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Home | Press Releases | Food/Beverage Licensing On $8 Billio . . .

Food/Beverage Licensing On $8 Billion Growth Binge

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NEW YORK—June 14, 2011: Retail sales of licensed food and beverage products in the U.S. and Canada increased 9.5% between 2009 and 2010, according to The Licensing Letter Food/Beverage Licensing Report. And there is tremendous room for future growth: The $8.04 licensed segment accounts for just 2% of overall food/beverage product sales.

“Licensed products are available in nearly every department and aisle in the grocery store,” says Ira Mayer, publisher of the new report. “Fresh perishables such as dairy, meat, bakery and produce, drive $3.2 billion in retail sales, or 39%.” Other key categories are shelf-stable products (32%), frozen and refrigerated foods (10%), non-alcoholic beverages (10%), and alcoholic beverages (8%).

Food-based brand extension programs, in which food and beverage brands extend into adjacent food and beverage categories through licensing, account for 51% of the total market. Restaurant brands follow with 35%, and cooking, diet, and health-related brands and personalities account for 8%.

The Food/Beverage Licensing Report identifies distinct characteristics associated with this sector, including regulatory, food safety and quality issues; how ingredient sales, recipes and flavor formulations affect payments; the high investment required to secure placement at retail, and more.

“Of the top five food and beverage processors in the U.S. — Nestle, Tyson, Kraft, Pepsico, and Anheuser-Busch InBev, only Tyson is not involved in licensing,” notes Mayer. Among the top 25 processors, 76% are involved in licensing.

The Licensing Letter Food/Beverage Licensing Report is 103 pages, and includes 32 charts, tables and graphs, along with 13 case studies covering such companies as Welch's, Trump, and Disney. For a complete table of contents and list of exhibits, see www.epmcom.com/foodbev. The report is published by EPM Communications, Inc., which also publishes The Licensing Letter, The Licensing Business Handbook, International Licensing: A Status Report, and other newsletters, directories, and research studies.

Media contact: Ira Mayer, Publisher, at 1-917-951-0556 or imayer@epmcom.com.




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