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TOTAL LICENSING
IMC Licensing
THE IMC ANNUAL
represents
more food
and beverage
FOOD LICENSING REPORT
brands and
According to reports, corporate trade- ties like Disney and Dora have aban- reached $54 million and achieved 80%
has done
marks and brands licensed into food and doned the sugary cereal and confec- ACV; a clear sign that licensing is an
more food
beverage products generated $6.7 billion tion aisles in favor of more healthful effective tool to reach consumers.
in retail sales in 2007. While IMC believe alternatives. You name it – apples, car- Snack Foods - Bakery
and beverage
this to be the most accurate study avail- rots, bananas, tomatoes – all have li- Bakery is yet another part of the gro-
licensing deals
able, if it captured all of the entertain- censes with popular properties to ap- cery store that had been largely un-
ment brands licensed into the food and peal to mom and deflect the scrutiny touched by licensing is starting to see
than any other
beverage sector, they believe this number from consumer watchdog groups who some licensing activity. IMC are see-
agency in the
would nearly double. Powerhouse brands chastised these brands for contribut- ing manufacturers like BC Bundt and
like Sunkist are generating over $1.4 bil- ing to childhood obesity through their the retailers themselves licensing in
United States.
lion in licensed food and beverage prod- connection with less-than-healthy brands like 7UP, Orange Crush and Dr

uct sales, while entertainment brands like product offerings. Pepper to create fresh baked goods.
Disney are generating over $1 billion in Is it working? As a mom, Carla Ber- It will be fun to watch what else this
This 2008
this sector too. Add in other licensing stars nosky knows that it has made getting category can cook up as brands try to
report,
like General Mills, Mars, Kraft, Dora the through the grocery more challenging, play a larger role in this part of the
Explorer and TGIFriday’s, and you can see but her kids still spit out the edamame store. Another notable introduction
by Carla
how the numbers would easily exceed once it’s defrocked from its cute Dora into the beverage category was Pep-
Bernosky,
$10 billion in retail sales. pouch. That said, she is still willing to siCo’s Gatorade doing a true licensing
Products, Products Everywhere!
try and, apparently is not alone. Fresh deal with Tiger Woods for Gatorade
represents
In 2007 over 105,000 new products
produce licensee Castellini reports Tiger. Industry experts peg this deal
their overview
were introduced at grocery. For bet-
sales increases of 11% - 44% across to be worth up to $100 million to
ter or for worse, about 88% of these
its product offerings bearing the NAS- Tiger over the five-year initial term;
of the activity
will fail. While there is no data on how
CAR license over their unbranded far more lucrative than their typical
in the food
many of these new product introduc-
offerings. Retailers like Hanaford are endorsement deals that are usually in
tions carry licensed properties, IMC
reporting that licensed produce is the $1 million range.
and beverage
do see in their own work that their
outselling conventional by 10%. Inventure Group, formerly known
licensing
product survival rates far exceed
Beverage as Poore Bros., has a history of suc-
these dismal odds.
There have been a several introduc- cess with licensing as the platform for
sector.
Why? They believe the coupling of a
tions into the beverage aisle, but Ber- growth in the snack food aisle. This
strong brand with an innovative prod-
nosky is focussing on just two. The first strategy has helped them make a dent
uct offering can make the difference in
is particularly interesting because it is in the land dominated ruled by giant
capturing and holding the attention of
one of the strongest consumer prod- Frito Lay. The TGIFriday’s snack food
the fickle consumer. While they could
uct companies in the world licensing program, now in its eighth year, is do-
talk about new introductions and ac-
a brand IN to achieve what its own ing $45 million in sales. Inventure is
tivity in every aisle of the store, IMC
brand could not. Procter & Gamble, hoping that redoing the packaging and
are going to highlight just a few of the
makers of the declining Folgers brand, look of the program will help reinvig-
major categories in this report.
licensed in the Dunkin Donuts brand orate sales for the future. In the mean-
Produce
for packaged coffee. (For those out- time, they have taken on other brands
Produce is a retail category that had
side the US Northeast, Dunkin Do- like Cinnabon, which they have since
little if any branding five years ago, but
nuts is as much a coffee brand as it abandoned, and most recently Burger
is now bustling with licensing activity.
is a donut brand.) Having launched in King. Burger King has embraced licens-
Most notably, entertainment proper-
Spring of 2007, its sales have already ing as a way to deepen its relationship
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