Start Licensing’s Ian Downes raids the licensing larder this week, highlighting a number of food and beverage initiatives across the brand spectrum.
I raided the licensing larder for my Lookout this week. This was partly due to the fact that it has been a busy week for me personally in the world of ‘food and beverage’. I’m not talking about my eating habits.
As an aside and purely based on anecdotal evidence I think there is more going on in ‘f and b’ licensing at the moment. This may be because there is more crossover between the two sectors these days, but I also think that rights holders are prospecting further from home at the moment – traditional licensing categories have become more competitive and as a result deal makers are trying to develop business in new categories.
This brings fresh challenges, ironically not least the level of competition within the FMCG sector – licensors are not just competing for space with their direct competitors but find themselves ranged against well established FMCG brands and increasingly retailers’ own brand ranges. Another challenge in the FMCG category is securing retail listings and, once these are secured, maintaining them. Buyers in this sector monitor sales and performance carefully and there is no room for sentimentality. You either sell well or risk being delisted. Life in the larder can be tough.
As noted, I had a busy week in the category myself. I was delighted to see crisp brand Tyrrell’s launch a Wallace & Gromit product exclusively in the Co-Op. The sharing bag features a specially developed Wensleydale and Cranberry flavour. This deal started from a cold call by me – I mention this as I hope it gives industry colleagues encouragement that cold calling can work and as an industry we should be prepared to seek out new opportunities.
Of course, the person you call has to be engaged with your idea and I was fortunate that the Tyrrell’s team recognised the potential in my idea. It certainly helped that, unbeknown to me, that one of the team had a background in licensing. I think this is also a great case study in terms of product development and authenticity. I think this product works well because the flavour is intrinsically linked to Wallace & Gromit and, of course, is an intriguing flavour which fits well with Tyrrell’s brand personality. The partners were also able to cooperate creatively with bespoke elements like the Wallace & Gromit still used on pack – it was tweaked to suit its purpose. There has also been cooperation around areas like social media and PR. These days FMCG brands are keen to be able to establish a direct relationship and engagement with consumers. A licensed product like this helps them tell a story.
The other element that is worth noting is the fact that this is an exclusive for Co-Op. In a retail world that is increasingly focused on price products, like this one introduce a point of difference and create a new reason for people to pop into store. Dare I say it also adds a bit of fun to the market. Indeed the fun element chimes with Tyrrell’s brand character as well. The final point to make and reflect on is that the product is on point – it tastes great and delivers flavour wise. It is important not to forget that in the food category product quality is of paramount importance. It would be easy to lose sight of this in pursuit of new business and the rush to secure a deal.
The other project that I have been directly involved in is a new range of meal kits, sauces and spice blends for my client Nadiya Hussain. Over the last two years we have been working with McCormick and its brand Schwartz. An initial product range was launched about 18 months ago. This was a very successful launch. It won a Brand & Lifestyle Licensing Award this year in the very competitive food category which was a welcome qualitative endorsement of the range. This week it has launched a new alliteration of the range introducing some new products like wet sauces. The range is focused on Curries of the World and has been launched in Tesco initially. A core message around it is ‘travelling through taste’ bringing together different cuisines in a carefully curated way. It is good to see a range and partnership flourish. Sometimes licensing can be a little bit short-term in thinking and focused on new deals.
My view is that there is real merit in nurturing partnerships over the longer term. Ultimately this approach can be more efficient. In our work with Schwartz there has been a real sense of partnership and collaboration. Nadiya has been hands on with product development and has spent time in Schwartz’s development kitchen working on the flavour blends. This level of engagement from the brand is vital to success both in terms of the authenticity of the product, but also the depth of the relationship. FMCG brands like Schwartz invest heavily in product launches like this one and it is part of an overall category strategy for them. Licensing has to be alive to this style of working and the different dynamics that surround FMCG categories.
