CBS ROYALTIES-MAY09 FINAL2.indd 1
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Volume 4, No. 5
May 2009
Features 20
BY
Jeep Drives Success on an International Stage
NANCY LOMBARDI
32 BY
Art Licensing: Licensor Roundup
PAUL NARULA
30 BY
Beyond the Frame
PAUL NARULA
28 BY
A
CHRIS ADAMS AND NANCY LOMBARDI
26 BY
B RAND I MPACT: DEFINING BRAND IN TODAY’S ECONOMY
Candy Licensing: A History of Sweetness
CHRIS ADAMS
Departments
OBSERVATIONS & OPINIONS
PAGE
6
THE TICKER
PAGE
8
REAL DEAL
PAGE
10
ON
PAGE
12
PAGE
14
PAGE
16
JUSTIN WATSON
PAGE
18
YOU’RE HIRED!
PAGE
36
ROYALTIE$ CHALLENGE
PAGE
37
CALENDAR
PAGE
38
PAGE
39
THE
ESSENCE
RADAR OF
STYLE
ROYALTIE$ MARKETPLACE: PAUL FRANK INDUSTRIES MAVERICKS
IN THE
OF
MARKET:
EVENTS
ENDCAP
ON THIS PAGE: M&M’s earbuds by Maxell and NASCAR Thunder, the new painting from Thomas Kinkade, which is in commemoration of the 50th running of the Daytona 500 NASCAR racing event
34 BY
Candy Licensing: Licensor Roundup
CHRIS ADAMS
ON THE COVER: Products from the happi by Dena brand, from Dena Designs, which was created with uplifting imagery and colors to appeal to consumers in bleak economic times.
COVER BY DESIGN EDGE
R CTO E R DI D ND A AN THE Z M Z Z O Z U FR FU D...... A AD T F
Scott Pilgrim vs. The World Movie © Universal Studios. Licensed by Universal Studios Licensing LLLP. All Rights Reserved.
E OT DE HO E ED FH H H O OF T T F O OF N N ON U U A A H CTI S A SH ON IVE A L OTI M OR ROM E F MAJ TUR
PIC
L
SA R E V
UNI TURES IC P
S RS ER T TE A A E E H TH NT I IN
0 1 0 2 DA : 818-777-2067 LICENSING IN U.S. & CANA 7-5694 INTERNATIONAL: 818-77 716 RETAIL : 818-777-6 789 PROMOTIONS : 818-777-5
PUBLISHED www.anb-media.com BY ANB MEDIA • Volume 3, Number 8
A
PUBLISHER ANDY KRINNER ANDY@ANBMEDIA.COM
by Andy Krinner
A TALE OF TWO TRADE SHOWS? s of press time, we are one month away from Licensing International
Expo
(better
known as Licensing Show), our industry’s premier trade show, and there seems
to be more questions than ever with regard to show management’s decision to
move the show to Las Vegas’s Mandalay
Bay Convention Center. Just weeks before the show’s opening day, exhibitors, including aNb Media, were notified that management changed the layout of the floor plan by moving the entire show to one level rather than the two-level plan
that was the original layout. I’m sure this
was a move to ensure more efficient traffic patterns for the attendees. Unfortu-
nately, some exhibitors had their booths custom made to spec, and the reshuffling is causing major angst.
I feel confident that this will be all
worked out before we leave for Las
Vegas. But things like this will only reinforce the notion that the show wasn’t broken and, therefore, didn’t need to be fixed.
While economic woes can account for many issues that the show may face, these
types of last-minute changes are not going
to sit well with people who are looking for more reasons not to like the Las Vegas
venue for June’s Licensing Show. In a previous editorial I preached patience and
understanding with the move out West,
but it doesn’t seem to be getting any eas-
6
ROYALTIE$ MAY 2009
ier to practice the suggestions.
While our industry’s flagship show
continues to iron out the inevitable wrinkles that come along with a move to a
new show venue, there is another licensing trade show on the horizon that
continues to gain interest from what I
can only imagine amounts to the licensing companies that were vehemently against the show moving out of New
York City. I have spoken to the director
of the proposed show, called THE Licensing Event, and she claims to have at
least 50 interested exhibitors casually committed, although she would not
mention any by name. This show seems
to be contingent upon the outcome of Licensing Show in June. While plans and
confirmations seem to be a little vague—let alone the idea that this show
can be pulled off in April, as is
planned—the show does warrant a
closer look. We plan to dive deeper into this story next month when our editorial team gets a chance to find more answers about this proposed upstart event.
Best of luck to the 2009 LIMA Licens-
ing Excellence Award nominees. In the past year there were some pretty terrific programs that managed to buck the weak economic tide. I’m sure there will be a lot to celebrate at the LIMA Awards party— see you there.
ASSOCIATE PUBLISHER BOB GLASER BOB@ANBMEDIA.COM ADVERTISING MANAGER AMY LAND AMY@ANBMEDIA.COM CONTROLLER MARY GROGAN MARY@ANBMEDIA.COM EDITOR IN CHIEF JIM SILVER JIM@ANBMEDIA.COM EDITORIAL DIRECTOR NANCY LOMBARDI NANCY@ANBMEDIA.COM MANAGING EDITOR CHRIS ADAMS CHRISA@ANBMEDIA.COM EDITOR AT LARGE CHRISTOPHER BYRNE CHRISB@ANBMEDIA.COM ASSISTANT EDITOR LAURIE HAHN LAURIE@ANBMEDIA.COM ASSISTANT EDITOR PAUL NARULA PAUL@ANBMEDIA.COM WEB MASTER ERIK KIECKHAFER ERIK@ANBMEDIA.COM WEB CONTENT MANAGER BRENDAN SANABRIA BRENDAN@ANBMEDIA.COM CONTRIBUTOR MATT NUCCIO MATT@DESIGNEDGE.NET HONG KONG REPRESENTATIVE TONY LEE SMART REGENT PRODUCTIONS LTD., 66–72 STANLEY STREET, ROOM 603, KAI TAK COMMERCIAL BUILDING, CENTRAL HONG KONG PHONE: 2815 0166 • FAX: 2815 6911 • SREGENT@NETVIGATOR.COM
PUBLIC RELATIONS REPRESENTATIVE JOSSLYNNE WELCH LITZKY PUBLIC RELATIONS, 320 SINATRA DR., HOBOKEN, N.J. 07030 (201) 222–9118 EXT. 13 • JWELCH@LITZKYPR.COM
INTERESTED IN A SUBSCRIPTION? CONTACT SUBSCRIPTIONS@ANBMEDIA.COM ANB
MEDIA, INC.
229 WEST 28TH STREET, SUITE 401, NEW YORK, NY 10001 PHONE: (646) 763–8710 • FAX: (646) 763–8727
ROYALTIE$ is published 12 times a year by aNb Media, Inc. Copyright 2009 aNb Media, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without written permission from the publisher. Printed in the U.S.A. ROYALTIE$ is a registered trademark of aNb Media, Inc. Opinions and comments expressed in this publication by editors, contributing writers, or solicited or unsolicited documents are not necessarily those of ROYALTIE$ management.
CELEBRATING 10 YEARS OF HAPPY! A FLOOD OF FANS • Most watched Kids cartoon ever • Over 72 million monthly viewers • #1 animated program on all of TV 8 years in a row, among K2-11 and 6-11* *Nielsen: 7/17/99-12/31/08
NICK’S BIGGEST CELEBRATION EVER • $100 million in marketing and promotions including: - Ultimate Fansite: www.spongebob.com (January) - Three major TV events (April, July, November) - Two QSRs (April, November) - SpongeBob Documentary (July) - Global Day of Happiness celebrating SpongeBob’s 10th Anniversary (July) • All new product lines, first-ever co-brands, innovative partnerships and re-imagined art styles • National sweepstakes promotion on over 15 million products
For International licensing information contact:
For US licensing and retail information contact:
Jill Tully VP, International Consumer Products Jill.Tully@nick.com
Shaun Turner VP, Retail Development Shaun.Turner@nick.com
Kristi Wasmer VP, Retail Development Kristi.Wasmer@nick.com
©2009 Viacom International Inc. All Rights Reserved. SpongeBob SquarePants created by Stephen Hillenburg.
