By Mark Seavy 

Specialty food suppliers, once largely home to more niche brands, are expanding their mix of licensing and collaborations as a bulwark against increased competition. 

That effort comes at the same time as many companies are focused on better-for-you foods and ingredients that blend high protein density with added functionality, such as gut health or natural energy, while avoiding artificial additives and allergens. 

The healthier diets have strong appeal among the coveted Millennial and Gen Z consumers and were the subject of debate at the recent Summer Fancy Food Show in New York. Indeed, about 66% of Gen Z and Millennial consumers surveyed are actively trying to consume more protein, said Dan Frommer, Founder and Editor-in Chief of The New Consumer. And that is against 25% of all other age groups with regards to protein, he said. 

“Consumers are returning to what feels real, and seeking out authentic stories, purposeful ingredients, and products that deliver both nourishment and meaning,” said Marc Nehring, Director of Growth Solutions at distributor KeHE. “The 2026 macro trends highlight how personal and values-driven food choices have become.”  

And for the snacks, meals, beverages, and other products being promoted by 2,400 exhibitors at the Fancy Food Event, that authentic storytelling often came from brands. 

Licensed hot cocoa supplier McSteven’s, for example, is shipping The J.M. Smucker Co.’s Hostess brand this year with plans for adding Marquee Brands’ Martha Stewart and Sur La Table labels in 2027, the latter targeting home goods retailers, said Paul Dedominics, National Account Manager at McSteven’s. Martha Stewart’s brand is also on frozen pizza (Turpone Foods) as well as truffle-based pasta sauces and honey (Italian artisanal truffle maker Jimmy Tartufi).  

The Oegg Co., meanwhile, is launched nutrient-dense soft-boiled quail eggs under Toei Animation/Shueisha Inc.’s One Piece brand, initially targeting the China market. And Bon Bon Swedish Candy Co. fielded gummies under The Astrid Lindgren Co.’s Pippi Longstocking and Moomin Characters Oy’s Moomin licensed brands. 

“The licensed brands have worked well because customers may not have heard of us, but they have heard of French’s Mustard and they know what the food should taste like,” said J.T. Sarafa, an executive at Pop Daddy Snacks, which shipped McCormick & Co.’s French’s version in April and has since added The J.M. Smucker Co.’s Jiff peanut butter branded pretzels (May) and Kraft Heinz’s Clausen Dill pickle puffs (June). “I don’t know if these consumers are diehard fans of the brand, but they know what it is and they like it, so they are more comfortable buying the product.” 

Retailers are also looking to brands as a point of difference, with a focus on emerging IPs. 

Walmart, for example, is sharpening its focus on new brands and will launch them either online or in as few as 50 stores, provided they can show a strategy for serving customers and that innovation extends “beyond just your brand story,” said Gabriela Caceres, a Senior Merchandising Manager at Walmart.  

“Many smaller brands feel that coming into Walmart is going to affect their brand equity and that we are going to ask for a very low price, but that is never going to be our goal,” said Caceres in noting the retailer carries premium items like Goodles Macaroni and Cheese, which is priced at $7.90 for a two pack versus $2.78 for a similar package of General Mills’ Annie’s brand. “Our goal is to make sure that the customers have the best price but that doesn’t mean we are going erode the brand equity in the market.” 

And many smaller, independent grocery chains are leaning into collaborations to ward off competition.  

Woodstock Farmers’ Market in Vermont, for example, launched a co-branded “Beer Geek” IPA collab with Rutland Beer Works. It is also introducing a tri-brand combining its label with 5th Quarter Butcher & Provisions’ bratwursts made with Rutland Beer Works’ “Good ‘Ol Days” lager beer.  

“Value means people are getting what they are paying for or exceeding their expectations,” said Amelia Rappaport, a Partner at Woodstock. “We can’t charge the same price as the big chains and our customers go to Walmart, but for very different reasons than when they come to our store. The brands that scale up to Walmart don’t fall into our category, so we have a very different product mix.”