American Premium Water Corporation (OTC:HIPH) announced that its Gents subsidiary has entered into a joint venture with Zhangjiagang Advanced Company (ZAC) to market and sell Gents in China and other Asian markets.
American Premium Water Corporation (OTC:HIPH) was pleased to announce that Gents has agreed to a joint venture with Zhangjigang to market and sell the Gents brand line of products throughout mainland China and other countries in eastern Asia. HIPH is also exploring partnerships for LALPINA Hydrogen CBD distribution in the region as well.
Ryan Fishoff, CEO American Premium Water Corporation stated, “This is a significant step for the brand to expand internationally. Working together with ZATC, we have a partner that will help us expand our footprint internationally and establish a presence in the world’s largest market. It also establishes a base to setup distribution in other major markets in the area, including Japan and Korea.”
Fred Su, Principal of ZAC spoke of the partnership “I am really excited, and looking forward to our new partnership with the Gents premium brand and introducing them to the Chinese market. The Chinese population loves premium American brands, and I think Gents has the potential to capture a large part of the market that continues to grow rapidly. We will have special collections created exclusively for the Asian markets which will further establish the brand in our country.”
The company also recently announced that its Gents subsidiary posted revenue of $169,313 in the fourth quarter of 2017, exceeding the 600-700% guidance provided a week earlier. The Gents results will propel the Company to over a 400% year over year increase in top-line revenue.
The New York-based Gents is a producer of luxury hats and other fine accessories and apparel.. Their line is carried in over 200 retail outlets internationally, including Bloomingdale’s (NYSE:M), Nordstrom (NYSE:JWN), and Saks Fifth Avenue (TSE:HBC).
Columbia Sportswear Co. (NYSE: COLM) announced last month that it would acquire the remaining portion of a similarly named Shanghai joint venture.
Columbia Sportswear Commercial Co. manages the Oregon outfit’s business in China. Currently, the local company owns 60 percent of the venture, and Swire Resources Ltd. owns the additional 40 percent.
The acquisition represents Columbia’s further expansion and investment in the growing Chinese market. Columbia and Swire have shared profits and losses based on their 60/40 ownership stakes in the venture. Columbia’s purchase of the additional 40 percent of the company will allow it to take the full share of profits from its business in China.
The venture generated $168 million in total sales in 2017, with sales on pace to achieve single-digit growth this year. Since the venture began operations in 2014, it has opened 86 retail store locations and sells through Columbia brand e-commerce websites in China. It also has distribution relationships with 50 wholesale dealers that operate around 750 retail locations.
“We are very pleased with the performance of our joint venture since 2014,” said Columbia CEO Tim Boyle in a release. “We have positioned the Columbia brand for long-term sustained growth in the crucial Chinese market. The acquisition is consistent with our strategy to accelerate investment as a brand-led, consumer-first business in the areas of highest growth potential for our existing brands.”