Breaking New Ground

A handful of deals announced in the latter half of 2017—all focused on the food and beverage industry but involving different property types—illustrate some of the ways licensors and licensees can innovate, even in a very crowded landscape:

• Creating something brand new. In December, the Portland Trail Blazers paired with Brew Dr. for a special-edition bottle of kombucha (fermented tea). Both companies are based in Portland and the product was sold at the Trail Blazers’ home, the Moda Center, and at regional retailers in Oregon and Washington. The deal marks one of the first to involve kombucha, a beverage that has seen rising sales, as a licensed or promotional item.
• Pioneering within a property type. Dolce & Gabbana partnered with Pastificio de Martino for a two-year deal involving a limited edition of 5,000 tins containing a curated selection of pastas, special packaging for a variety of individual pasta shapes, and an apron. The two companies, both based in Italy, will market the products in high-end food shops such as Buon’Italia in New York and Harrods Food Hall in London. While other properties have lent their names to pastas, this is an unusual venture for a fashion label.
• Carving a new niche in a hot category. The wine, beer, and spirits segment has been of strong interest in recent years for properties of many types, with celebrities particularly active. And prosecco sales in general have been on the rise. But licensing deals for prosecco have been few and far between until last year, when Giuliana Rancic partnered with Terlato Wine Group in November for Giuliana Prosecco and Christie Brinkley teamed with Iconic Brands in July for Bellissima Prosecco, initially available in Target stores in Indiana.

Because they represent a new direction, most of these agreements are promotional or narrow in scope, as the partners limit their risk and try to position the products as something special. All demonstrate that it is possible to cut through the clutter by introducing new-and-different initiatives that catch the eyes of consumers and the press, even in today’s competitive environment.