OTC Stock Review

Total Apparel Group, Inc. (Pink Sheets: TLAG) was founded in 2006 and has offices in New York and L.A. TLAG is a master distributor and licensee of market-leading international registered trademarks in the branded apparel, footwear and accessories sectors. 

TLAG recently leapt to global prominence with its selection as the official U.S. Master Distributor of FIFA™ and FIFA World Cup™ Licensed Product. For the first time in its 104-year history, FIFA – governing body of soccer, the world’s most popular sport – is launching an official collection of merchandise. And worldwide Master Licensee Global Brands Group has appointed TLAG as its official ambassador to the U.S., in the year leading up to the predictably lucrative 2010 World Cup.

Market Opportunity

Founded in 2006 and with offices in New York and L.A., Total Apparel Group, Inc. is a master distributor and licensee of market-leading international registered trademarks in the branded apparel, footwear and accessories sectors. TLAG recently leapt to global prominence with its selection as the official U.S. Master Distributor of FIFATM and FIFA World CupTM Licensed Product. For the first time in its 104-year history, FIFATM – governing body of soccer, the world’s most popular sport – is launching an official collection of merchandise. And worldwide Master Licensee Global Brands Group has anointed TLAG as its official ambassador to the U.S., in the year leading up to the predictably lucrative 2010 World Cup.

To round out its soccer portfolio, TLAG has inked a deal with BasicNet Group, SpA, to become the U.S. and Canadian Master Licensee for the Kappa® and Robe Di Kappa® brands, two of the world’s leading fashion driven soccer lifestyle brands. Today, nearly 18 MM Americans play soccer1, forcing the game on the nation’s consciousness. In 2006, over 11% of American polled expressed interest in the World Cup2, for a possible 33 MM fans. As a result, the U.S. gross audience for the 2006 World Cup was 85 MM viewers, up 39% since the tournament prior3 – a trend likely to continue with the 2010 Cup. That has translated to consumer behavior. Following the 2006 World Cup, 45% of consumers polled confirmed that a FIFA line would attract their attention3. Yet such a line did not exist – until now. And standing to gain from the U.S. introduction of the FIFA line is Total Apparel Group.

Investment Paradigm

Become the leading product licensing, brand management and retail development partner for preeminent internationally recognized sports, entertainment and lifestyle brands in the U.S. 

Investment Thesis

TLAG has the exclusive rights to the U.S. launch and distribution of one of the world’s most powerful brands. FIFA has corporate sponsorship relationships with global giants such as Coca-Cola, Sony, Visa, EA Sports, Adidas and more. In discussions with major retailers for the launch of FIFA and FIFA World Cup event merchandise. TLAG platform provides economies of scale for multiple brand distribution strategies.

Catalysts

Wholesale and retail sales are scheduled to begin Q2. Also planned is the beta test of the FIFA NY retail store, scheduled to open in Q4 '10. Additionally, there are plans to open 5 additional Official FIFA retail stores over the coming years. TLAG also plans to expand its relationships with existing partners such as Global Brands Group and BasicNet who own and/or manage several prominent international brands.

Management

Janon Costley, CEO - For the past 8 years, Janon Costley has created corporations, directed their development, and nurtured their successes through the application of his dynamic management techniques, keen market awareness and unique ability to identify trends and new business opportunities. As CEO, Janon is the brand ambassador of Total Apparel Group, Inc. He is responsible for the vision and direction of the organization, establishing strategic alliances, managing the corporate governance and maintaining the overall financial health of the organization.

Duarte Da Silveira, President - As the former President and CEO of soccer equipment and apparel manufacturer Kelme USA, Inc., Mr. Da Silveira has a proven track record of leading, managing and driving sporting goods business to meet and exceed sales and revenue objectives. He is now responsible for managing all facets of the day-to-day operations of TLAG. He is also responsible for managing TLAG’s national sporting goods and sports specialty store sales force. Prior to Kelme USA, Duarte served as Market Manager (Guatemala City) and Operations Manager (Caribbean and Central America) for Pepsi Cola International.

Robert Lawand, CFO and Director - Robert Lawand has served as a director of the company since January 1, 2006. He is a Chartered Accountant in Canada, licensed to practice in the provinces of Quebec, Ontario and British Columbia. From 1981 to the present, Mr. Lawand has been engaged in the private practice of accounting, providing services to many companies and individuals in the United States and Canada. Prior to then he has served in the audit departments of such accounting firms as Deloitte and Touche in Canada.

Mitch Porigow, EVP Sales - Mr. Porigow has over 30 years of sales and management experience in the apparel industry. As Senior Vice President for Perry Ellis America, Mitch was responsible for launching the brand and growing it to a $20 MM property. He has also worked in executive and sales management roles for such brands as New Balance, Levi Strauss, Lacoste, Le Coq Sportif and more. Mitch is now responsible for managing and developing TLAG’s national sales team (department store, specialty and big box) and maintaining key relationships with upper level management at major department stores, national chain specialty stores, big boxes and discounters.

Summary

The FIFA branded ‘Event’ collection is one of five lines being launched for the first time in Spring 2010. ‘Event’ looks to South Africa, the host nation of the 2010 FIFA World Cup for inspiration. The patterns and colors of the range reference the passion and culture of the country’s vivid tribal history, recognizing the same values in the world of soccer. The collection comes in a rainbow of hues including royal blue, sport green, red and sun yellow, and the striking graphics resonate with 1990s influence. Fun and energetic, the range includes a selection of stylish hoodies, T-shirts, polo shirts, jackets and tracksuits for men and women. 

This season the women’s line has been extended to include hooded dresses, micro shorts, street style ¾ length track pants, as well as hoodies, T-shirts and cutout vests. Key pieces of the collection are the asymmetric dress and cropped women’s shell jacket, both of which hold the striking angular graphics. The patterns seen throughout ‘Event’ are based on maps of the countries of Africa and African typography. The men’s range includes polo shirts, hoodies, street jackets, shell jackets and various styles of pants.