Sugar and Spice

Many licensors and licensees involved in the food and beverage category are trying to find ways to meet consumers’ stated desires for healthier foods. They also want to comply with industry and government initiatives that move them in a healthier direction, particularly when it comes to children.

That said, if food-to-food licensing deals announced over the past few months are any indication, food and beverage brand extension remains more about splurging than sensible snacking. For example, many recent deals have focused on sweet treats that combine two sugar-filled products into one:

• U.K.-based confectionery company Swizzels Matlow licensed Brand of Brothers for ice creams inspired by Love Hearts, Drumsticks, and its other candy brands, to launch in 2018.
• Donut maker Krispy Kreme signed Jelly Belly for a line of jelly beans based on original glazed, cinnamon apple filled, chocolate iced with sprinkles, and other donut flavors.
• Dr. Pepper Snapple Group authorized Café Valley Bakery for a cake based on Dr. Pepper; the new item is being added to a range of other soda cakes tied to 7Up, A&W Root Beer, and Orange Crush.
• Entenmann’s baked goods will see its cake varieties, such as dark chocolate mint cookie crunch and dark chocolate raspberry burst, translate into chocolate bars through a deal with the Praim Group.
• Mondelez licensed its Oreo brand to Post for a line of Oreo cereals. This is a reintroduction of a product that had been available, exclusively at Walmart, from 1998 to 2007 but had been off the market for the decade since.

While a large percentage of food-to-food licensing deals of late have been along the lines of these examples, that does not mean there are no licensing agreements involving better-for-you foods and beverages. Deals focusing on fruit and vegetables, organic and natural items, and functional foods have all been on the rise in recent years, although the healthier portion of the greater licensed food and beverage sector remains relatively small.

At any rate, the interest in wholesome options certainly does not seem to have had a negative impact on the more decadent side of the spectrum, as the pairings above illustrate.