Similarly to Tyrell’s, the partnership has also involved collaborative marketing including social media. It has been a fascinating project to be involved in and one that has given me more insight into the potential licensing has to bring freshness to a category, but also made me realise that you have to work with brands that are category experts to increase your chances of success. As noted earlier FMCG is a fiercely competitive marketplace and established brands do not yield their space lightly. Of course against this backdrop having a product range that is well crafted, good quality and on trend helps – I am pleased to say that Nadiya’s new range is already receiving very positive reviews from consumers and has passed the taste test. As an aside, it is worth noting how consumers increasingly share their thoughts about products online these days. It is important to weigh this up when managing a campaign and to think through how the reaction to products can impact a brand’s reputation noting how quickly comments can be made.
That’s enough about me! I am always pleased to be helped by another set of eyes when Looking Out. Thanks to Licensing Link Europe’s Ian Wickham for drawing my attention to the brand Zoe’s presence in Waitrose.
Zoe describes itself as a ‘science and nutrition’ company on a mission to ‘improve the health of millions’. It offers advice and tests to consumers but has also developed health supplements. Waitrose has worked with Zoe to launch Zoe’s Daily 30+ which is a savoury mix of seeds, herbs, nuts, legumes and functional mushrooms. Waitrose is offering seven day packs and single serve packs of the supplement. The single serve is linked to Waitrose’s Food to Go offer.
Food to Go seems to be a growing category for retailers – think lunchtime meal deals. The Waitrose partnership with Zoe is a great example of a retailer choosing to work with a brand expert in a specialist category as a fast track way to build a presence, draw in new consumers and access a credible brand. For Zoe it, of course, opens up a new distribution channel and the chance to expose the brand to new consumers in a retail environment that it feels would be receptive to the offer. There seems to be an increasing trend for retailers to partner with brand owners including other retailers to deliver particular products or services in their store. Seemingly they have decided that these sort of goods and services are best delivered by category experts. Again this is the sort of activation that also unlocks a marketing story and gives Waitrose scope to talk about the brand in new ways. I believe Zoe also works with M&S on another range of products, but it shows that with strategic thinking it is possible for a brand like Zoe to segment the market by careful curation of the offer and product range.
Finally, it is worth reflecting on the fact that there seems to be more of an appetite for collaboration in FMCG at the moment, seeing brands work together to create special or limited edition products.
I became aware of a couple examples this week which show the diverse approach to collaborations in the sector.
The first was the news that Gin & Juice by Dr Dre and Snoop is to get a UK launch. This is a ready to drink cocktail presented by the two rappers. This underpins the growth in the ready to drink category and also how celebrities are getting more actively involved in creating brands which they take an active role in. Things seem to have moved on with celebrities getting more actively involved with launches like this including sometimes taking an ownership stake in the company. This product is available in independents, direct to consumer and on Amazon. I am sure there is a hope and ambition that distribution will grow.
There is a real sense of authenticity to the product as it takes its name from Snoop Dogg’s 1994 single produced by Dr Dre. I’m sure this sort of approach resonates with fans and creates plenty of content for the marketing push behind the brand.
The other collaboration I noticed has a different vibe to it. I became aware of Hilltop Honey’s partnership with Planet Doughnut from an email sent to me by Hilltop Honey. I am on its database and it is a reminder that brands can build a rapport with ‘their’ audience through careful curation online. In an increasingly competitive and cluttered media market, ‘owning’ an audience can be very valuable. It is also a cost effective way of running a marketing campaign. Of course the audience and relationship needs to be carefully managed. There is an investment of time and resource to be made.
The partnership between the two brands sees Planet Doughnut create a range of doughnuts that use Hilltop Honey as an ingredient. It is a great way of Hilltop Honey showing the versatility of its honey and to reach new consumers, while Planet Doughnut has been able to develop a new range with an ingredient that adds a new flavour dynamic to the product range.
Writing this has made me very hungry – I am looking forward to a licensing themed lunch and will be raiding my Licensing Larder!
Ian Downes runs Start Licensing, an independent brand licensing agency. His X handle is @startlicensing and on Instagram he is @iandownesphotos – he would welcome your suggestions for what to look out for.
