Food Licensing Tip #6: Licensor Support

One of the most-important things a licensor or brand can do is drive the business of their licensees. Couponing, either cents-off, BOGO (buy one, get one) or Get One Free, has been a major part of grocery marketing for generations. Since the onset of the Great Recession last year, coupon usage has shot up as consumers look for ways to gain value for their money. But many food licensors worry that couponing will drive sales AWAY from their restaurants. Franchised restaurants are particularly sensitive to licensing food products. I recall several years ago speaking with Stone Cold Creamery about licensing their brand. The fellow I spoke with told me their franchisees would never accept licensing.

In actuality, grocery sales enhance restaurant sales instead of cannibalizing them:

1.) the restaurant experience is totally different & consumers use meals at home differently than going out to eat

2.) the demographics are often different-- Burger King's primary consumer is young males, while moms are the "gatekeepers" at the grocery store.

Restaurant brands are uniquely positioned to support their licensees because they already have a consumer base pre-disposed to their brand. Coupons are a superior way to get their customers to try the grocery versions of their products, yet few licensors are willing to make that move. Whether because they've taken a pounding lately or because they "get it," Starbucks has initiated a remarkable cross-channel marketing blitz designed to promote its grocery items (licensed by PepsiCo) through coupon books given out in its cafes.


The books contain discounts of $1 off Starbucks Ice Cream, $2 off Bottled Frappuccino beverages (4-pack), $2 off Starbucks Doubleshot espresso drink (4-pack) and $1 off Packaged Coffee sold in the grocery channel (10-ounce and 12-ounce).

Interestingly enough, Starbucks' idea for the promotion came from consumer suggestions submitted to Starbucks via www.starbucksidea.com.

For a look at an excellent "case study" on Starbucks, click here.

For information about licensing, contact Broad Street Licensing Group (tel. 973-655-0598)