Charlotte’s Web Signs First CBD Deal With MLB
Credit: Charlotte’s Web
The first company to score a CBD sponsorship with Major League Baseball is Charlotte’s Web Holdings Inc. as distribution deals with Gopuff and Southern Glazers widen its playing field.
Charlotte’s Web becomes the first CBD company that will be allowed to use the moniker “Official CBD of MLB.” The sports organization said in June said it would allow teams to enter sponsorships with CBD marketers.
Describing its relationship with MLB as a “multiyear, strategic partnership,” Charlotte’s Web will issue 6,119,121 shares of its common stock to the sports organization—worth an estimated $4.4 million, according to media reports.
In addition, the deal requires the company to make payments to MLB through Dec. 31, 2025.
According to a Securities and Exchange Commission filing, Charlotte’s Web will pay an “aggregate rights fee of $30.5 million and a 10 percent royalty on the company’s gross revenue from MLB-branded products of the company sold after prior sales of all such branded products exceed $18.0 million.”
Bottles of Charlotte’s Web’s new Sport Daily Edge line of CBD-infused gummies, oral sprays and topicals will carry MLB’s silhouetted batter logo.
“Charlotte’s Web will have a premiere brand presence at MLB’s Jewel Events, including All-Star Week, Postseason and the World Series” through marketing, media and ballpark activations that connect to the league’s fan base of over 180 million Americans,” the company said in a news release.
Also this month, Charlotte’s Web signed a distribution deal with liquor distributor Southern Glazer’s Wine & Spirits, which operates in 44 U.S. states, Washington D.C. and Canada.
That followed a national partnership with food and beverage delivery platform Gopuff, which also carries CBD-infused products from Medterra, Mad Tasty, Daytrip and Recess.
According to research from Brightfield Group, Charlotte’s Web was the leading U.S. CBD company in the second quarter in terms of dollar share, followed by Your CBD Store, Medterra, CBD American Shaman and cbdMD.