SB_TradeAd.RoyaltiesMag.rev.indd 1
4/22/09 5:46:19 PM
A RECAP
OF
INDUSTRY HEADLINES
LIMA ANNOUNCES 2009 EXCELLENCE AWARD NOMINEES
The International Licensing Industry Merchandisers’ Association (LIMA) announced the nominees for the annual LIMA International Licensing Excellence Awards. Sixteen awards will be presented in seven categories at LIMA’s Opening Night Awards Party on June 2 at the Mandalay Bay Convention Center in Las Vegas during Licensing International Expo. Key category nominees include: Best Character Brand Program of the Year: Cabbage Patch Kids (Original Appalachian Artworks, Inc./4Kids Entertainment), Disney Fairies (The Walt Disney Company), Fancy Nancy (HarperCollins/United Media Licensing), Hello Kitty (Sanrio, Inc.), and Supergirl (Warner Bros. Consumer Products); Best Corporate Brand Program of the Year: Jeep Consumer Products (Chrysler LLC/The Joester Loria Group), Jim Beam Brand (Beam Global Spirits and Wine/The Licensing Company), Mustang (Ford Motor Company/The Beanstalk Group, LLC), and USA Today (USA Today/Nancy Bailey & Associates, Inc.); Best Retailer of the Year: Hot Topic (Twilight), Kmart (The Dark Knight), Safeway (Looney Tunes), Toys “R” Us (Star Wars), and Wal-Mart (Hannah Montana); and Overall Best Licensed Program of the Year: The Andy Warhol Global Licensing Program (The Andy Warhol Foundation for the Visual Arts, Inc.), Bakugan (Nelvana Enterprises/Cartoon Network Enterprises), Beijing 2008 Olympic Games (IOC/The Beijing Organizing Committee for the Games of the XXIX Olympiad), The Dark Knight (Warner Bros. Consumer Products), Hello Kitty (Sanrio, Inc.), Jeep Consumer Products (Chrysler LLC/The Joester Loria Group), and Major League Baseball (Major League Baseball). For more infomation on the 2009 LIMA International Licensing Excellence Awards, visit www.licensing.org.
POKÉMON UNIFIES OPERATIONS
Reflecting the growth and synergy of its international businesses and a more unified approach to its future, Pokémon USA, Inc., with offices in Seattle and New York, and Pokémon UK, with an office in London, are being joined together under the name The Pokémon Company International. The name change will have no outward effect on business practices. The Pokémon business outside of Asia will continue to be managed by Kenji Okubo, president of The Pokémon Company International, who oversees the company’s operations in Seattle, New York, and London, and reports to the worldwide headquarters in Japan.
8
ROYALTIE$ MAY 2009
HELLO KITTY ROLLS OUT 35TH ANNIVERSARY PLANS
Sanrio has announced preliminary plans to celebrate the 35th anniversary of Hello Kitty. The worldwide theme of the celebration is “Hello Kitty Colors,” which conveys the essence of Hello Kitty, with red for friendship, pink for cute, yellow for heartful, green for wish, and lavender for sweet. The message of each color will be reflected on her bow. Stores around the world will carry 35th anniversary-themed merchandise beginning in September. A U.S. website for the 35th anniversary will be introduced in June to provide information on product launches, activities, and events. Closer to November 1, the exact anniversary date, Sanrio will host a bi-coastal gallery exhibition in the U.S. featuring Hello Kitty products of the past, present, and future, along with artists’ interpretations of Hello Kitty. Plans are also in the works to tie in the celebrations with national and local charities.
DIMENSIONAL BRANDING GROUP FORMS NEW DIVISION
Dimensional Branding Group (DBG) announced that it has formed a mergers and acquisitions advisory division within DBG called Dimensional Branding Advisors (DBA). DBA brings toy industry acumen, a team of licensing industry experts, and an active network of buyers and sellers to its clients. BA plans to counter the traditional mergers and acquisitions process and model that has typically been managed by investment bankers and various non-toy industry experienced professionals. According to DBA, understanding play patterns, current retail and industry market conditions, and intellectual property value are the intangibles for successful transactions.
SHOUT! FACTORY AND HASBRO ANNOUNCE DEAL
Shout! Factory and Hasbro, Inc., announced a multi-year, multi-property alliance to bring the original animated TV series The Transformers and G.I. JOE: A Real American Hero animated series, along with My Little Pony Twinkle Wish Adventure to the home entertainment marketplace. Under the multi-year agreement, Shout! Factory will be the exclusive U.S. and Canada home entertainment distributor for the direct-to-DVD releases. Shout! Factory plans an aggressive rollout of these Hasbro titles later this year.
ROYALTIE$ MAY 2009
9
DR. SEUSS ENTERPRISES AND VARIOUS LICENSEES
Dr. Seuss Enterprises has signed a number of new licensees for the Dr. Seuss brand. Junk Food Clothing will create a line of apparel for juniors. Kidthing, an internet service for kids, has created 10 titles for a content distribution partnership that introduces digital read-along versions of the Dr. Seuss books. Available titles include The Cat in the Hat, Green Eggs and Ham, and more, as well as games and activities. Finally, Baby Togs has signed on to create childrenswear in all categories of apparel.
STONE AMERICA LICENSING AND MULTIPLE LICENSEES
Stone America Licensing has expanded a number of its clients’ licensing programs. Andy Capp has been licensed to Brand Integrated Games for scratch-off instant-win tickets, pull-tab tickets, and combination scratch-off win and pull-tab tickets in the U.S. Discovery Bay Games has been granted the Oxford University license for board games, card games, and puzzles in metal, wood, and paper cardboard in the U.S. Finally, the Norman Rockwell license has been granted to Houston Salem, Inc., dba Chaser Merchandise for T-shirts, sweatshirts, stickers, postcards, posters, key chains, magnets, lunch boxes, tote bags, buttons, and hats.
WARNER BROS. CONSUMER PRODUCTS AND LENDERS ONE
Warner Bros. Consumer Products (WBCP) has signed an agreement with Lenders One to allow the national alliance of mortgage bankers to use videos, still images, and audio material from the film The Wizard of Oz in a national promotional campaign. The cooperative of bankers and banks is leveraging a variety of print, broadcast, web, and other materials to build a continuous message and extend the reach of each member in its respective community using the iconic and classic imagery from The Wizard of Oz to promote their services and increase their presence.
SONY COMPUTER ENTERTAINMENT EUROPE AND TARGET ENTERTAINMENT
Sony Computer Entertainment Europe (SCEE) and Target Entertainment Group have signed a deal that places Target Entertainment Group as the consumer product licensing agent for PlayStation software IPs. Target Entertainment Group will operate across Europe and Australia on all consumer products, excluding PlayStation Sackboy, from Sony’s Little Big Planet peripherals and PlayStation-specific accessories. The company will develop the brand in categories such as apparel, accessories, toys, plush, stationery, gifts, housewares, food, and extra promotions.
CHAPMAN ENTERTAINMENT MOVES LICENSING IN-HOUSE
Target Entertainment Group has announced that it has come to the end of its partnership agreement with Chapman Entertainment for the licensing rights to Fifi and the Flowertots. The rights will revert back to Chapman Entertainment this month, though Target will continue to represent the property for international TV sales. Chapman will be moving its licensing programs in-house and start promoting its properties cross-category with its own internal licensing division.
10
ROYALTIE$ MAY 2009
New products, new deals, and new trends this month in the licensing industry. LEA
AND
NICK
FOR
KID FURNITURE
Lea Industries (a division of La-Z-Boy) announced that it has entered into a licensing agreement with Nickelodeon/Viacom Consumer Products (NVCP) to develop youth furniture featuring characters from Dora the Explorer; Go, Diego, Go!; SpongeBob SquarePants; The Wonder Pets!; and iCarly, as well as designs based on the network’s signature Slime. The licensing agreement includes children’s and teens’ bedroom furniture, home office, bureaus, display cases, armoires, and entertainment systems. The line will be shown to the trade at the October High Point Market. The items are expected to be at retail in January 2010. The three lines are in development. Nick Jr., which will be designed for ages 3–7, focuses on Dora and Diego and will also include classic images from SpongeBob SquarePants. Nick, which will focus on ages 7–11, will concentrate primarily on the Splat logo, which represents an irreverent and kid-like spirit. This line will be complemented with more stylized and silhouetted SpongeBob SquarePants graphics. TEENick, which will focus on the tween/teen market, will offer more sophisticated and contemporary gathering places for kids.
CBS
AND
RWS PARTNER
FOR
DISCOVERY AND SEASONS USA
Discovery Communications has signed Seasons USA to produce a line of Halloween costumes and accessories for the TV series, L.A. Ink. Seasons’ product line will include tattoo sleeves, costumes, and stockings, all encompassing the L.A. Ink artwork.
SURVIVOR LIVE
CBS Consumer Products and RWS & Associates Entertainment, Inc., have teamed up to create a live, interactive stage show inspired by the TV series Survivor. The stage show called Survivor: Live will put guests’ minds and bodies to the ultimate test as audience members compete in contests designed to test their endurance, memory, and strength. Survivor: Live will make its debut this month at Elitch Gardens in Denver and Frontier City in Oklahoma City. A third venue will open later this month at Darien Lake Theme Park Resort in Darien Center, N.Y. All three shows will run through the end of the summer and are free to guests of the parks that are hosting the event. Each show will take place on a custom-designed stage transporting contestants, and the live audience, to far-away lands using clips from the television series that will play on a big screen. The live show audience will be divided into four tribes to take part in the competition, while actors portraying previous contestants on the show will help competitors through a series of four challenges.
