Partnering with a major sports team, much less a league itself (i.e. NFL, NHL, NBA, MLB), is often only afforded to bigger companies, making it a dream for small firms trying to build a footprint for their brand and grow value. So, when it happens, it is special as it can serve as a significant corporate catalyst.
On Monday, U-Vend, Inc. (OTCQB:UVND) announced landing such a deal, penning a licensing agreement with the National Hockey League to become the Official Ice Cream of the NHL. U-Vend, a consumer products and technology company headquartered in Santa Monica, Calif., with locations in Stoney Creek, Ontario, Canada, Chicago, and Las Vegas, develops, distributes and markets various next-generation, self-serve electronic kiosks in a variety of retail locations in North America. The young company adds the NHL to a growing lineup of high-profile partners that already includes Mini Melts USA, Del Monte (NYSE:FDP) and Arthur’s Smoothies.
It was less than two weeks ago that U-Vend disclosed that they developed the proprietary, premium ice cream novelty product called "Pucks Premium Ice Cream™," but they obviously had big plans immediately following the unveiling of the product geared towards hundreds of millions of hockey fans. Today’s announcement includes usage of NHL team branded marks on U-Vend’s puck-shaped ice cream bars that will feature logos on hockey stick-shaped sticks. The partnership also includes exclusive use of NHL branding for digital advertising on U-Vend’s self-serve vending machines and "grab-and-go" kiosks.
"U-Vend is a great addition to the NHL's thriving roster of licensees, with exclusivity in a unique category for us," said Barry Monaghan, NHL VP, Retail Sales and Marketing, in today’s news release. "Their NHL-branded product is perfect for the League's passionate hockey fans, who consume the game year-round."
U-Vend will be selling the product at convenience stores and large national retail grocery stores across Canada beginning this summer. In the summer of 2016, sales for NHL-branded Pucks will widen to U.S. retailers and the product will be available via vending machines and self-serve kiosks in both countries. To that end, investors may want to keep their ears to the ground for distribution agreements that will lead to stocking orders and sales channel expansion for the company.
"We believe we have created a strong and multi-faceted marketing engine with the introduction of the Pucks brand," said Paul Neelin, Founder of U-Vend and Chief Operating Officer, in today’s announcement. "Not only are we able to brand the outside wrapper of the Pucks ice cream bar, but we’ll also print NHL team marks on the mini hockey stick that is inserted into the ice cream Puck, making it very collectable."
From an investor’s perspective, shares of UVND wrapped 2014 at 21 cents and after a brief dip as low as a dime each are on the rise so far this year as the company has begun the initial roll out of its products, increased its depot capacity, acquired more kiosks and added staff to support growth. Shares closed trading last week at 25 cents for a gain of 19% so far in 2015. Based upon data from QuoteMedia showing only 9.5 million shares outstanding, that equates to a paltry market capitalization of $2.38 million, leaving U-Vend with plenty of upside potential as it continues to execute on its business model and grow its already impressive list of partners.
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