Royaltie$, April 2011

aprIL 2011 Volume 6, No. 2

Features

18

the pendulum swings Back to Brands

by Laurie Leahey

20 Brand Licensing: Licensor roundup

by Laurie Leahey

22

sweet treats Offer steady sales

by Chris Adams

24 Candy Licensing: Licensor roundup

by Chris Adams

26

Infant & preschool Licensing Isn’t Child’s play

by Chris Adams

28 Infant & preschool Licensing: Licensor roundup

by Chris Adams the COver: The Hershey’s Kisses candy wrapper bag from Nahui Ollin is made from more than 4,000 individual candy wrappers utilizing a Mayan crafting technique.

On

COver by DesigN eDge

Departments

On this Page (frOm the tOP): Licensing Link signed Flix Candy for Dippin’ Dots smooth Creamy bites, TLC brokered the deal for Focus Products group to manufacture Jelly belly ice treat syrup, beanstalk signed Jel sert to introduce Air Heads Fruit squeezers, and Learning Curve offers a new Lamaze book line, as well as the Ludorum-licensed Chuggington Wooden railway Double-Decker roundhouse.

4 Observations & Opinions 6 The Ticker 8 Real Deal 10 Royaltie$ Marketplace: VeggieTales 12 On the Radar 14 Essence of Style 16 Mavericks in the Market: Jamie Salter 30 You’re Hired!

32 Calendar of Events 34 Endcap

www.aNbMedia.com

by Andy Krinner

PUBLISHER ANDY KRINNER ANDY@ANBMEDIA.COM

The Beginnings of Branding

B

4

randing as we’ve come to know

connect with those lifestyles even in a

it began humbly enough before

small way—whether it was one of lux-

it exploded into the multi-bil-

ury, fame, or fantasy.

lion-dollar industry that it is today. Dur-

Fast-forward to today and we see

ing the industrial revolution, factories

that not much has changed. Only, today

began to ramp up production and were

there are experts in the field of brand li-

able to turn out mass quantities of prod-

censing who make their livings match-

ucts. Soon the manufacturers began to

ing merchandise with brands that people

distribute outside the confines of the

love. As I’ve come to know over the

growing urban population.

past 17 years, it’s not as easy as one

As this retail expansion occurred,

would think. But when the right brand

manufacturers noticed that unmarked,

is attached to the right product it causes

generic items had a hard time competing

a spontaneous consumer reaction that is

against better-known, local brands no

downright magical.

matter the price. The people bought what

We celebrate some of today’s best

they were familiar with. Gaining con-

branding efforts in this issue in the brand

sumer confidence became a high priority

licensing feature that begins on page 18.

to companies such as Campbell’s, Kel-

Also, in case you missed our an-

logg’s, and Quaker Oats and they began

nouncement, save the date of July 28,

to implement strategies to do just that.

2011. That’s the day aNb Media will

This was the birth of brand licensing.

bring together some of the biggest and

By the turn of the century, many

most prestigious consumer brands under

companies were introducing logos, slo-

one roof for the ROyAlTIe$ BRAND

gans, and mascots like never before to

ShOWCASe (RBS).

establish and hold onto what was to be-

RBS is a one-day media event that

come a national audience. By the 1940s,

will gather consumer, business, and on-

manufacturers recognized the personal

line press together to see branded mer-

relationships that consumers were build-

chandise from an array of categories

ing with these brands. They began to re-

that will be available for purchase dur-

alize that not only did consumers

ing the all-important fourth-quarter

repeatedly buy brands they were famil-

selling season. Products sold in every

iar with, but they would also buy

retail tier are expected to be well-rep-

branded merchandise that represented a

resented. For more details, please visit

popular lifestyle. Consumers aspired to

www.aNbMedia.com.

ROYALTIE$ APRIL 2011

ASSOCIATE PUBLISHER BOB GLASER BOB@ANBMEDIA.COM ADVERTISING MANAGER DONNA MOORE DONNA@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 EDITOR LAURIE LEAHEY LAURIE@ANBMEDIA.COM ASSISTANT EDITOR JENNIFER LYNCH JENNIFER@ANBMEDIA.COM WEB MASTER ERIK KIECKHAFER ERIK@ANBMEDIA.COM WEB CONTENT MANAGER BRENDAN SANABRIA BRENDAN@ANBMEDIA.COM CONTRIBUTORS CHRISTINE CRIMI; MATT NUCCIO, MATT@DESIGNEDGE.NET 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 six times per year by aNb Media. Copyright 2011 aNb Media. 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. Opinions and comments expressed in this publication by editors, contributing writers, or solicited or unsolicited documents are not necessarily those of Royaltie$ management.