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ROYALTIE$ MAY 2009
JEWEL BRANDING & LICENSING SIGNS ARTIST ROBIN PICKENS
Jewel Branding & Licensing announced that it is now representing artist Robin Pickens for product licensing and brand development. Known for her linear art style, Pickens currently has licensees for greeting cards, stationery, and publishing. Prior to launching the Robin Pickens brand, Pickens ran design and graphics for Telepictures Productions, a division of Time Warner. She created graphic packages for a wide range of TV series for celebrities such as Ellen, Sharon Osborne, and Rosie O’Donnell. She continues to design show looks for E! Entertainment and Style Networks. Jewel Branding & Licensing, launched by Julie Newman in 2008, is working with potential licensees for the Robin Pickens brand in social stationery, home décor, and crafts. Newman worked with Creative Brands Group for six years where she worked with a variety of brands including Kitson, Life magazine, Thomas Kinkade, and Heidi Klum.
CIRCUS-THEMED VIDEO GAMES
Feld Entertainment announced that its Ringling Bros. and Barnum & Bailey show has just signed a deal with 2K Play, a publishing label of Take-Two Interactive Software, Inc. The two will develop circus-themed video games. For the first time in the near 140-year history of Ringling Bros., the brand will be coming to the Nintendo’s Wii home video game system as well as Nintendo DS. The Ringling Bros.-themed games are scheduled to ship for this holiday season as 2K Play further extends its portfolio of family-friendly video game offerings. During a recent Ringling Bros. performance in New York’s Madison Square Garden, and in celebration of this partnership with 2K Play, a Ringling Bros. high-wire artist took to the air and made a 25-foot walk across a tightrope while maintaining his balance with only a Wii Remote and Nunchuk in his hands (shown). COP Corp brokered the deal on behalf of Feld Entertainment’s Ringling Bros. The game will be available at the 2009 E3 Expo in Los Angeles next month.
ROYALTIE$ MAY 2009
13
Trash Becomes Treasure
Fashion brand Trash & Luxury partnered with White Trash Charms for a limited-edition jewelry collection, set to debut this month. The collection combines Trash & Luxury’s idea of casual glamour with White Trash Charms’ fundamentals of design for a cohesively fierce collection of necklaces, earrings, bracelets, and barrettes. This is the first accessory collaboration for Trash & Luxury and White Trash Charms’ first time experimenting with materials such as acrylic, resin, enamel, rhinestones, feathers, and beads. Trash & Luxury for White Trash Charms will be available at boutiques such as Kitson, better department stores, and online at www.whitetrashcharms.com.
Kids Lace Up With iCarly
Nickelodeon and Stride Rite teamed up the iCarly with Stride Rite’s Keds Kids brand to create L8R style an iCarly fashion line for girls. The three girls’ styles are named after iCarly’s digital hooks used throughout the show. L8R is a lace athletic with charms girls can use to create their own expressions. ASAP is a surfer-inspired canvas slipon. TTYL is a Mary-Jane athletic with retro phrases printed on a sparkle canvas upper. Each style has a colorful and comfortable foot bed with an iCarly image and retro graphics. The new iCarly Collection for Keds Kids retails for $35 and comes in sizes toddler 7 to big girl size 6. The shoes are expected to hit Stride Rite stores and other Stride Rite retailers next month.
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ROYALTIE$ MAY 2009
Nike Teams With Paule Marrot Editions
For its upcoming summer collection, Nike Sportswear collaborated with legendary French textile designer Paule Marrot Editions. Once loved by the British royal family and Jackie Kennedy, Paule Marrot Editions has been creating memorable designs since 1920. Nike Sportswear’s footwear designers integrated Paule Marrot’s “Aurore” to inspire the Butterflies and Feathers prints on the new Skinny Dunks, and the “Les Cerises” print in two colors with cherries on the shoes.
Fisher-Price Apparel at Kmart
Fisher-Price Consumer Products introduced a new line of licensed children’s apparel by Mayfair, a Tawil Associates company, at Kmart. The line, which launched in April, is geared toward babies and toddlers. These new fashions, for sizes 12 months through 5T, include bright colors in durable fabrics featuring artwork of popular classic Fisher-Price toys like the Chatter Telephone and Buzzy Bee products. The spring collection includes 16 styles of tops and bottoms, with an additional 32 styles to be introduced this fall. Prices range from $10.99–$16.99. The addition of Fisher-Price children’s apparel at Kmart follows the introduction of the Fisher-Price footwear collection by Brown Shoe Company, Inc., maker of Buster Brown children’s shoes, in February.
P
PAUL FRANK INDUSTRIES by Paul Narula
aul Frank Industries’ story began in and Julius and his friends occupy a housing 1995 with a group of friends in a development called Planned Pines. These garage in Southern California, hand- characters form the crux of the Paul Frank lisewing wallets out of Naugahyde and adorn- censing program. ing them with whimsical characters they This year, Paul Frank has more than 50 licalled Julius and Skurvy. Among those censees that will be introducing new prodfriends was Ryan Heuser, now president of ucts into the market. Branded products are Paul Frank Industries. The company, which supported not only through licensing initiawas incorporated in 1997, started as an ac- tives, but through the line of Paul Frank Store cessory company, selling wallets and other retail locations in 34 cities worldwide. The products that bore the company has inimagery of what creased its brand exwould become Paul posure by initiating Frank’s key characcollaborations with ters, such as Julius other major brands the Monkey. Paul and licensors, such as Frank Industries has LEGO, Mattel, John expanded further, proDeere, Oscar Meyer, ducing apparel for Dr. Scholl’s, The adults and children as Elvis Presley Founwell as sportswear. dation, and more. Throughout every Paul Frank IndusPaul Frank cast of characters line of Paul Frank tries will be focused merchandise are images of the Paul Frank on introducing the brand to new categories, characters. Julius the Monkey was the first such as school accessories, toys, stationery, of these characters and the most recognized fragrance/cosmetics, jewelry, and interactive symbol of the Paul Frank brand. Nowadays, media. Chronicle Books will continue to exthe Paul Frank cast of characters has ex- pand its line of books. Bugaboo has signed panded to feature more than 200 individual on as a licensee for strollers, and F.A.B./Starcharacters, each of whom lives in the imagi- point has signed on as a licensee for stanary land of Lucky Bluff. Lucky Bluff fea- tionery and bags. Other licensees include tures an historic downtown shopping district, Kids Headquarters (infant, toddler, and youth pancake house, research facility, mysterious apparel), Creata (iPod accessories), and Bell forest, city diner, and boardwalk funzone, Sports (bike accessories).
16
ROYALTIE$ MAY 2009
Fast Facts ° The average age of the employees at Paul Frank Industries is 27.
° Paul Frank still tries to use its original production material, Naugahyde (a synthetic leather product), on many of its products.
° Paul Frank has an established presence on social networking sites such as Facebook and media sites such as YouTube.
° Paul Frank products have appeared in a number of films, including Superbad, Knocked Up, American Pie, Austin Powers, Charlie’s Angels, and Speed Racer.
° Paul Frank has designed guitar straps for the White Stripes, Foo Fighers, and Weezer.
BUGABOO
Bugaboo’s Cameleon stroller can now be dressed with one of the tailored fabric sets, footmuffs, or blankets featuring the signature Paul Frank characters Skurvy, Clancy, or Julius. The collection is available online or at Bugaboo retail locations.
CHRONICLE BOOKS
Chronicle Books has released two children’s books for Paul Frank, featuring Julius—Only In Dreams and Wild West Bananza. Chronicle has also released the Julius Growth Chart and Julius Matching Game.
BELL SPORTS
Bell Sports designed a full line of bicycle accessories for the Paul Frank brand. The line will include helmets, pad sets, gloves, water bottles, nameplates, bike streamers, spoke/wheel decorations, locks, and scooters. Characters will include Julius, Aku, and Skurvy.
KIDS HEADQUARTERS
Paul Frank has signed a domestic licensing agreement with Kids Headquarters for the Small Paul baby and toddler and Paul Frank youth product lines. Both lines will feature Julius and other Paul Frank characters on the clothing.
F.A.B./STARPOINT
F.A.B./Starpoint will handle a wide range of back-to-school stationery and accessories, as well as a range of fashion accessories. It will also be producing the signature Paul Frank wallets.
