By Mark Seavy

A growing number of companies are diving into licensing for the first time. These arrivals are companies of all sizes that are not only seeking new revenue, but also to burnish their brands in increasingly crowded markets.

In many cases, this newfound interest in licensing is being driven by executives steeped in the industry.  Whirlpool supplier Jacuzzi Group, for example, had limited experience in licensing in 2020 mbefore hiring Chief Legal Officer Jason Weintraub, who previously was a VP at Taco Bell. Jacuzzi later hired Beanstalk to expand the brand into pool and outdoor products.

Agency LMCA recently signed an agreement to handle licensing for the Revere Ware brand, which is entering licensing for the first time. Full Sail Partners, which is partly owned by LMCA, purchased Revere Ware from bankrupt Instant Brands in 2023.

Retail cooperative Ace Hardware is developing a new licensed product program that is being laid out for its 3,700 dealers. Ace signed licensee American Needle to bring it into apparel that will be sold through Ace stores and potentially those of other chains, according to Michael Massey, a sales representative for American Needle.

Fruit company Chiquita Brands, on the other hand, was a Beanstalk client before stepping away from licensing in 2014 following its sale to fruit supplier Cutrale and global investment firm Safra Group. It hired Joester Loria Group in 2023, however, to shepherd its new licensing program nearly a year after it hired executives attuned to brand licensing and started weighing a return to the business.

“It is revenue-driven, but for the big companies it is a rounding error and may not be their main focus,” said James Slifer, Managing Director of Business Development at Joester Loria. “But it can create awareness in a different part of the store from where they are selling their core products. On the licensee side, especially for newer companies, there’s increasingly an opportunity to partner with a brand that has significantly more awareness and where they might have a tougher time under their own brand.”

This wave of companies looking to enter licensing was in part what spurred the agency Born Licensing to form a separate business, Born to License, with a specific focus on partnering with teams with no experience in the industry. Born has since signed agreements to represent four companies, all of which are seeking deals for their products. Hippo Blue (personalized children’s lunch bags, bento boxes, name labels), Evry Jewels (jewelry) and Fira X Wear (swim suits, apparel) are new to the business. Steven Singer Jewelry, a fixture in Philadelphia retail known for its “I Hate Steven Singer” marketing promotions, recently launched a 24-carat gold flower under a licensing agreement with Cloudco Entertainment’s for its Care Bears brand.

“With social media the expectations are high, and people get bored quickly and want new things all the time,” Born CEO David Born said. “Licensing is one way to offer that. A lot of companies started during the pandemic when they realized they could sell direct to consumers through Tik Tok, Shopify, and other platforms, and they’re looking for ways to continue that business.”

And as a number of businesses are entering the licensing space, some other companies with well-known brands are branching into new categories. For example, golf equipment supplier TaylorMade signed golfer Tiger Woods shortly after he parted ways with Nike and will use the new partnership to enter apparel for the first time.

“There seems to be an uptick in the number of companies that are reaching out and are interested in extending their brands for licensing,” said Linda Morgenstern, VP of Brand Management at Beanstalk. “It’s a combination of trademark protection, expanding into new categories, and creating brand impressions in addition to revenue. And with new demographics entering the market, you have a lot of brands seeking ways to reach that new audience.”