A RecAp of IndustRy HeAdlInes for More news, Visit www.anbMedia.com • sign up to Receive

fRee

Weekly news Blasts

The symbol to the left is a special type of bar code called a QR code. If you have a QR code app installed on your smartphone (there are many free versions available), snapping a picture of the code to the left will direct your phone’s internet browser to www.aNbMedIa.coM where you read see the latest industry news, sign up for free weekly news blasts, access the content of Royaltie$, and much more.

Tomy Company agrees To aCquire rC2 CorporaTion tomy company and Rc2 corporation announced that they have entered into a definitive agreement pursuant to which tomy will acquire Rc2 through an all-cash tender offer and second-step merger valued at approximately $640 million. the transaction was approved by the board of directors of tomy. Rc2’s board of directors has also approved the agreement and recommended that Rc2’s stockholders tender their shares to tomy pursuant to the offer. tomy, through a u.s. subsidiary, will make an offer to purchase all outstanding shares of Rc2 common stock for $27.90 per share. the tender offer price represents a 30.9 percent premium to Rc2’s average closing stock price over the three-month period that ended March 9, 2011, and a 27.2 percent premium over the closing price of Rc2’s common stock on March 9, 2011. the tender offer is expected to close during the second quarter of 2011. the tender offer is subject to certain customary conditions, including the tender of a majority of the outstanding shares of Rc2’s common stock on a fully diluted basis. the transaction is not conditioned on financing. following completion of the tender offer, tomy will acquire the remaining outstanding shares of Rc2’s common stock for $27.90 per share through a second-step merger. under the deal, it is expected that Rc2’s brands will continue to be managed by the current leadership team.

niCkelodeon’s Brodsky To Be induCTed

inTo

lima Hall

of fame

leigh Anne Brodsky, president of nickelodeon consumer products, has been selected for induction into the International licensing Industry Merchandisers’ Association (lIMA) licensing Industry Hall of fame. the induction ceremony will take place on tuesday, June 14, 2011, at the annual lIMA opening night Awards ceremony during licensing show at the Mandalay Bay convention center in las Vegas.

A licensing professional for more than 25 years, Brodsky has broken new ground in many ways, most notably by popularizing multicultural franchises. one of Brodsky’s biggest professional accomplishments is creating a licensing juggernaut for preschoolers with nickelodeon’s latina character, dora the explorer. she spearheaded the development and growth of spongeBob squarepants. Additionally, Brodsky was also responsible for building the Rugrats and Blue’s clues properties into huge successes. And in the past few years, Brodsky broke new ground, licensing properties to healthy food categories, ranging from clementines to frozen edamame.

A passionate children’s advocate, Brodsky is a former member of lIMA’s board of directors and continues to co-chair lIMA’s charity committee. under her leadership, lIMA’s ambitious five-year, $1 million fundraising goal to benefit the children’s Brain tumor foundation (cBtf) was achieved in less than three years. she is an active board member of the tIA and cBtf.

6

ROYALTIE$ APRIL 2011

Jerry Leigh Acquires Fortune FAshions Jerry Leigh of California, Inc., an apparel design, manufacturing, and brand management firm, announced its acquisition of the assets formerly owned by Fortune Fashions. Fortune Fashions will operate as a division of Jerry Leigh and will continue to service its existing wholesale clientele.

PrimAry WAve unveiLs neW Web PLAtForm With synchtAnk Primary Wave Music, one of the largest independent music publishing, marketing, and management companies in the U.S., recently unveiled its new web destination, PrimaryWaveMusic.com. The site is the first to utilize SynchTank, sophisticated proprietary software for marketing and licensing that delivers broadcast-ready sound files directly to music supervisors, producers, and directors/editors for film, television, advertising, video games, web applications, rich media, or any outlet where music is needed.

Through Primary Wave’s SynchTank, registered users with proper clearance on PrimaryWaveMusic.com can search for music through descriptive characteristics such as mood, song key, tempo, and lyrics; create online video syncs of selected tracks set to uploaded video to simulate actual usage; and license and download songs through an automated process. Furthermore, users can save selected music into personal playlists and share, deliver, and track songs, searches, playlists, and video syncs to groups or individuals as they see fit.

cAA Licensing signs quincy Jones CAA Licensing announced that it has signed Quincy Jones as a client. The company will manage and develop a range of licensed consumer products across various categories on behalf of Jones.