ROYALTIE$ MAY 2009
17
FASHION INTERNATIONAL
I
by Paul Narula
t is a fact of the licensing business that keting support and creative support to let just because a brand is strong and popu- them connect all the dots to help find them lar in one part of the the right licensing partners,” world doesn’t mean it will says Watson. be strong everywhere else. Before founding BAM “There are really great Brands, Watson worked for brands that may be really Mighty Fine as marketing direcwell known in their own tor. Mighty Fine worked as both country, but don’t translate a licensor and licensee. The out internationally,” says company produced apparel and Justin Watson, founder and products bearing other compamanaging director of BAM nies’ properties but also licensed Brands, which is based in its own in-house properties to Australia. Sometimes, it other companies for product can be attributed to culturdevelopment. When Watson left al differences. But oftenlast year to found his own comtimes, the more likely rea- BAM will expand the French Kitty pany, Mighty Fine was one of brand across Europe and son is that a given compahis first clients. He feels his other territories. ny simply may not know position at Mighty Fine and the how to expand beyond its borders. That’s projects he worked on while there, which where Justin Watson steps in. included working on the company’s own BAM stands for “Brick & Mortar,” licensing programs, have let him develop which Watson uses to illustrate what he additional talents that he can use at BAM. He feels is the most important part of building had a hand in art direction, product developa brand. “You need to have really solid ment, and managing a brand’s growth from ground before you can start building,” he inception to execution. “I feel like I have a says. BAM, which will focus mainly on unique balance of creativity and business in fashion brands, as this is the category that my roots,” says Watson. Watson is most familiar with, will work That balance has been what allows Watson with companies that have created a solid to manage BAM Brands’ business in a unique marketing program in their native coun- way. “Our business model is a hybrid of distritries, but don’t have the means or the meth- bution and licensing,” says Watson. ods to move into new markets. The goal of Sometimes, all a property needs is to find the BAM is to provide licensors with the “mar- right distributor in the target area to begin get-
18
ROYALTIE$ MAY 2009
ting product into the market. BAM Brands can do that. But sometimes a company needs specific creative direction or marketing plans, and BAM can do that as well. “We combine the creative development with the marketing development,” says Watson. “We invest time in the creative materials and marketing materials that go all throughout the process.” In this way, Watson believes that BAM forms a closer bond with the product and the licensor, and is thus able to sell better than other companies. Watson has big plans for BAM. “I want to develop BAM into a go-to company for fashion brands that want to develop into Asia, Australia, and North America,” he says. The company is continuing to work on adding new brands to its roster and has been expanding Mighty Fine’s brands across Europe as well as other regions. The company has collaborated with White Trash Charms for a jewelry collection based on its Trash & Luxury Mighty Fine brand. The French Kitty brand will expand further into the U.S. market and has already renewed the marketing agreements with department stores in Japan. The company also has a number of new potential deals in the works that Watson was unable to elaborate on at this time. Watson also plans to grow the company beyond its current focus. “I would love to see BAM diversify into other segments of the media and perhaps even begin distributing our own products,” he says. And just as he would for any one of his clients, Watson has given BAM a solid foundation to work with.
DEFINING
A
BRAND
IN
TODAY’S ECONOMY
by Chris Adams and Nancy Lombardi
A
s the economy continues to suffer the effects of the global recession, even the savviest of marketers are facing increasing challenges not only getting products on shelves, but also convincing consumers that the products offer an overwhelming quality-to-value ratio to earn consumers’ hard-earned dollars. The licensing industry is
at the crossroads of this battle as the media increasingly reports that consumers are turning to store brands in record numbers. While this climate does pose a difficult situation for licensors, it is not all doom and gloom. Opportunities can be had for those who know how to find pockets of opportunity for strong brands. Even though it may be counter-intuitive, the economy is creating some opportunities for hard-hit consumers who find comfort in brands that have well-established reputations of delivering quality, value, and comfort. Those that stay the course may win the battle against the store brand competition. ROYALTIE$ has spoken with numerous licensing executives discussing how to find opportunity amid chaos and how the recession may influence consumers’ psyches in the long run. Key responses are presented here. MICHELLE MINIERI, PRESIDENT, BRADFORD LICENSING: Keeping a brand relevant in these times is critical to the longevity of the overall licensing program. Those brands that can be cut out are lacking in strong advantages for the buyers, therefore keeping benefits top of mind for the consumer is vital. At the end of the day, a consumer is looking for a quality product at a reasonable price point—keeping these points in mind when developing a brand and its products will ensure its longevity in the marketplace. KAREN DIAMOND, PRINCIPAL, SYNERGY LICENSING: Consumers are savvy and will continue to be discerning in all areas of purchasing. Flamboyant days and reckless spending or investing are over. Luxury brand owners need to be able to meet the needs of their customers in a way that their customers are going to feel good about their purchases. Understatement is in. In these economic times it is important for brands to recognize and communicate to their customers that they understand and are responding to their customers’ needs. Brand owners and licensors need to understand precisely what the brand delivers and offer value to their customers. DEBRA JOESTER, PRESIDENT, THE JOESTER LORIA GROUP: A brand is a collection of emotional and functional attributes that strongly influences purchase. Consumers’ financial inability to make a purchase does not compromise the value of a brand. As long as consumers accept the brand’s value and trust
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ROYALTIE$ MAY 2009
IMC’s the brand will deliver on its promChiquitaise—be it performance, quality, price, status, or purpose— branded smoothies, they will continue to buy into the brand when they can. from Old On the other hand, private label products are eroding Orchard branded product sales, especially in commodity categories, Brands and are likely to continue to do so. If brands fail to deliver superior products, performance, innovation, and aesthetics in product design and packaging, consumers will have a hard time justifying higher price points as compared to private label.
BILL CROSS, EXECUTIVE VICE-PRESIDENT, BROAD STREET LICENSING GROUP: The pressure on national brands will continue with private label purchases currently around 25 percent and up to 90 percent in discount retail channels, especially in Europe. Too many brand names have rested on their laurels while retailers have quietly shifted the perception of private label products from “no-name” and “cheap” to “value” and even “innovative.” And given the high cost of developing and deploying name brand lines, private label products may become engines of innovation since they require fewer developmental costs, bring a higher return to retail, and need smaller success thresholds. CARA BERNOSKY, PRESIDENT, IMC LICENSING: This economic shift has given everyone a wake-up call and forced a dialog that was, quite frankly, long
different when, and if, it returns. The whole world is learning new ways of doing things—or not doing things—eating at home versus eating out is a classic example. Consumers may well discover the delights of entertaining at home and make this a trend for the future.
overdue. Instead of resting on their laurels, brands are forced to really think about what they are delivering to consumers and how to combat the increase in private label sales. At the same time, however, the growth of private label brands has ironically given brands yet another arena in which to play. While retailers are looking to make their doors a go-to destination, they are increasingly turning to brand exclusives to accomplish that. Whether it is Kohl’s prolific use of exclusive licenses including Simply Vera Wang, Daisy Fuentes, and Food Network, among others, or Kroger’s attempt with the Disney Magic Selections line, or Office Depot with the Sharper Image line, retailers are employing licensed brands as their private label offerings. Conversely, some private label brands are becoming so strong that they are proving to have legs outside their original retail home. For example, Safeway’s O Organics line has become the biggest organic brand in the country and is available to other retailers outside of the Safeway family.
RAMEZ TOUBASSY, PRESIDENT, BRAND SENSE PARTNERS: As the market continues to deteriorate and the recession drags on, everyone will be yearning for the good old days. The days of conspicuous consumption may be gone for a while, but, if brands are sensitive to the more subdued and less flashy mindset of consumers, the consumer brands that have been abandoned during the recession should be able to pick up right where they left off. Brands need to make sure that they have their finger on the pulse of a less ostentatious, more value-oriented consumer when they design and market their products, but if they do that they should be in phenomenal shape to regain market share and be successful once more.
ANGELA FARRUGIA, GROUP MANAGING DIRECTOR, THE LICENSING COMPANY: This is a time when trailing alternatives are at a peak, so brand loyalties will be made and lost quickly. Customers will only return if those brands they abandoned have truly evolved and are speaking the same language as consumers. Shopping habits in the U.S. have changed forever. Decadence will be
While it may seem that the economy is in the midst of a long, hard struggle, brand licensors are already positioning themselves for the eventual rebound of the economy. The question is not if there is a light at the end of the tunnel, but how far off that light is and what types of opportunities will exist in the interim.
It’s been proven that consumers gravitate toward trusted brands, which is why licensed products have always performed well across so many diverse categories. In years past it has always been easier to enter a new category with a new product as long as a well-known name was attached. Yet this current recession has been unlike any other and is throwing many of these long-held beliefs out the window. While some consumers are trading in trust for less expensive store brands, licensors are holding strong that once the economy bottoms out, consumers will return to their previous habits. In the meantime, it hasn’t stopped companies from introducing new licensed products. In many ways, it is making licensors work that much harder to be even more creative for the brands they represent. One example of this is shown above on the left. Discovery Student Adventures (from Discovery and World Adventures Unlimited and brokered by The Joester Loria Group) is offering licensed student vacations. Tapping into youth travel is one way to extend the Discovery name. Shown above on the right are Burger King-flavored chips from The Inventure Group, brokered by Broad Street Licensing Group.
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ROYALTIE$ MAY 2009
Synergy Saves the Earth The Save the Earth Foundation has signed an exclusive agreement with Synergy Licensing to represent the Save the Earth logo and trademarks across all product categories and retail sectors. The Save the Earth logo has personified the eco-friendly movement since 1972, according to Synergy.
I’ll Drink to That Old Orchard Brands signed a licensing agreement with Chiquita to produce frozen fruit smoothie concentrates. The deal was brokered by IMC Licensing, which represents Chiquita. The Chiquita Frozen Fruit Smoothies are now available in recyclable 12-ounce plastic cans, which provide three, eight-ounce servings when blended with ice and water. These are all-natural products with each serving containing at least half of a cup of fruit and 100 percent of the recommended dietary allowance of Vitamin C. The line includes popular flavors such as Strawberry Banana, Banana Colada, Peach Mango, and Mixed Berry. A national consumer campaign began on April 1, which is supported by a nationwide advertising campaign that includes broadcast television, radio, and print ads, as well as free-standing coupon inserts placed within the top 100 U.S. newspapers. In-store merchandising includes floor graphics, shelf signage, and a variety of sampling events.
