AGENDA REPORT
Meeting Date:
Item Number:
To:
From:
Subject:
Attachment: 1. April 11, 2022 Liaison Report
RECOMMENDATION
The Beverly Hills City Council Liaison Branding and Licensing Committee, Councilmember Mirisch and Councilmember Friedman, recommends the City Council approve the use of the likeness of the Beverly Hills Shield by Glossier, Inc. (Glossier) and enter into an agreement for the use of the likeness of the Beverly Hills Shield by Glossier in its display on coffee shop supplies and staff aprons.
INTRODUCTION
This item seeks City Council approval of the recommendation of the Beverly Hills City Council Liaison Branding and Licensing Committee to approve the use of the likeness of the Beverly Hills Shield by Glossier, a popular beauty retailer, for use of the likeness of the Beverly Hills Shield at the ‘Alfred at Glossier Alley’ coffee shop location. Under the agreement terms proposed for approval, the City will receive a one-time, settlement agreement of $1,666.67 for the unapproved use of the likeness of the Beverly Hills Shield prior to approval as well as annual payments of $20,000 for a term of five (5) years.
BEVERLW
HILLS
d
December 6, 2022
E-11
Honorable Mayor & City Council
Laura Biery, Marketing and Economic Sustainability Manager
APPROVAL OF THE RECOMMENDATION OF THE BEVERLY
HILLS CITY COUNCIL LIAISON BRANDING AND LICENSING
COMMITTEE REGARDING THE USE OF THE LIKENESS OF THE
BEVERLY HILLS SHIELD BY GLOSSIER, INC.; AND
AUTHORIZE THE CITY MANAGER TO ENTER INTO
AN AGREEMENT, SUBJECT TO APPROVAL BY THE CITY
ATTORNEY, FOR THE USE OF THE LIKENESS OF THE BEVERLY
HILLS SHIELD BY GLOSSIER, INC.
Meeting Date: December 6, 2022
DISCUSSION
Staff receives inquiries from individuals and businesses looking to use the Beverly Hills Shield or its likeness on products and merchandise. Additionally, when Staff discovers brands are using the Beverly Hills Shield or its likeness without prior permission, brands are contacted to discuss either ceasing use or explore a possible license agreement if interested. It was discovered that ‘Alfred at Glossier Alley’ had been using the likeness of the Beverly Hills Shield on marketing imagery since December 2021. When Staff discussed the use of the likeness of the shield with the representatives of Alfred Coffee, a request to explore licensing of the likeness of the Beverly Hills Shield was made. As such, Glossier/Alfred were referred to the City’s branding and licensing consultant, CMG Worldwide, Inc. to begin discussions regarding the licensing of the likeness of the Beverly Hills Shield.
Concluding those discussions, an item was presented to the Beverly Hills City Council Liaison Branding and Licensing Committee (Committee) on April 11, 2022, to discuss the use of the likeness of the Beverly Hills Shield by Glossier at the ‘Alfred at Glossier Alley’ location and provide direction.
Founded in 2014, Glossier is a retail beauty brand specializing in skincare, makeup, body care, and fragrance. Glossier LA is located at 8523 Melrose Avenue in West Hollywood. Adjacent to the West Hollywood location is Alfred Coffee Shop which has been branded since December 2021 as ‘Alfred at Glossier Alley.’ Customers can enjoy a unique Glossier Pink Latte branded by Alfred Coffee.
As part of the ‘Alfred at Glossier Alley’ experience, the Glossier team has created several custom designs using the likeness of the Beverly Hills Shield including:
cold cups
hot cups
coffee sleeves
drink carriers
aprons
menu A-frame
handle bags
pastry bags
napkins
The logo below is utilized on these various custom items as well as signage at the location:
During the April 11, 2022 Liaison Meeting, CMG Worldwide, Inc., the City’s trademark licensing agency, attended to receive feedback and direction regarding the use of the likeness of the Beverly Hills Shield by Glossier.
After further discussion during the Liaison Meeting, the Committee directed CMG Worldwide, Inc. to work with Glossier to bring forward an item to the full City Council with a recommendation for approval.
-
Meeting Date: December 6, 2022
If approved by the City Council, a license agreement will be executed with terms that include the following:
Term: Five (5) years from December 1, 2021 – December 31, 2026.
Goods: Glossier will use the likeness of the Beverly Hills Shield in its display on coffee cups, coffee sleeves, pastry bags, napkins, drink carriers, handle bags, staff aprons. The “Goods” will be exclusively for use at the Alfred’s Coffee location named ‘Alfred At Glossier Alley’, located at 8509 Melrose Avenue, West Hollywood, CA 90069 (the “Store”). The likeness of the Beverly Hills Shield will also be used in the logo for branding usage at the Store; and incidental promotional use relating to the promotion of the Store from the period beginning on December 1, 2021 and ending on December 31, 2026 (the “Term”).
