Sweet Spot

Chocolate candy brands such as Hershey, M&Ms, and Godiva are known for their extensions (through licensing or ingredient sales) into compatible food categories such as coffee, ice cream, liqueurs, and the like. Meanwhile, candy-based properties outside the chocolate segment also have licensing programs that include complementary foods. In fact, the non-chocolate candy sector has been particularly active in food-to-food licensing of late. Just in the last few months:

• Jelly Belly and its agent CAA-GBG teamed with Dyla Brands for water enhancers in four jelly bean flavors. The product line is sold through Kroger and other grocers, as well as on Amazon.
• Perfetti Van Melle licensed its Chupa Chups lollipop brand to Vandemoortele for doughnuts featuring Chupa Chups flavors and designs, along with crushed lollipop pieces on top. The doughnuts will be sold in all distribution tiers in France, the Netherlands, and Belgium, with more countries to follow. Perfetti Van Melle also paired with Griesson-de Beukelaer for refreshment sticks—apple and strawberry flavored fillings in a crunchy chocolate coating—sold in Germany.
• Pez licensed Dolly Madison Ice Cream for ice pops in the U.S. and Canada. The products, inspired by the tropical, rainbow, and fruity flavors of original Pez candy tablets, debuted in March.
• Mondelez International partnered with J&J Snackfoods for Sour Patch Kids frozen treats in the U.S. and Canada. The novelties feature a sweet base with a sour swirl, and come in five different flavors.

While the specific product categories differ somewhat, these candy extensions parallel the chocolate extensions mentioned earlier in that they represent a way for licensors to bring their brands into new aisles of the grocery or convenience store, introduce new customers to the brand and its flavor profiles, and generate incremental revenue.

A reminder: Raugust Communications’ April e-newsletter goes out tomorrow (Tuesday, April 17, 2018). If you haven’t done so already, you can subscribe to this free publication here. This edition’s Licensing Topic of the Month focuses on digital influencers, while the Datapoint feature is about licensing agency specialization.