A Quickie Clean-Up The Licensing Company announced the launch of Reckitt Benckiser’s Lysol-branded cleaning tool collection. Available in stores now through a partnership with Quickie Manufacturing Corporation, this collection is multi-functional. The line is treated with antimicrobial protection to capitalize on the antimicrobial trend from last year and yet appeals to a healthier consumer who demands feature-packed cleaning tools that yield a safe result. This line is developed from the ground up featuring a triangular-shaped handle that has integral rails of non-slip grip, which allows the user to hold and control even with wet hands. Pivoting scrub brushes adjust 360 degrees to perform in the toughest conditions. They allow for fast, efficient scrubbing of grout lines and messes other tools cannot. Other products include microfiber sponges, contoured brushes, flexi-brushes that clean virtually anything, and multi-purpose tools that serve a variety of needs.
ps se Po n e S Brand Brand Sense Partners (BSP) has hired John Moore and his team of designers, merchants, and artists at The POP Studio. “POP” stands for “Pencil on Paper,” the blank canvas from which every new creative venture begins. Moore serves as president and creative director of The POP Studio as well as chief creative officer of BSP. The POP Studio will operate as a Brand Sense portfolio company. It will deliver full-service creative direction with a focus on brand image, product design, and retail environments in the fashion and apparel industries. Moore made his first major footprint on the fashion industry with Abercrombie & Fitch. In 1999 he was chosen to create the third concept for A&F. Moore conceptualized the brand identity and store concept, directed clothing and graphic design, and named it Hollister Co. He quickly rose up the corporate ranks to global conceptual director of all businesses at A&F. The POP Studio is currently engaged in several key projects including providing lead creative direction for the turnaround of Mexx, a Liz Claiborne brand, as well as developing a lifestyle, fitness apparel concept for Shape Magazine. There are seven additional creative members at The POP Studio based in Culver City, Calif., with collective experience that includes Levi’s, Juicy Couture, Abercrombie & Fitch, Hollister, Earl Jeans, Ocean Pacific, Kova & T, Modern Amusement, Habitual Jeans, and The North Face among others.
ROYALTIE$ MAY 2009
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Joester L oria Offe The Joester rs Trips o Loria Group f Discove recently bro Education w kered a dea ry ith World
l on behalf Adventures Group, Inc. of Discovery Unlimited, , for youth tr Inc., a subsi avel adventu diary of Am This partner re s. bassador ship creates Discovery St adventure/e udent Adve ducation-bas ntures, whic ed vacation h are a seri The Joester s for kids ag es of Loria Group es 10–17. sa ys of all travel that student by American travel now ac s and the se counts for 2 In the summ gment is gro 5 percent wing. er of 2010, Discovery w tional trips fo ill offer eigh r students an t adventure d accompan ers can lear -based intern ying teacher n all about as. Pa rents, studen the trips at www.discove ts, and teac hrystudentad ventures.co m.
Steak ’n Shake Is a Global Icon Global Icons announced its licensing partnership with The Steak ’n Shake Company, the classic American restaurant chain and creator of the Steakburger. Global Icons will manage and develop the Steak ’n Shake licensing program and extend the brand reach, transforming the restaurant’s menu favorites into easy-to-make meal-planning solutions. The Steak ’n Shake-branded merchandise line will leverage and expand the brand through licensing.
ave Snacks: H ay i t Your W ng et Licensi
Broad Stre client, ing with its Group work The signed with Burger King, Burger Group for Inventure The d snacks. King-license sold g n rrently bei items are cu e th UK) (except for worldwide d club grocery, an in vending, line ors in the stores. Flav Fries, etchup & include K ings, R d, Onion Flame -Broile Street Toast. Broad and French to top duct is set says the pro 2012. annually by $50 million
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ROYALTIE$ MAY 2009
Source In te rlink Brands Driv e Sales Source Interlink Med
ia (SIM) is the than 70-plus br owner of mor e ands. SIM’s lic ensing strength automotive ca within the tegory continue s to drive sale include Motor s. Key items Trend-branded automotive ac and parts. Cel cessories lular accessorie s are strong as ing new Blueto w el l, featuroth items and charging units, This year, the co says SIM. mpany is launch ing new programs with Hot Rod ap pa re l and accessorie s as well as a ne w Hot Rod garage pr ogram. SIM is also launching Slam -branded appa rel and other ac tion sports-b as ed apparel and ac cessory lines.
The Official New York City Licensing RFP. Applying is as easy as N-Y-C. NYC & Company’s licensing division is now seeking proposals via a request for proposal (RFP) for licensing rights to a wide range of categories.* To view, and download the RFP visit nycgo.com/licensing. Proposals are due no later than June 26, 2009 @ 5pm. For more info, email licensing@nycgo.com or call 212-484-1200.
*Product categories are: Adult Apparel; Children’s Apparel; Souvenirs, Novelties and Collectibles (Games, Puzzles, Toys, Ornaments, Sporting Goods); Plush Products; Replica Vehicles; and Licensing Representation Outside North America. Proposals will be considered from manufacturers, master licensees, agents or other parties. Prospective licensees are invited to compete for multiple categories. NYC & Company is the City’s official marketing, partnership and tourism organization.
This is New York City nycgo.com
N
by Paul Narula
BEYOND THE FRAME
ot all art is placed in a frame or on a pedestal and set in a museum. Art can be everywhere, from a greeting card to a paper plate. And art licensing is the business that can bring art from the artist to an appreciative consumer. By presenting an artist’s work as a brand and licensing imagery to manufacturers, art licensors have developed a unique category of licensing that is different enough to support its own trade show (Surtex, which will take place this month from May 17– 19) and a wide variety of product categories and licensing deals.
some changes during these economic times. Licensees have often pulled back spending, preferring to work with their in-house design teams or with artists and agencies with whom they already have established relationships. “Potential licensees have more faith in established brands, especially in this economy, than lesser known or start-up brands,” says Stephanie Drenka, contract and PR coordinator at Bradford Licensing. However, even while licensees are avoiding risks, they are still seeking high-quality work. “Even if they have a small budget, they want to buy great work,” says Lilla Rogers, president of Lilla Rogers Studio. Many in-house teams cannot reproduce
front fees, we’re actually getting more deals and offers,” says Maria Brophy, CEO of Son of the Sea, which represents Drew Brophy and other surf-oriented artists. In some cases, economic difficulties have actually led new artists to the licensing category. Porterfield’s Fine Art has begun working with a number of artists who previously did not participate in art licensing. Various problems, ranging from poor sales at their gallery shows to a decline in available illustration work, has resulted in many artists taking another look at licensing their art and working with licensors and manufacturers. FROM ART TO LICENSE When these artists choose to sign on with a The art licensing category can be very diflicensing agency, such as Porterfield’s, it ferent from other licensing categories. While gives the company a wider range of art to there are many art brands and art licenses on present to potential licensees and works in the market, even popular or recognized art both the artists’ and the agency’s favor. doesn’t necessarily bring a name to a conSome artists have even drawn on the sumer’s mind. “There are very few ‘superstar troubling times to inspire popular work. artists’ such as Thomas Kinkade or Mary Dena Designs has created a new line called Engelbreit in the market today but there are a happi by Dena, inspired by the artist’s need bunch of amazing artists that are known more to present happiness in a time when people for their look than their name,” says Rob feel morose and downtrodden. The line has Snow White Discovers The Cottage, by Thomas Kinkade Mejia, president of RJM Licensing. It’s that received the attention of numerous look that forms the core of any art brand and is the same level of work as a professional artist licensees already and continues to expand more important to its licensing business than the and thus many licensors continue to do solid its roster of licensees in categories ranging name, even for the “superstars” of the category. business on the basis of a strong design portfo- from social expressions to quilting materiIn addition, an art license can be incredibly ver- lio or, in the case of art licensing agencies, a als. “The positive message being sent here satile. Les Brewin, vice-president at Art Makers strong stable of artists to work with. “Good is perfect for the times,” says Dena International, points out that “the same design designs win every time,” says Jim Meserve, Fishbein, artist and head of Dena Designs. can be used on cards, school supplies, vinyl president of Next Day Art. “Everyone wants a little bit of happiness.” clings, party wares, and/or figurines.” For some companies, while royalties have Lance Klass, president of Porterfield’s Fine gone down, revenue has gone up thanks to other Art, echoes the sentiment, stating, “More peoART AND THE ECONOMY changes. “We’re finding that because we’re not ple are now recognizing what they’re calling Like many industries, art licensing has seen Disney or a huge licensor that charges huge up- ‘comfort art’ is the stuff that sells the best.”
