Australian brand Hills has signed a 19 year licensing deal with Woolworths, giving the retail giant exclusive rights to the name and product including the iconic Hills Hoist clothesline.
While Hills maintains ownership of the brand and the intellectual property of product patents, the agreement gives Woolworths the rights to the Hills heritage brand as it applies to more than 240 products as well as exclusive marketing and distribution rights. Hills will receive income from the use of the brand through an annual licensing fee which will increase as product sales exceed agreed levels.
The licence is for a minimum of seven years with three options for renewal for additional four year periods.
Woolworths home improvement managing director Matt Tyson said the agreement is part of the expansion plan for its Masters brand.
At its most recent Annual General Meeting, Woolworths said the home improvement chain will not achieve its slated goal of breaking even in 2016 but will be a focus going forward.
“Masters, Home Timber and Hardware and Big W customers will now have access to the biggest range of Hills products at Australia's lowest prices,” Tyson said.
“Hills is Australia's leading laundry, clothesline and garden spray supplier, with the largest share of the $75 million clothesline category. It will be a strong partner and another example of Masters range expansion plan.”
Hills CEO Ted Pretty said the brand will see a boost in growth given the market strength of Woolworths.
“This agreement will also allow Hills to focus on building Its technology business, particularly the security and healthcare portfolio to achieve growth ambitions,” Pretty said.
“We have no doubt that Woolworths is the right partner to successfully distribute and market our products.”
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