Market and Territory: Territory to be solely the ‘Alfred At Glossier Alley’ store location and Alfred Coffee social media.
Settlement Fee and Annual Payments: Glossier shall pay a one-time, settlement fee of $1,666,67 for the unapproved use of the likeness of the Beverly Hills Shield prior to receiving approval as well as an annual payment of $20,000 for a term of five (5) years from December 1, 2021 – December 31, 2026.
FISCAL IMPACT
The fiscal impact of the approval of the use of the likeness of the Beverly Hills Shield by Glossier is $20,000 annually for a term of five (5) years from December 1, 2021 – December 31, 2026. Additionally, Glossier will pay a one-time settlement agreement for the unapproved use of the likeness of the Beverly Hills Shield prior to receiving approval in the amount of $1,666.67. This brings the total fiscal impact to $101,666.67 over the term of the agreement.
Nancy Hunt Coffey,
Assistant City Manager
Approved By
Attachment 1
CITY OF BEVERLY HILLS
POLICY AND MANAGEMENT
MEMORANDUM
TO: City Council Liaison/Branding and Licensing
FROM: Laura Biery, Marketing and Economic Sustainability Manager DATE: April 11, 2022
SUBJECT: Request for Use of the City Shield by Alfred Coffee and Glossier ATTACHMENT: N/A
INTRODUCTION
The City periodically receives inquiries about the use of the Beverly Hills shield. Alfred Coffee (a coffee retailer) and Glossier (a cosmetic brand) are requesting to use the Beverly Hills shield as part of “Alfred at Glossier Alley.” This item was previously scheduled for discussion at the Wednesday, April 6, 2022 City Council Liaison/ Branding and Licensing Committee meeting however due to time constraints it was not able to be heard that day.
DISCUSSION
Staff receives inquiries from individuals and businesses looking to use the Beverly Hills shield on products and merchandise. Additionally, when staff discovers brands are using the Beverly Hills shield or its likeness without prior permission, they are contacted to discuss either ceasing use or explore a possible license agreement if interested. It was discovered that Alfred at Glossier Alley had been using the likeness of the Beverly Hills shield on marketing imagery since December 2021. When staff discussed the use of the likeness of the shield with the representatives, a request to explore licensing of the shield was made. As such, they were referred to the City’s branding and licensing consultant, CMG Worldwide, to begin discussions regarding the licensing of the shield.
Founded in 2014, Glossier is a retail beauty brand specializing in skincare, makeup, body care, and fragrance. Glossier LA is located at 8523 Melrose Avenue in West Hollywood.
Adjacent to the West Hollywood location is Alfred Coffee Shop which has been branded since December 2021 as “Alfred at Glossier Alley.” Customers can enjoy a unique Glossier Pink Latte branded by Alfred Coffee.
As part of the Alfred at Glossier Alley experience, the team has created several custom designs using the likeness of Beverly Hills shield including:
cold cups
hot cups
coffee sleeves
drink carriers
aprons
menu A-frame
handle bags
pastry bags
napkins
2 The logo concept below is utilized on these various custom items:
CMG Worldwide has provided the following negotiated deal terms for the proposal:
Alfred at Glossier Alley Proposal
Term: 5 years
Fee: $20,000 annually (to be paid quarterly and prorated back to December 2021 when the brand launched)
Products: cold cups, hot cups, coffee sleeves, drink carriers, aprons, menu Aframe, handle bags, pastry bags, napkins Distribution
Channels:
Alfred at Glossier Alley Location at
8523 Melrose Avenue, West Hollywood, CA
It should be noted that while there is an Alfred coffee location in Beverly Hills (490 N.
Beverly Drive, Beverly Hills), the co-partnership with Glossier using the shield is for the Glossier Alley location only.
FISCAL IMPACT
If the above proposed terms are accepted, the fiscal impact of the Alfred and Glossier license agreement would be an annual payment of $20,000 (to be paid quarterly). The payments would be prorated back to December 2021 when the brand launched. The term for the agreement is 5 years and the fiscal impact over that term would be $100,000.
RECOMMENDATION
It is recommended that the City Council Branding and Licensing Liaison Committee provide direction regarding use of the Beverly Hills Shield by Alfred and Glossier. If the terms above are agreed upon, an agreement may be drafted for review and approval by the full City Council at a future City Council meeting.
) negotiated deal terms for the propc