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SHOWTIME
June. While Surtex focuses solely on art licensMuch of that comfort art and even edgier ing, Licensing Show represents the other end of fare is introduced to licensees at Surtex. Surtex the spectrum. Though art licensing does have its is one of the most important shows in the world own section on the show floor, Licensing Show of art licensing. For 25 years the show has gath- encompasses the entirety of the licensing busiered artists, agencies, and licensees under one ness, of which art forms only one part. roof to provide a one-stop shop that can open Nonetheless, Licensing Show also reaches a doors and provide myriad opportunities wider audience than Surtex. The on both sides of the category. more general focus of the show Surtex is one of the only can bring art brands in touch with shows in the U.S. that is licensees that wouldn’t come focused solely on art and art into contact with the artists or do licensing and provides a not attend Surtex. wide variety of programs Both Licensing Show and beyond the show itself for Surtex have proven to be valuexhibitors and attendees, able assets to most licensors. ranging from business educaAlmost every licensor chooses tion seminars to talks on how to attend one or both of the to improve one aspect of their shows and many receive difbusiness or another. “It’s a relaferent results from year to year. tively affordable show for “Some years I’d say Darker, edgier art such as Dan Statler’s Vulture [new licensors] to jump Licensing Show was betKulture images can also be strong licenses. into the licensing busiter for us. Other years, ness,” says John Haesler, partner at MHS Surtex was better,” says Robert Giordano, presLicensing. This year, Surtex will see more than ident of Giordano Studios. However, this year 250 exhibitors, a strong number for the show marks a fairly major change in the dynamic when everyone is watching their budget. The between the shows. Surtex remains in New show will also once again take place adjacent to York City’s Jacob Javits Convention Center. the Stationery Show, a show that features one of But Licensing Show will take place on the other art licensing’s strongest categories. The close- side of the country, in Las Vegas. This has ness of the shows allows for significant interac- forced some difficult choices for attendees and tion and increased traffic, as each group of exhibitors. Companies that are located on the exhibitors and attendees have more than East Coast have had an easy time attending both enough reason to attend both shows. shows, as many were within driving distance Another major event for art licensing is the from New York City. Traveling to Las Vegas International Licensing Expo (commonly can incur significant expenses and most compaknown as Licensing Show), taking place in nies are not necessarily willing to spend that
much money at this time. “We might see a decrease in the amount of smaller and independent artists that are able to attend,” says Linda Mariano, vice-president of marketing and licensing at the Thomas Kinkade Company. The move will have a strong influence not only on the attendee demographics of Licensing Show, but for Surtex as well. With Surtex as the only remaining option for convenient exposure on the East Coast, many believe that the show will see a rise in attendance by companies that actively seek out art to license. Companies that previously only conducted their art licensing at Licensing Show may now instead seek to do their business at Surtex, thanks to its convenience. GLM, the company behind Surtex, also posits that there may be a rise in European attendance at the show, since traveling to Las Vegas from Europe is more expensive. Many licensors expressed a concern that proximity to large movie studios and entertainment giants will make it hard for non-entertainment brands to stand out at a West Coast-based show, which makes Surtex all the more important. While it is impossible to predict the future of any category, its clear that things are changing for art licensing. Licensing Show’s move has had an impact on all aspects of the licensing business, and Surtex and art licensing are no exception. Though the extent of that change remains to be seen, licensors and GLM have expressed confidence in the future of the show. “Our goal is to continue producing a show that is extremely viable and lucrative for exhibitors,” says Penny Sikalis, vice-president of GLM and Surtex show manager. “We’re looking forward to a positive show.”
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ART LICENSING
by Paul Narula
Art can be everywhere, especially when it’s licensed. Elegant landscapes and whimsical characters can appear on any type of product, as long as the artist is willing and ready to find the means to take his or her work to the marketplace. Here is a sampling of some of the latest deals, brands, and artists to hit the art licensing arena.
DENA DESIGNS
Sunrise Greetings will be using happi by Dena imagery for envelopes, boxes, and labels for Mother’s Day.
SON OF THE SEA
Son of the Sea has licensed Sigg to create traveling water bottles that feature Drew Brophy’s surferoriented art.
THOMAS KINKADE COMPANY
Thomas Kinkade has teamed up with NASCAR to create a series of original paintings based on the most famous NASCAR sporting events. NASCAR Thunder, shown here, commemorates the 50th anniversary of the Daytona 500.
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RJM LICENSING
Ceaco has expanded its line of puzzles featuring RJM’s Lesley Anne Ivory’s Ivory Cats artwork. Ceaco now produces nine puzzles featuring the images.
BRADFORD LICENSING
Bradford Licensing’s Happy House brand (shown) is expanding its Fab Friends social network for friends of the brand and will continue to look for new licensees.
SYNCHRONICITY
GIORDANO STUDIOS
Synchronicity will be representing urban artist Justin BUA in all licensing endeavors as the artist licenses his work for the first time this year.
Giordano Studios will unveil Safari Showcase. This line of art will be used as a line of quilting art, distributed solely to independent stores.
NEXT DAY ART
Lang has signed Next Day Art’s artist Helen Rhodes for a number of new products, including calendars (shown) and pocket organizers.
ART MAKERS INTERNATIONAL
Art Makers International is seeking partners for Vicky Howard’s new line of holidaythemed art. Potential categories include greeting cards and apparel.
MHS LICENSING
Eagle Textiles is producing a full line of bedding products for MHS Licensing artists The Hautman Brothers.
PORTERFIELD’S FINE ART
Donna Knold is one of Porterfield’s newest artists. The company will focus on expanding Knold’s artwork into products such as apparel, décor, greeting cards, stationery, and more.
ROYALTIE$ MAY 2009
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O
JEEP DRIVES SUCCESS ON AN INTERNATIONAL STAGE by Nancy Lombardi
ne of the goals of licensing is to
with this strategy Jeep is staffing its own stores,
ly every license aspires to navigate, but very
a result, the international business is driven by
nurture a license into a brand and then into a lifestyle. It’s a path near-
few truly achieve it in a meaningful—and
profitable—way. Jeep was simply a vehicle.
It then ventured into licensing. It has now morphed into a way of life that symbolizes a
mix of outdoor adventure and rugged sophistication. It stands on its own to the point that
the deep problems in the auto industry have
not affected the licensed products in either
the U.S. or abroad, according to The Joester Loria Group, which represents Jeep for
licensing. This rugged sophistication is even more pronounced in non-U.S. markets where
Jeep vehicles are more expensive than their U.S. counterparts so, in turn, a higher-end licensing program can be crafted.
The Jeep licensing program is robust in
the U.S. with everything from apparel to dog strollers, and it spans a variety of price
points. But in non-U.S. markets, specifically South Africa, Australia, China, and Korea, it makes for a very strong high-end program in top department stores.
“Jeep denotes an adventurous, outdoor
rugged lifestyle,” says Debra Joester, president
of The Joester Loria Group. “We really believe that the brand has to have a consistent global identity but act local as far as understanding each demographic. And in each of those markets that concept is interpreted a little differently.”
Part of the Jeep program’s success stems
from the shop-in-shop concepts as well as the
Jeep free-standing stores in the four markets
mentioned previously. Joester explains that
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offering better service to the consumer, and is
able to keep a handle on its brand message. As
soft goods (as evidenced by the images on the right from South Africa and Korea).
“We started in South Africa and it’s been
amazing,” says Joester. “It’s become the poster
child for what we are rolling out for the rest of the world. China came next and we opened a
store in the Beijing Airport in time for the
Olympics. The Olympics were very important
to China and knowing that Jeep was supporting them was very important,” she says. “Australia is in a lot of ways similar to South
Africa. They have picked up a lot of the same
shop fixturing and it’s been a seamless execution between these two markets.”
But the next exciting new move is into
Korea and it has been years in the making. “We
have been speaking to a number of Korean companies over the years [looking for the right
opportunity],” Joester says. “We just launched at the beginning of 2009 with shop-in-shop
stores in Lotte [the department store chain] and
there will be a lot more by the end of the year,” she says. Lotte is one of the better department stores in Korea and, in addition, Jeep freestanding stores are in development for Korea.
“Korea is now considered the style leader
in Asia,” says Joester. “It’s a much younger
audience. The people have a funkier style and are more fashion forward.”
The Jeep brand will continue to expand inter-
nationally and there is no doubt it should be a success. “We see each market as distinct and the next market for us is Russia,” says Joester.
Pictured above is apparel from licensee Musgrave Agencies in South Africa. The South African Jeep adult apparel is sold in Jeep’s free-standing stores, leading department stores Edgars and Stuttafords, and outdoor retailers such as Trappers Trading. Shown below is a Jeep print ad from Korean licensee Wholehauss. The company has developed a collection of men’s and women’s casual wear, which launched in February. The apparel is available in Jeep shop-in-shops in high-end Korean department stores such as Lotte.
