Redan, the owner of the rights to the “Top Secret” trademark, concluded a license agreement with Syntex Wojewoda, Żychowicz Sp. J. for selected product groups. On this account, Redan will obtain revenues specified as a percentage of the value of goods introduced to the Polish market, and the value of net revenues in the years 2024-2026 is forecast at the level of at least PLN 1.3 million, the company announced.
The agreement provides for the possibility of marking several product groups with the “Top Secret” brand, including: men’s and women’s underwear, men’s and women’s socks and flip-flops, which will be offered in several retail chains and on the Allegro platform. According to the Management Board, the established cooperation, in addition to additional revenues from license fees, will have a positive impact on increasing brand recognition and reaching new customers.
“For us, this is a very attractive solution that uses the great potential of a brand whose value has been built over many years. Importantly, as Redan and the owner of the brand, we will have the right to control the quality of the products. As part of the cooperation, we initially defined four product groups that are not directly competitive with the products offered in ‘Top Secret’ company stores and through the online store. In the future, however, we allow for the possibility of expanding this list,” said Redan CEO Bogusz Kruszyński, quoted in the release.
“The appearance of the brand in popular retail chains will certainly significantly increase the reach of new customers. Thanks to this, the ‘Top Secret’ logo will become even more recognizable, which in turn should translate into an increase in the popularity of shopping by customers also in the corporate network. Many other well-known brands successfully use this strategy. In addition to ‘Top Secret’, the same retail chains already sell e.g. goods under the Pierre Cardin, Umbro, Puma, Kappa or 4F brands,” he added.
Redan indicated that it acquired the rights to the “Top Secret”, “Drywash” and “Troll” trademarks in October 2022, which allows it to generate revenues directly proportional to the volume of retail sales of goods marked with these trademarks, which are offered in company stores. In the fourth quarter of 2022 and the first quarter of this year. net revenues on this account amounted to PLN 1.2 million. In subsequent years, these revenues should be increased by fees resulting from the license agreement just concluded.
At the end of August 2020, Redan sold shares in its subsidiary Top Secret and currently provides services for the “Top Secret” brand, which include, among others, performing all logistic operations, IT service and support in the field of back-office services. Redan also has a call option entitling it to repurchase shares in Top Secret Sp. z o. o. after September 1, 2022. Redan was established in 1995, and since 2003 it has been listed on the Warsaw Stock Exchange.