Despite U.S. confectionary sales dipping slightly last year (0.2%), the licensing out of candy brands licensing is on the rise. Brand owners have turned to some unexpected co-branding and licensing combinations.

For example, Hershey’s and D.G. Yuengling & Son Brewery turned out a chocolate porter in bottles last fall, advancing from a bar tap-only version introduced in 2019. And Just Born’s Easter staple Peeps brand broke into cosmetics with licensee HipDot’s eyeshadow and facial sponges as part of a limited edition promotion.

Indulgence and Nostalgia
“There were a lot of things coming together during COVID that highlighted the indulgent brands people are consuming,” says Michelle McLaughlin, CEO at Brand Activation Consulting, which represents Just Born and Hershey’s (general merchandise) in licensing. “Consumers were looking for nostalgia and things that they knew, so that is where we went”.

For many candy companies – as in much of corporate licensing – the goal is more about “impressions and awareness” outside candy aisle than about revenue, says James Slifer of The Joester Loria Group. The heightened awareness from licensed goods supports the core. For example, Hershey has said 40% of consumers that purchased General Mills’ Reese’s Puffs cereal, were likely to buy Reese’s candy on the same trip.

The Food Factor
“You are seeing a lot more of it (licensing of candy brands) now than you did in the past because of food” co-branding and ingredients deals, says Slifer. “Lifestyle products have always been there and they might be hot when movies and superheroes come into trend. But, with COVID, and entertainment taking a big hit, corporate brands have been able to shine a little more.”

Among other developments in candy-brand licensing:

• Brand Activation Consulting, which signed with Hershey in 2019 and spent much of the past year developing new general merchandise style guides, has added several licensees to the Hershey brand roster. Mad Engine has launched an apparel line (t-shirts), while Bioworld and Odd Sox are readying them. Zuru and Gener8 have signed for toys and HipDot this month introduced Reese’s cosmetics that will be available through May. In food licensing, which Hershey’s handles internally, licensee Mondelez International launched co-branded Chips Ahoy/Reese’s
• Perfetti van Melle, best known for its Chupa Chups, Mentos and Airheads brands, is adding Fruit-tella to its licensing efforts, says Global Licensing Manager Christine Cool. The chewy candy was introduced for the first time in the U.S. in December; Perfetti will hold off on U.S. licensing for Fruit-tella until the brand gets better established with consumers here. First products from a licensing program in Europe, where the brand is well known, are expected by 2022, Cool said. Wildbrain CPLG represents Perfetti in many European countries and Licensing Matters Global was recently appointed to handle Fruit-tella licensing in the UK and Benelux.
• Ferrara Candy is entering licensing for the first time with Joester Loria as it seeks to capitalize of parent Ferrero’s acquisition of nine candy brands from Nestle, including Nerds, Laffy Taffy, BottleCaps, SweeTarts and PixyStix. Ferrero began its expansion into the U.S. when it bought Ferrara in late 2017. The licensing program will likely start with Nerds for apparel. It also will seek to bring Ferrara brands into frozen novelties and drinks and baked goods, says Slifer. Ferrero has 35 brands.
• Lisa Marks Associates is launching a new licensing program for Topps’ bubble gum brand Bazooka this year. The deal was signed as the brand prepared to mark its 75th anniversary next year.