C ANDY L ICENSING: A H ISTORY
T
by Chris Adams
here are few categories in licensing that have as much history as the candy business. The feel-good attributes associated with candy have helped stalwarts in the industry maintain a high profile that has acted as a springboard for licensing. Candy properties offer multi-generational appeal as each subsequent generation of kids acquire a taste for a little something sweet. Right now, some of the oldest, best established candy brands are making big inroads in licensing. The New England Confectionary Company (NECCO) owns some of the oldest brands in the business—brands that have stood the test of time and the economic turmoil that has cropped up in those times. The main focus of the company’s licensing program, which will go through a complete refresh in 2010, is the Sweethearts brand (which originated in 1866), but also old-time favorites including Mary Jane’s (a Depression-era candy) and NECCO Wafers (introduced in 1912). “The brands we own show that they reach consumers in all financial and social markets and situations,” says Jackie Hague, vicepresident of marketing for the New England Confectionery Company. Another classic candy manufacturer that has grown its licensing stable in the past two years is Mars, which own classic candy brands such as Milky Way (introduced in 1923), Snickers (introduced in 1930), and M&M’s (first served to American GIs in 1941, during WWII), among others. “We’ve grown from 12 licensees to 50 in
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the past two years and we’re supporting our licensees to make the biggest impact at retail,” says John Capizzi, general manager, wholesale and licensing, Mars Retail Group. “We’ve ramped up relationships with licensees and now we provide retailers with a broader product mix, a higher caliber of licensees, and a stronger product development program. In addition, we’ve assembled a team of experts to really move the licensing program forward.” Hershey’s is another of those classic candy brands that has not only stood the test of time, but prospered. The Hershey’s stable includes the iconic Hershey’s bar (introduced in 1900), Hershey’s Kisses (introduced in 1907), and Reese’s Cups (introduced in 1928). Global Icons manages Hershey’s licensing campaign and has announced a number of new licensees with products expected to hit shelves in 2009 and 2010. Of course, talking about the rich history of the candy category doesn’t tell the whole story. Classic candy brands that thrive today as modern-day favorites have also established themselves in the candy category. The Licensing Company (TLC) has developed a substantial food and beverage program for the Jelly Belly brand of jelly beans. The licensing program now boasts 53 licensees worldwide and has experienced consistent 40 percent growth year over year. TLC is almost ready to announce its newest licensee, which will offer a line of carbonated and non-carbonated soft drinks. “The reason our food and beverage program took so long to come about is because
OF
S WEETNESS
The strength of Mars Retail Group’s M&M’s brand helped Maxell get placement at retail for its licensed ear buds.
we spent our time with flavor technologists to accurately recreate the top 50 flavors of Jelly Belly,” says Angela Farrugia, group managing director at The Licensing Company. “We always set out to create the whole brand experience of Jelly Belly.”
AFFORDABLE LUXURY
While candy licensing may not be the “sexiest” segment of the licensing industry— it doesn’t offer the potential and the glamour of blockbuster movie properties—it also doesn’t suffer from some of the shortfalls of higher-profile properties. “There are cycles when candy licensing
is stronger, but these peaks and valleys tend to be much more modulated than what we typically see with entertainment-based properties, which generally have shorter life spans,” says Lisa Marks, president of Lisa Marks & Associates, which manages the licensing of candy brands such as Peeps, Hot Tamales, Mike & Ike, Smarties, Dum Dum Pops, and Warheads. “Moving into 2010, retailers are looking to triedand-true categories, like candy, to provide predictable sales response and minimize risk.” The low price points of the actual candy help keep it higher profile in this time of economic hardship. While families may be cutting back on eating out at restaurants and certain types of entertainment, candy sales are actually growing despite the economy. “Consumers are still willing to indulge in an affordable luxury, despite the struggling economy,” says Mars’s Capizzi. “They are looking for small luxuries and candy definitely fills that need.”
SWEETS VS. SWEET PRODUCTS
Taking a walk down the candy aisle of any retailer, it is easy to become overwhelmed by the number of brands residing there. There are certainly an array of classics, there are fresh faces, and many brands that fall somewhere in between. Then, the brands can be divided into those that have licensing poten-
tial and those that will exist only as sweets. What separates the two? Lisa Marks & Associates has identified five overall brand characteristics that predicate success for candy brand licensing. First, the brand must have strong multi-generational awareness and appeal. Second, it must have great art assets representing both contemporary and vintage imagery. Third, it must have recognizable and fun/unique
“TLC is very strategic,” says TLC’s Farrugia. “When we enter a market space, we do it because we know there is consumer demand, we know there is buyer demand, and we know we are working with a licensee that can create great product. We also have the backing of some of the biggest retailers.” Of course, the relationship between licensee and brand is a two-way street. Sure, the licensee must offer distribution into certain channels and retailers, but sometimes the right brand can offer help in that department. Mars’s Capizzi says that ear bud licensee Maxell couldn’t get into a certain retailer because another manufacturer had an exclusive agreement. However, when Maxell introduced M&M’s ear buds, it got Maxell in the door with that account. es.
USB driv ey’s-licensed these Hersh d te ea cr es Jazwar
characters associated with the brand. Fourth, it should have a distinct and desirable flavor profile. And fifth, it should have an established emotional connection with the consumer. Even properties that meet all five of these criteria could experience difficulties at retail. Think of the criteria as tools and the overall execution of the licensing program is what really distinguishes a brand. This involves choosing the right categories to enter, choosing the right licensees, and discovering the right retail partnerships to enter. That is what has worked for TLC’s Jelly Belly property.
SWEET SUCCESS
The candy industry offers a rich, storied history. With connections as varied as The Great Depression and WWII, Halloween and Easter, the points of reference are nearly endless. After all, each subsequent generation of kids develops a taste for the sweet stuff. As these children grow into adults, some of the best, most carefree memories hearken back to sweet-toothed youth. As adults, many people turn to sweets as a means of solace or just for a small indulgence. When managed correctly, marketers of licensed candy products can tap into this world of memory and escape, as some of the oldest and highest profile candy brands have managed to do.
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C ANDY L ICENSING
Candy brands carry with them a long, rich history that includes memories of sweeter days. However, the brands are far from one-trick nostalgia ponies as each generation of children discovers a taste of something sweet. Licensors in the category harness all of these good feelings for their properties. by Chris Adams
G LOBA L I CONS
Global Icons manages the licensing for the Hershey’s stable of brands. New licensees include Jazwares for USB drives, digital cameras, MP3 speakers, and digital photo frames; Pet Brands for pet toys and pet beds (shown); World Trade Jewelers for fine jewelry for high-end boutiques, department chains, and specialty stores; Mighty Fine for juniors’ T-shirts; DGL Group for Hershey’s-branded ear buds; and MMG for hosiery and socks.
B RA DFORD L ICENSING
Bradford manages the PEZ licensing program. The PEZ collection of children’s eyewear (shown), by A&A optical, offers eyewear options in classic and contemporary styles and fun shapes and colors. PEZ for Pets is a new brand from the Sherpa Pet Group featuring a pet-oriented version of the classic candy dispenser.
M ARS R ETAIL G ROUP
Over the past two years the Mars Retail Group has invested in its licensing program and has grown its stable of licensees from 12 to 50. Licensees include Maxell for ear buds, MZ Berger for watches (shown), CandyRific, Bonne Nell, and Bradford Exchange.
L ISA M ARKS & A SSOCIA TES
LMA manages a range of candy brands for licensing, including Peeps, Hot Tamales, Mike & Ike, Peanut Chews, Smarties, Dum Dum Pops, and Warheads. New for Peeps is a line of handpainted ivory china from Lenox (shown), as well as luggage tags, key rings, chirping chicks, bunnies, and plush baskets from Russ Berrie.
S YN CHRONICITY
The Tootsie Roll candy brands—Tootsie Roll, Tootsie Pops, Charms, Cella’s chocolate-covered cherries, Charleston Chews, Sugar Daddy, Sugar Babies, Dots, Junior Mints, Pom Poms, and Blow Pops—are represented by Synchronicity. The program encompasses more than 50 licensees, from the Idaho Lottery to Intradeco Apparel (organic kids’ T-shirts), from Mattel (collectible trucks) to Yerzies (customized apparel).
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B RANDGENUITY
Client Cadbury Adams has recently extended its relationship with Frankford beyond Sour Patch Candy Canes to include Sour Patch Jelly beans. Flavors include red berry, lime, lemon, and orange.
IMC
IMC announced that it has negotiated a new licensing agreement for Rocky Mountain Chocolate Factory to develop a premium hot cocoa mix. Licensee Lehi Roller Mills is a producer of flour and gourmet brownie, pancake, muffin, and cookie mixes. The company is known for its cloth bag packaging.
NECCO
The plan for NECCO moving forward is to prioritize its Sweethearts brand, which will be experiencing a complete refresh in 2010. In 2009, Sweethearts became a licensee for the Twilight and USO brands.
T HE L ICENSING C OMPANY
New Jelly Belly-licensed lines include the Jelly Belly Couture line of baby clothing available at Target. Shown is the Jelly Belly Creeper, which is a two-pack of corresponding infant bodysuits. Also new is a line of bath and body products available at Sears. Expect a licensee for carbonated and non-carbonated Jelly Belly soft drinks to be announced soon.
L ICENSING L INK
Dippin’ Dots is among the candy brands that are represented by Licensing Link. New items for Dippin’ Dots include flavored lip balm, as well as a line of make-your-own Dippin’ Dots toys from Big Time Toys.
