better Choice Company, Inc.
Kent Cunningham, CEO
Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com
FAQ
What is the royalty percentage Better Choice (BTTR) will receive from Asian sales of Halo Elevate?
How many Halo Elevate SKUs will be introduced to the Asian market under the BTTR agreement?
Who will handle the manufacturing and distribution of BTTR's Halo Elevate products in Asia?
When will Better Choice (BTTR) start receiving royalties from Asian Halo Elevate sales?
