Exploring how brands can tap into unexpected revenue streams through strategic licensing partnerships.
Consumers crave novelty and convenience—often gravitating toward brands they recognize and trust. As a result, businesses large and small are discovering that brand licensing can be a powerful catalyst for growth.
Beyond core offerings, strategic partnerships and well-crafted brand extensions in secondary markets can generate new revenue streams, increase brand visibility, and future-proof your business.
But how, exactly, can you leverage these licensing opportunities to potentially double your revenue? Let’s explore.
What is Brand Licensing?
At its core, brand licensing is a mutually beneficial partnership where one company (the licensor) grants another (the licensee) the right to use its brand, logo, or intellectual property in connection with a product or service.
The licensor benefits from royalty income and increased brand exposure, while the licensee gains instant brand recognition and an existing customer base.
When done strategically, brand licensing allows you to expand into secondary markets—new categories or channels that align with your brand’s identity without undermining its core values.
Why Secondary Markets Matter
Think about some of the biggest names in food, beverage, and consumer packaged goods: they almost always have presence across multiple consumer touchpoints—think coffee chains offering branded grocery products or restaurant chains licensing their signature sauces for retail shelves.
This isn’t just about ubiquity; it’s about:
- Expanding Customer Reach
By venturing into related product categories or retail channels, brands can introduce themselves to new audiences who may never have encountered them otherwise. - Diversifying Revenue Streams
Relying solely on one product category or distribution channel is risky. Creating licensed products in additional categories can mitigate market fluctuations and help maintain steady revenue flow. - Enhancing Brand Equity
Partnerships in new categories can reinforce your brand story. When your branding remains consistent, you simultaneously build credibility and brand loyalty.
“Brand licensing is not simply about slapping a logo onto a product. It’s about forging meaningful partnerships that leverage brand equity to unlock new revenue streams and consumer experiences.”
— Peter Cross, VP of Strategic Partnerships
Tapping Into the Hidden Value
1. Identify Complementary Categories
The first step toward a lucrative secondary market is identifying categories that feel authentic to your brand’s core values. For instance, a casual dining chain might explore packaged sauces or frozen meals, while a confectionery brand might expand into bakery mixes or coffee creamers.
- Market Research: Dive into consumer behavior reports to see where brand loyalty overlaps with relevant product demand.
- Trend Analysis: Keep an eye on dietary trends (plant-based, keto, etc.) or wellness fads that can open windows of opportunity.
2. Forge the Right Partnerships
Choosing the right licensing partner can make or break your brand extension.
Look for manufacturers or distributors with a proven track record, solid distribution networks, and a deep understanding of the market segment you’re aiming to enter.
- Shared Vision: Ensure they’re enthusiastic about preserving your brand’s integrity and adhering to your quality standards.
- Scalability: Pick partners that can scale production quickly if demand spikes.
3. Negotiate Win-Win Terms
A strong contract ensures clarity around royalties, responsibilities, and performance metrics. Beyond financial terms, you’ll want to address marketing and co-promotion strategies that amplify both parties’ reach.
- Royalty Structures: Typical deals may include minimum guarantees or tiered royalties based on sales volume.
- Quality Control: Maintain brand consistency through clear product specs, packaging guidelines, and marketing requirements.
4. Maintain Consistent Brand Messaging
Moving into secondary markets doesn’t mean compromising your brand’s identity. On the contrary, every partnership should enhance your brand story. Everything from product packaging to marketing campaigns should reflect your brand’s tone, visuals, and quality.
- Design Continuity: Keep color palettes, logos, and typography consistent across product lines.
- Brand Storytelling: Integrate messaging that connects back to your brand’s origins and values.
Maximizing Revenue Growth
When brands skillfully leverage secondary markets, they often see exponential growth. A consumer who loves your restaurant’s signature dish is likely eager to bring that experience home. As a result, a licensing deal that puts your product on grocery store shelves effectively doubles—or even triples—exposure and revenue potential.
- Cross-Promotions
Launching a new product line? Collaborate on in-store promotions, social media campaigns, and email marketing to drive initial awareness and sales. - Seasonal & Limited-Edition Releases
Leveraging seasonal trends or holiday-themed offerings can create urgency and keep your products top-of-mind with consumers. - International Expansion
Once you’ve established success domestically, consider partnering with global licensees to tap into international demand. This not only increases revenue but also enhances global brand recognition.
Why Partner with a Brand Licensing Agency
While brand licensing offers myriad benefits, navigating these waters can be complex. From identifying the right markets to drafting mutually beneficial contracts, it helps to have a seasoned brand licensing agency by your side. Experts in the food and beverage sector, like Broad Street Licensing Group, can help:
- Spot emerging trends and lucrative secondary markets
- Connect you with reputable manufacturers and retailers
- Craft compelling, on-brand products for retail
- Structure win-win licensing agreements for sustained growth
By letting experts handle the complexities, you free your internal team to focus on what they do best—growing your core business while still reaping the rewards of strategic brand extensions.
Ready to Explore Your Brand’s Hidden Value?
Secondary markets can offer unprecedented opportunities to scale your business, diversify your revenue, and reinforce your brand’s position in consumers’ minds. If you’re looking to capitalize on these hidden gems, brand licensing may be the game-changing strategy you’ve been seeking.
Remember, the key to success lies in authenticity, partnership alignment, and consistent brand execution. With the right approach, your brand can thrive in fresh markets—and potentially double your revenue in the process.
About Broad Street Licensing Group
For over 20 years, Broad Street Licensing Group has been a leader in food and beverage brand licensing, bringing together globally recognized brands and category-leading manufacturers. Our mission is to transform retail aspirations into award-winning consumer products. Whether you’re a brand looking to extend into new categories or a manufacturer seeking the perfect licensing partner, we’re here to guide you every step of the way.
Contact us to learn how Broad Street Licensing Group can help unlock your brand’s potential in secondary markets. Let’s forge partnerships that elevate your revenue—and your brand’s legacy.