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BRANDISSIMO!
BABB AND FISHER, PROMOTIONS
Brandissimo! promoted two key executives to better manage the company’s continued growth in its online games and virtual worlds business. Executive vice-president and general manager Andy Babb was named president. Vice-president Josh Fisher was promoted to executive producer and senior vicepresident of content. Babb joined Brandissimo! in July 2007. Under his leadership, Brandissimo! produced the online MMOG NFLRUSH Zone for the National Football League. Fisher is an Emmy Award-winning executive who created and co-founded Urbaniacs.com, an online social community and gaming site in the form of a comic book world come to life. Fisher has 12 years experience creating and producing content for young audiences, tweens, and teens.
TRAVIS J. RUTHERFORD FOUNDS TRAVIS JAMES, LLC
Travis James, LLC, is an independent licensing, consulting, and brand management company founded by Travis J. Rutherford. It provides a wide range of personalized services to its clients that include brand owners, entertainment companies, production companies, licensees, and agents. Travis James facilitates the global expansion of intellectual property by creating the right long-term partnerships between brand owners, manufacturers, distributors, and retailers; representing brands, entertainment properties, manufacturers, and promotional companies; developing and implementing strategies to achieve tangible results; generating new revenue streams and expanding markets; managing brand expansion campaigns; leveraging a global network of strategic partners; and delivering superior client service. The client base includes American Extreme Team, Body By Jake, Brand Sense Partners, Claire Murray, Extreme Corporation, Fremantle Media Gaming, P-Popz, Rollerball, and Sidhe Interactive. For more information, visit www.travisjamesllc.com.
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CHORION
PAULA ROSENTHAL, SENIOR VICE-PRESIDENT, CREATIVE
Chorion hired Paula Rosenthal as senior vice-president, creative. She will manage a production slate and create new content. Most recently Rosenthal worked with ABC Cable Networks Group supervising the development and production of preschool programming for Disney Channel. As vice-president of Playhouse Disney, she was responsible for programming and production strategies, creative development, and the day-to-day execution of entertainment and learning-based properties.
DISCOVERY COMMUNICATIONS
KELLY DAY, COO, DIGITAL MEDIA AND COMMERCE
Discovery Communications promoted Kelly Day to COO of the company’s digital media and commerce division. Day will oversee all operations for the recently combined digital media and commerce division, including the company’s U.S. websites; interactive technology; digital operations and programming; and licensing and home entertainment. Most recently, Day served as COO of Discovery’s commerce division.
SCI FI VENTURES
ALAN SEIFFERT, SENIOR VICE-PRESIDENT
SCI FI hired Alan Seiffert as senior vicepresident, SCI FI Ventures. He is charged with assessing, developing, and implementing new business strategies and partnerships that extend the SCI FI brand into new markets and generate significant incremental revenue. Target growth areas include digital gaming, mobile, technology, licensing and merchandising, and the youth market. Previously, Seiffert was senior vice-president, business development & partnerships for CNBC Asia Pacific.
BRANDING AGENCIES
Answers on page 38 Beanstalk Brand Central Brandgenuity Brand Sense
Broad Street Equity Management Fusion IMC
Joester Loria Group Lisa Marks Associates LMCA MODA
Nancy Bailey SloaneVision The Licensing Company
Guess Who?
This licensing exec has fused the skills he learned at companies such as Mattel, Warner Bros., and Neutrogena to create his own licensing company, which now represents a wide variety of properties ranging from talented musicians to artistically painted melting clocks. Who is he?
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JUNE
2–4
E3
e3expo.com
Los Angeles Convention Center
Los Angeles
28–30
Summer Fancy Food Show New York
specialtyfood.com
Jacob Javits Convention Center
New York City
comic-con.org
San Diego Convention Center
San Diego
thegourmetshow.com
Moscone Center
San Francisco
magiconline.com
Las Vegas Convention Center
Las Vegas
2–4
JULY
Licensing International Expo
23–26
Comic-Con
8–10
Gourmet Housewares Show
31–9/2
MAGIC Marketplace
A UG UST
14–20
New York Home Textiles Market Week
S EPTEMBER
13–16
30–10/1
ABC Kids Expo
Brand Licensing Europe
O CTOBER
licensingexpo.com
Mandalay Bay Convention Center
nyhometextilesmarketweek.com
Jacob Javits Convention Center
Las Vegas
New York City
theabcshow.com
Las Vegas Convention Center
Las Vegas
brandlicensingeurope.com
The Grand Hall, Olympia
London
5–9
MIPCOM
mipcom.com
Palais Des Festivals
Cannes, France
17–22
High Point Market
ihfc.com
International Home Furnishings Complex
High Point, NC
6–9
Fall Toy Preview
toyassociation.org
Dallas Market Center
Solutions to Puzzles on Page 37
Dallas
Joshua Romm is the founder and president of
Fusion Licensing, Inc. Romm has served as a licensing consultant to leading Fortune 500 companies and U.S. governmental agencies. Fusion’s current clients include
EMI Music, The Royal Mail, Austin-Healy, Triumph,
Daisy Rock, the estate of Salvador Dali, and other
signature artists. Romm has held executive and international business management positions at Warner
Bros. Consumer Products, Equity Management, Inc., Mattel, and
Neutrogena. He is also a board of directors officer for the Global Children’s Organization (GCO) and has organized and led conflict resolution camps in
The Balkans and Northern Ireland. In 1999, he represented the GCO at a summit on conflict resolution at the United Nations.
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ROYALTIE$ MAY 2009
by Christopher Byrne
POSTED
BELOW IS A SAMPLING OF WHAT
AMERICAN
MOST VISITED WEBSITES, Q1 2009 SOURCE: COMSCORE WORLD METRIX 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
SITE • VISITORS • PERCENTAGE OF GLOBAL INTERNET AUDIENCE
Google • 776 million • 77 percent Microsoft sites • 647 million • 64.2 percent Yahoo! sites • 563 million • 55.8 percent AOL • 273.1 million • 27.1 percent Wikimedia Foundation sites • 273 million • 27.1 percent eBay • 241 million • 23.9 percent Facebook • 222 million • 22 percent Amazon sites • 187 million • 18.6 percent CBS Corporation • 179 million • 17.7 percent Fox Interactive Media • 173 million • 17.2 percent Ask Network • 165 million • 16.3 percent Apple, Inc. • 162 million • 16 percent Tencent, Inc. • 159 million • 15.7 percent Baidu.com • 152 million • 15.1 percent Adobe sites • 124 million • 12.3 percent
TOP-SELLING MAJOR LEAGUE BASEBALL CAPS, WEEK OF APRIL 13
SOURCE: AMAZON.COM 1. New York Yankees Adjustable Cap 2. Boston Red Sox Fitted Cap 3. Chicago Cubs 1914 Replica Fitted Cap 4. New York Yankees Fitted Cap 5. Boston Red Sox Clean Up Adjustable Cap 6. Chicago Cubs MVP Adjustable Cap 7. Los Angeles Dodgers MVP Adjustable Cap 8. Baltimore Orioles 1988 Cooperstown Fitted Cap 9. Philadelphia Phillies MVP Adjustable Cap 10. Milwaukee Brewers 1982 Cooperstown Fitted Cap
CONSUMERS ARE INTERESTED IN THIS MONTH .
MOST POPULAR BLOGS, APRIL 2009 SOURCE: EBIZ 1. TMZ.com 2. Gizmodo.com 3. PerezHilton.com 4. Engadget.com 5. Boingboing.net 6. TechCrunch.com 7. LifeHacker.com 8. Gawker.com 9. FanHouse.com 10. AutoBlog.com 11. Mashable.com 12. Kotaku.com 13. Jalopnik.com 14. Consumerist.com 15. Treehugger.com
TOP DOWNLOADED FREE APPS FOR IPHONE/IPOD TOUCH, WEEK OF APRIL 13
SOURCE: APPLE APP STORE 1. F-My Life—entertainment 2. Dictionary.com dictionary and thesaurus—reference 3. Awesome Ball—entertainment 4. Amazing X-Ray FX2 Lite—entertainment 5. Word Search Unlimited Lite—games 6. Galaga Remix Lite—games 7. iMob40 Respect Points—games 8. Catcha Mouse—games 9. Racing Live (limited time offer)—games 10. Yahoo! Messenger—social networking
ROYALTIE$ MAY 2009
39
NG NOW REPRESENTI
NDS THIRD PARTY BRA
YOUR
BRAND
HERE
BUILDING GLOBAL BRANDS FremantleMedia Enterprises is the leading independent one-stop-shop for global brand representation. We have a proven track-record of groundbreaking programs across all licensing disciplines including consumer products, interactive, mobile, sponsorship, integrated marketing, live events, home entertainment and international television program distribution.
For further information, contact: James Ngo Sr. Director, Consumer Products FremantleMedia Enterprises T: +1 (818) 748 1145 E: james.ngo@fremantlemedia.com
www.fremantlemedia.com
CONTACT US TO FIND OUT HOW WE CAN HELP BUILD YOUR BRAND
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