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TOTAL LICENSING
with its young male target audience. frozen Italian entrees. She has a deal with Smithfield Spe-
In the first quarter of program sales, For those that are able to think 8+ cialty Foods for 20 different products
they’ve achieved over $1 million in hours in advance about what they including spices, seasonings, dressings
sales, primarily through vending chan- want to eat for dinner and get that and sauces.
nel. Sales are certainly expected to process started while they are eating Other activity in the space includes
rise as it penetrates mainstream dis- breakfast, I suppose shaving 30 min- the Tommy Bahama line of two rums
tribution, hopefully leaving everyone utes off the front end preparation re- which industry sources rumor to be
totally stoked. ally does simplify things which is the generating mediocre results; Willie
Probably one of the most robust premise behind the Banquet Crock- Nelson Old Whiskey River and even a
categories for licensing is in the fast- Pot Classics meals that you simply Dr. Dre premium cognac.
growing jerky category. A number of need to put in your Crock-Pot and let Wine & Spirits
the leading players are supplementing cook all day. Let’s talk a little bit about what’s go-
their growth by licensing in distinctive Frozen Sweet ing on in the Wine
flavor equities to offer differentiated Now to a section of the store where & Spirits aisle. First,
product. Major players like Jack Link’s there has traditionally been a lot of we have the larger
hold licenses for multiple brands in- licensing activity. An exciting move than life personal-
cluding A.1. Steak Sauce, KC Master- is Unilever’s introduction of Goya li- ity of Donald Trump
piece and Louisiana Hot Sauce. Tha- censed ice cream and frozen novelties entering the catego-
nasi offers Jim Beam. And Bridgford as the growing Hispanic population ry with a premium
has licensed the Sweet Baby Ray’s bar- indexes very high in grocery purchas- vodka via partner
beque sauce brand which rolled out ing and is clamoring for products that Drinks America.
to Wal-Mart last year and is rolling out appeal directly to their tastes. An unusual exten-
to Walgreen’s and other national ac- Martha, Martha, Martha! We can’t seem sion for a man who
counts in 2008. to escape Martha Stewart’s domes- is a self-proclaimed
Canned Goods/ Condiments tic diva-dom wherever we go. Macy’s, teetotaler, but that
Another product line adding some Kmart, now Costco, the lady knows doesn’t stand in the
“entertainment value” to the ice how to employ licensing to build her way of The Donald
cream category is the Dryer’s Slow empire as well as she knows how to doing a deal. Now, in
Churned American Idol line. Flavors whip up a mean frittata. The Costco perhaps true Donald fashion, he claims
like Mint Karaoke Cookie, Cookies & relationship is an interesting one as the program has moved 100,000
Dreamz and One Split Wonder aren’t the parties agreed to a co-branded cases, but the public filings of Drinks
a traditional play on extending flavor relationship between Martha America don’t seem to support such
equity, rather a play on usage occa- Stewart and Kirkland Signatures, the volume. [But, hey, why let the facts get
sion (American Idol time = ice cream Costco private label brand. Thus far in the way of a good story.]
time) and experiential equities where a signature holiday ham (complete Now, perhaps in a more believable
fans get to vote for the favorite ice with its muslin wrap that evokes fond mood-altering equity fit, Jerry Garcia
cream. memories of her childhood…) and wines seem to be well-regarded as a
Frozen Savory signature soups have been introduced. quality product and beautifully feature
Quite a bit of activity is also going on Frozen foods are expected to follow. his art, for which he has built quite a
in the frozen savory part of the store. Food, perhaps even more than any reputation, on the label. This program
Kraft’s South Beach Living (formerly other of the categories she is in, is the from the Clos du Bois Winery, owned
South Beach Diet, but re-branded trickiest to get right given Martha’s by Constellation Brands, is turning a
to be more about a “lifestyle” than a standards but she also recognizes the respectable 30,000 cases per year.
“diet”) program is one of the most potential for scale can be enormous Conclusion
significant licensed programs in the since the products are consumable As consumers checkout of the grocery
food and beverage category. Spanning and can drive repeat purchases at store with their cart full of licensed
70 products and generating over $250 a velocity much greater than home products, IMC expect that next year
million in sales, this is another example furnishings. And what we know about the cart will be even more full. IMC
of a powerhouse company with mega- Costco’s average sales per sku at the Licensing project the food and bever-
brands of its own sometimes turns to $10-12 million mark per year, clearly age sector to continue to grow at a
licensing to deliver an equity, speak to this program could put up some major rate of 10% per year over the next
an audience or communicate a prom- numbers as it expands. five years. It’s an exciting time in the
ise that their own brands can’t. And then there’s Paula Deen. While food and beverage licensing world as
Similarly, General Mills has licensed she may not be at the Martha level, the brand marketers and manufactur-
Mario Batali of Food Network fame she too has an ardent fan base and ers become increasingly sophisticated
for frozen pasta dinners for club has become quite a phenomenon in about how to use licensing as tool to
stores, with the goal of tapping into her own right. That said, has she re- achieve results that leave consumers
the $152 million club store market for ally found her sweet spot in licensing. craving for more.
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