Food Licensing Marketplace Gets More Crowded

Food licensing is now the "hot" segment with a rush into the category, both by licensors and licensing agents eager to establish their bona fides with some quick successes. One of the most-active licensors has been the Food Network, which currently has a line of kitchenwares through Kohl's.

Not to be outdone, fellow cable network Bravo is licensing shows like "Top Chef" to wines and cutlery, along with "Real Housewives of Orange County" to Kooba handbags (rumors of a license to Glock for "Real Housewives of New Jersey" are just that- rumors). Both cable networks have aggressively mined product placement strategies in the past with companies like Hershey and Moët & Chandon, but received no royalties from any sales generated by this high-profile exposure. Product placement is a long and lucrative method for entertainment companies to increase profits, and has become more and more active (some would say intrusive)— think of Tom Hanks in "Castaway" and the value to FedEx.

In a bit of licensing insider trivia, Food Network has been lobbying LIMA, the licensing trade association, to have its products moved from the "entertainment" category to "corporate brands" as part of LIMA's annual awards balloting. That would mean they would no longer compete against Disney and the other studios, but against corporates like Burger King (nominated for this year's "Best Corporate Brand Extension"). Food Network believes they will far better competing against Jeep, Burger King and other true corporate brands in the annual contest for licensing glory.

In other food licensing news:

• It's Miller Time for Sara Lee who is launching Hillshire Farm "Miller High Life Beer Brats." The sausages will be cooked in the beer with six-packs retailing for $3.99 at national supermarket chains.

• Regional QSR Steak 'N Shake has hired a licensing agency to leverage the brand to retail. The Indianapolis-IN firm was taken over by private equity financier, Sardar Biglari, last August after a showdown with the previous management following the company's generally dreadful stock performance. Recent financials have shown the chain emerging from those doldrums.

• In news reported to our subscribers previously, Kraft has confirmed launching flatbread pizza and microwavable flatbread melt sandwiches under both its DiGiorno and California Pizza Kitchen-licensed brands.


Excerpted from BSLG's weekly subscription news reader service Food Business News. To subscribe or for information about licensing, contact Broad Street Licensing Group (tel. 973-655-0598)