His career in entertainment, spanning six decades, has seen him take on numerous roles, including artist, arranger, composer, conductor, instrumentalist, magazine founder, multimedia entrepreneur, producer (film, music, television), and record company executive, among others.

Jones is the most-nominated Grammy artist of all time with 79 nominations.

Discovery exPAnDs Pet business Discovery Communications announced plans to extend its Animal Planet-branded pet line with three new North American-based licensing deals with All for Paws, Fabuleash, and Pearlessence. This further expands the brand’s presence in the pet arena. All deals were brokered on behalf of Animal Planet by its licensing agent, The Joester Loria Group.

The companies will offer the following: All for Paws: A comprehensive collection of Animal Planet cat and dog accessories featuring beds, bowls, carriers, crates, feeders, kennels, collars, leashes, and toys. All for Paws will also offer an extensive range of both plush and rubber toys, as well as a number of eco-friendly items. The products will be available in pet and specialty stores this fall.

Fabuleash: This collection includes a variety of brushes, combs, scissors, clippers, nail files, and trimmers featuring non-slip, rubber-grip handles in bright colors synonymous with the Animal Planet brand. Additionally, Fabuleash will be developing pet life jackets for a 2012 launch.

Pearlessence: This leader in home fragrance is creating an assortment of novelty products, all with a lively scent to freshen any space. The Animal Planet air fresheners eliminate odors while featuring fashionable designs. The line includes adhesive Stick-Ons, Sniffers with suction cups, decorative fragrancers, and plush air fresheners.

ROYALTIE$ APRIL 2011

7

Beef ‘O’ Brady’s and Brand Central Beef ‘O’ Brady’s, a national chain of family sports pubs, has signed Brand Central LLC as its agency of record. With more than 200 restaurants nationwide, the Beef ‘O’ Brady’s partnership with Brand Central will extend the brand into retail categories. Products will include Beef ‘O’ Brady’s frozen meals, tailgate food, and sauces.

IMC lICensIng and terraCyCle TerraCycle, a world leader in collection and reuse of non-recyclable post-consumer waste, has signed a representation agreement with IMC Licensing. The agreement will market TerraCycle as an authentic green brand for use on other recycled products. It will also grant IMC Licensing the representation rights to TerraCycle partners’ pre- and post-waste being upcycled into new products. Potential categories include toys, housewares, pet and fashion accessories, and more.

MInd Candy and the fusIOn agenCy Social online gaming company Mind Candy has signed The Fusion Agency to represent Moshi Monsters in Australia and New Zealand. Moshi Monsters is a free virtual world of adoptable pet monsters for children ages 6-12. The Fusion Agency will work closely with current master toy and publishing partners, Hunter Toys and Penguin Books, to continue to build retail placement across all categories. Current products contain codes that unlock special features on the site, and plans are underway to release interactive feature plush, games, and more for this holiday season.

PatCh PrOduCts launChes WOrd shOut IPhOne aPP Patch Products is expanding its dice game Word Shout to iPhone, iPad, and iPod touch apps. Created

by Paze Interactive, Patch’s Word Shout is a word game for all ages, in which players have 30 seconds to create as many words as possible out of 10 letters. The app also gives players the option to compete against their friends using Game Center or the Pass-N-Play feature.

ChIquIta Brands and nanCy BaIley & assOCIates Chiquita Brands International has chosen Nancy Bailey & Associates to help extend its Chiquita and Fresh Express brands into non-food and new food categories throughout the U.S. and Canada. Through the agreement Nancy Bailey & Associates will work to extend their flavor profiles and value-added ingredients. They will also expand the Miss Chiquita logo and vintage artwork into product categories. The initiatives will focus on food, drug, and mass retailers to distribute products in a 2012 launch.

8

ROYALTIE$ APRIL 2011

Brando EntErprisEs signs rEnault auto, liu Jo JEans Brando Enterprises and its licensing representative Brand Sense Partners, LLC has signed international brands Renault Auto of France and Liu Jo Jeans of Italy. Renault Auto licensed clips of Marlon Brando’s On the Waterfront performance for use in a television campaign for its new Clio model. Liu Jo Jeans, through Getty Images, licensed candid images of the actor for a print advertising campaign and an in-store display campaign.

