Cellmid Limited (ASX:CDY) has signed, via its wholly-owned US subsidiary Advangen LLC, an agreement with Tru Beauty Concepts Inc for the exclusive distribution of its évolis® Professional anti-ageing hair care products in salons in the northeast of the US.
Tru Beauty Concepts is a distributor to the professional beauty salon and spa industry, servicing 40,000 salons in 11 states and has a partnership with wholesale ecommerce hub, Salon Interactive.
This exclusive distribution deal is expected to deliver significant revenue growth to the US business from the second half of the 2021 financial year, following 51% growth in FY2020.
Cellmid chief executive officer Maria Halasz said: “In our view, the partnership with Tru Beauty is a game-changer for the évolis® Professional brand in the US.
“Securing salon distribution will add scale to our US expansion and growth ambitions for the brand.”
The agreement commences on August 1, 2020, with an initial term of five years.
Shares in the company have been as much as 14% higher to 14.2 cents intra-day.
Strong salon network
The Tru Beauty exclusive territory comprises Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, Washington DC, and West Virginia.
In addition to their 42 field staff, Tru Beauty operates two state-of-the-art facilities with live streaming capabilities to improve brand education to professionals.
Tru Beauty also has a partnership with wholesale ecommerce hub, Salon Interactive.
The Salon Interactive portal which hosts individual salon websites, making premium hair care products available to clients of participating salons, even if they are not physically open due to the COVID-19 pandemic.
From early August, évolis® Professional products will become available to all participating salons and their clients on the Salon Interactive platform.
Revenue growth expected
In FY2020, Cellmid experienced a 51% increase in consumer health sales in the US to $626,000 and expects the agreement to deliver significant revenue growth to the US business during the second half of FY2021.
This is expected through access to thousands of salons in Tru Beauty’s network, inclusion in their education classes and becoming part of the premium salon products offered through Salon Interactive.