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In a world where brand loyalty is hard-won and even harder to keep, the food and beverage (F&B) sector is increasingly leaning on brand licensing and collaborations to stay relevant, reach new audiences, boost revenues and keep supermarket shelves fresh.
Licensing – when a retailer or manufacturer essentially ‘rents’ the use of a brand to create a specific range of consumer products – is the reason we have Baileys Irish Cream ice cream, Tony the Tiger x Anya Hindmarch handbags and Slush Puppie machines on our kitchen counters. Brand extensions in the F&B space have moved far beyond novelty. Today, they’re big business, smart strategy and – when done right – a powerful way to keep brands front of mind and on the tip of consumers’ tongues.
In 2024, the global licensing industry was valued by trade association Licensing International at $369.6 billion – up 3.7% yoy and outperforming the broader global retail market yet again, reinforcing that trusted brands drive more consumer engagement and inform purchasing decisions.
A dynamic market – with room for more
Magic Light Pictures is home to leading pre-school brands The Gruffalo and Pip & Posy, which they have been licensing into the F&B category for some time. Beanstalk and Pink Key Licensing are leading licensing agencies with several F&B brands under their wings, which they license out to create consumer products in non-F&B categories.
All three organisations know the licensing and F&B markets well – they exhibit at Europe’s leading licensing trade show Brand Licensing Europe, which runs 7-9 October at Excel London. They agree the UK is one of the most advanced markets in Europe for F&B licensing and one of the most competitive.
Richard Pink, MD at Pink Key Licensing, said: “Licensing is highly competitive, but there are opportunities if you can strategically navigate it. Aligning products with the brand’s core values is everything. The closer you get to the heart of what makes the brand special, the more likely you are to be successful."
"Licensing gives F&B brands the opportunity to extend their core values into related products and access different aisles in the supermarket. There are even opportunities for niche brands and trend-based food and beverages, with the bonus of potentially appealing to social media influencers.”
For preschool and family brands, licensing 'in' to F&B categories also makes perfect sense. The Gruffalo’s famous paws have become playful snacks and bakery treats, turning story time favourites into lunchbox delights. It works because food is such an emotive category. So, bringing The Gruffalo to life in food allows the brand to create shared family moments – lunchboxes, picnics, parties – that build a deeper bond with the brand.
The F&B licensing advantage
Character licensing is familiar to us all – Peppa Pig yogurt, for example – but F&B licensing has the added benefit of licensing into its own category driving even more potential creativity. Iconic food brands often license out and licensing agents Beanstalk and Pink Key Licensing have turned this strategy into an art form for clients like Baileys, Guinness, Pringles and more.
Why license? It’s simple: it extends a brand’s reach well beyond its usual retail aisle. For an iconic drinks brand like Baileys, a carefully managed licensing programme means its famous taste shows up everywhere from chocolates and cakes to ice cream tubs and coffee pods.
“Brands like Guinness and Baileys benefit massively from licensing,” said Katie Hall, Beanstalk’s assistant vice president of brand management. “It increases visibility beyond beer, wines and spirits, opening up new retail spaces and consumer moments. It also allows these brands to stay relevant throughout the year, not just in traditional occasions.”
The results speak for themselves. Baileys has turned its long-running collaboration with premium chocolate maker Lir Chocolates into a global hit. Starting with the original Baileys truffle, the range now includes chocolate gift boxes, seasonal specials and even Guinness truffles – an indulgent treat with unmistakable Irish roots.
And the appetite for more is huge. Carte D’Or’s Baileys ice cream, launched in the UK in 2023, quickly became a top winter innovation, selling over 2 million tubs in 2024. Baileys Squirty Cream, meanwhile – a playful twist on an everyday treat – went viral on social media and sold 326,000 units in the lead-up to Christmas 2024 alone.
Guinness is now the number one beer in the UK and Beanstalk has developed a successful licensing programme across categories including sauces, seasonings, meats and even chocolate.
Beyond food: when brand values spark unexpected hits
It’s not only food that’s fair game. With the right partner, food brands can break into categories you’d never expect – while staying true to what makes them special.
“One of our most successful examples is the home-based Slush Puppie maker,” noted Pink. “It was always an obvious winner – it lets families recreate the iconic slushy experience at home.”
But other hits have been more surprising for Pink Key Licensing: Tony the Tiger shower gel, Pringles board games, Kellogg’s cereal collectibles, and even Anya Hindmarch handbags inspired by classic breakfast mascots. These quirky, shareable products keep brands relevant and make them social media friendly, which aligns with today’s consumer desires.
Getting it right: authenticity is everything
While the possibilities are broad, the rule for success is clear: if a licensed product drifts too far from the brand’s core, it risks feeling forced or inauthentic.
“It’s always the first thing we think of,” explained Pink. “Good licensed products are always a combination of design and innovation overlaid on top of the brand’s values; if you move too far away from the core values the product will lose relevance. Our most successful products have been highly innovative, extremely well designed but have always retained the core values of the product.”
Baileys, for example, focuses on 'adult treating' – so its licensed extensions make sense when they’re indulgent, premium and flavour-focused, like ice cream, chocolates or coffee. Likewise, family-friendly characters like The Gruffalo shine when they’re part of fun, safe and trusted formats for children and parents.
The business case: more reach, more shoppers, more moments
The commercial benefits of licensing in or out of the F&B category are clear and go deeper than extra revenue. Firstly, licensed products open up valuable retail space that might otherwise be out of reach. A liqueur brand won’t ever fill the freezer aisle on its own, but a Baileys ice cream tub can. A snack brand like Pringles might never sit in the toy aisle – but Pringles games and collectables put it there.
These moments can attract entirely new audiences. For Baileys, licensing has paid off in droves: one in ten UK households now buys a Baileys licensed product, and 20% of these shoppers don’t buy the drink at all. On Amazon, 62% of buyers for Baileys licensed lines are brand new to the brand. Licensing, in other words, is more than a brand boost - it’s a smart customer recruitment tool.
What’s next for F&B licensing?
If you think the possibilities are exhausted, think again. Both Beanstalk and Pink Key Licensing have busy pipelines. Guinness is doubling down on food extensions with pies, snacks and ice cream. Baileys continues to innovate in indulgent categories - chocolate, coffee, cakes – with global rollouts. And Pink Key Licensing has been signing core manufacturers for the Tiptree confectionary brand.
At Brand Licensing Europe this October, retailers and manufacturers will find Kellogg’s, Pringles, Slush Puppie, Pan Am, The Bel group (including Babybel and Laughing Cow) and Seriously Cheddar, as well as Tiptree on the Pink Key Licensing stand, while Beanstalk will be offering Baileys chocolates and popcorn to all!
Brand Licensing Europe runs 7-9 October at Excel London and is free to attend for food and beverage professionals. Simply register here.
