Nickelodeon Signs First Global Toy Deal for SpongeBob SquarePants

Alpha Group US signed a master toy agreement for SpongeBob SquarePants, marking the first global licensing pact for the property, says a Nickelodeon Consumer Products spokeswoman. The collection of plush, collectibles and other products will launch in 2019. For Alpha Group US, a subsidiary of China-based Guangdong Alpha Animation and Culture Co., the license is the first major agreement since changing its name from Auldey Toys in 2016. Alpha, which opened in the U.S. as Auldey in 2015,  has a licensing agreement for toys for the animated series Super Wings.

Contacts:

Alpha Group US, Brehan Maul, VP Marketing, 844-303-8936.

Nickelodeon Consumer Products, Jon Roman, SVP Toys, 212—846-2543

Starbucks Consumer Packaged Goods Sales Decline

Starbucks Corp.’s consumer packaged goods revenue? declined 0.3% to $435.8 million in Q1 ended Dec. 31 as the company moved to revamp the merchandise mix at its stores. Starbucks, which carries a mix of licensed and sourced products in its stores, is cutting 30% of more than 200 SKUs that are sold atthe front of its stores, Chief Financial Officer Scott Maw told analysts. The decision to drop some products “increases our focus and reduces” complexity, Maw said, adding that trimming the SKUs will lower same-store sales by 1.5% over the course of 2018.

The cutback doesn’t affect Starbucks’ licensed bottled drink business, which includes ready-to-drink products supplied by Pepsi North America that produced strong sales in Q1, Maw said. Licensee Anheuser-Busch has sold more than 1.9 million bottles of Teavana tea since launching the program last year, Maw said. Licensee Kraft Foods, which sells Starbucks ground coffee at retail, also is readying packaged Teavana tea for launch late this year. Licensee Tingyi also has sold 30 million bottles of Frappuccino beverages since introducing it in China in late 2016, Maw said.

Meanwhile, Starbucks Q1 net income rose to $2.2 billion from $751 million a year earlier due partly to the sale of its Taza tea brand to Unilever. Starbucks’ total revenue rose 5.9% to $6 billion on a 2% gain in same-store sales.

Contact:

Starbucks, Scott Maw, Chief Financial Officer, 206-447-1575ennis Moore, Chief Financial Officer, 856-532-6603

Meredith Closes on $2.8 Billion Purchase of Time

Meredith Corp. closed on its $2.8 billion of Time Inc., adding Time, People, and Sports Illustrated to a roster that includes Better Homes & Gardens, AllRecipes, Shape and others. The Time titles will be part of a “strongly profitable” licensing business, Meredith Executive Chairman Steve Lacy told analysts.

The shape the combined licensing business will take is still being finalized. Meredith, which handles licensing internally under Elise Contarsy, has a wide-ranging licensing program (i.e. Better Homes & Gardens real estate agencies, EatingWell frozen meals). For its part, Time has also been an active licensor, for example last year creating the Sports Illustrated Swimsuit Enterprises group to license the Sports Illustrated Swimsuit brand.

Overall, Meredith’s net income in Q2 ended Dec. 31 improved to $159.3 million from $71 million a year earlier despite a 5.6% decline in revenue to $418 million, due largely to a decrease in political advertising.

Contact:

Meredith Corp., Joe Ceryanec, Chief Financial Officer, 515-284-3000, joe.ceryanec@meredith.com