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Brand Licensing in the Food or Beverage Industry

When we go shopping at the supermarket, the main thing we do is buy food or beverages. However, in the majority of cases, we unconsciously purchase licensed products. Almost half of the entire licensing business operates within the food or beverage industry, and this trend is evident across all domains where food is involved. Thus, brand licensing in the food or beverage industry is prevalent.

Over the past few years, there has been an explosion of licenses in the food and beverage domain. Many of you may wonder how this type of business uses licenses. To maximize profits, companies have to utilize licensing as their primary option. They use the following methods:

  • Food for food: this option is highly viable, given the wide variety and high volume of products in this category of business. The brand owner can, for instance, add the same flavor to different products that have a similar structure.

  • It is possible to print different food products on the surface of garments, such as t-shirts, which celebrities can wear. Similarly, designing different themes for various other products that are not from the food industry can give more power to the brand in other fields of interest.

  • From non-food to food: this option is especially useful for products aimed at children. Examples include potato chips with toys on the cover or chocolate with cartoons.

When licensing food and beverage products, it is essential to note that the process itself incurs lower investment costs for companies than producing new products from scratch. While it is more challenging to achieve success with a license in this industry, proper planning and market research can make it the best-selling product. Therefore, licensing such merchandise should be done with caution.

After setting a good strategy, the next step toward success is picking appropriate partners, which can also be challenging. Few fit the company's plans. The primary difference between food and beverage licensing and licensing for other products in other areas is that food and beverage products do not blend well with non-edible products.

In conclusion, brand owners contemplate new methods of using licensing to their advantage and gaining as much as they can in times when prices are a significant factor, investment budgets are low, and advertising is overwhelming. Proper planning should make them stand ahead of the competition.

Please refer to our website for available brands for licensing.

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