ClassiC MEdia and silvEr onE Classic Media has announced that it will expand its line of Lassie-branded pet-products through a renewed partnership with Sunshine Mills, Inc., maker of natural food and treats, and a new agreement with Silver One, manufacturer of home décor items that include pet bedding and accessories. Through the partnership with Silver One, the company has created a Lassie-branded line of dog bowls, leashes, toys, and dog apparel.

disCovEry CoMMuniCations and spuds, inC. Spuds, Inc., a producer of organic, all natural infant and toddler feeding products, and Discovery Communications have partnered to develop a line of feeding products under the new TLC Baby brand. The line will launch this spring, featuring products inspired by TLC network’s baby programming, such as A Baby Story and Bringing Home Baby. Products will include bowls, utensils, sippy cups, and more. It will be the first product launch under the new TLC Baby brand, dedicated to new and expecting parents. The deal was brokered by TLC Baby’s licensing agent Big Tent Entertainment.

paraMount piCturEs and H2o Paramount Pictures/ Nickelodeon Movies has partnered with h2O, a line of paper bottled natural spring water created by Refreshing Ideas LLC, to produce Rango-themed bottled water. The eco-friendly bottles, made through a process of hydro pulping, feature the title character of the new animated feature film Rango. Through the partnership with h2O, the film has released a customized television commercial, print advertisement, and online feature available at the h2O website.

nEtflix and CBs Corporation The CBS Corporation has signed a two-year non-exclusive agreement with Netflix allowing select programs to be streamed instantly through Netflix. Programs include episodes of current shows such as Medium, as well as complete seasons of classics, such as Frasier and Cheers. Netflix started to roll out the CBS programming in early April.

ROYALTIE$ APRIL 2011

9

Big idea entertainment’s

by Jennifer Lynch

I

n 1993, in the spare bedroom of animator Phil Vescher’s Chicago home, he and friend, and soon to be co-creator, Mike Nawrocki founded Big Idea Entertainment and produced the first episode of VeggieTales. The series was created to teach kids basic life lessons through religious themes, Bible verses, and a bunch of animated vegetables. Today, with the help of main characters Bob the Tomato and Larry the Cucumber, the program has grown to be the most successful and well-known global faithbased children’s brand. The brand has successfully been extended through licensing and live entertainment. As the top children’s faith-based property, VeggieTales now has more than 500 licensed consumer products.

In 2003, VeggieTales celebrated its 10th anniversary with the VHS/DVD release of its first feature film Jonah—A VeggieTales Movie selling just under 2.5 million copies.

That same year, Classic Media took ownership of Big Idea Entertainment, continuing to strengthen the VeggieTales brand while introducing the program to a larger audience.

In 2006, Classic Media signed a licensing agreement with NBC, Scholastic, ION Media Networks, and Corus Entertainment that brought the once direct-to-home video series to the qubo children’s programming block, a cable block that is shown on NBC Saturday mornings, Telemundo, and ION TV. The program has now entered its fifth season there. And recent events have high-

10

ROYALTIE$ APRIL 2011

Fast Facts VeggieTales has sold more than 54 million videos, 13 million books, and more than seven million CDs since its launch in 1993.

Films Jonah—A VeggieTales Movie (2002) and The Pirates Who Don’t Do Anything—A VeggieTales Movie (2008) are among the top 10 most successful faith-based films of all time. lighted VeggieTales’ continual growth in its fan base. In March, VeggieTales launched a new website, targeting the digital generation with highly interactive games and features, and released its latest Easter-themed DVD, Twas the Night Before Easter.

VeggieTales will again team up with Chick-fil-A in a VeggieTales Kids’ Meal promotion, brokered by Strottman International, the kids’ meal agency for Chick-filA, this August which is expected to reach up to 5 million consumers. The promotion will feature five CDs of VeggieTales adventures and VeggieTales themed Family Night Events in select markets. The latest roster of licensees includes Zoobies, American Puzzle Company, CTI Industries, Victory Designs, and Tabbies.

VeggieTales has sold more than two million song downloads on iTunes.

VeggieTales was the first full-length, 3-D animated video series to be produced in the United States.

Ex-American Idol contestant Melinda Doolittle lends her voice to a new VeggieTales character in Twas the Night Before Easter.

American Puzzle Company The American Puzzle Company will release a VeggieTales-inspired collection of its multi-level layered wooden puzzles and wooden toy trains. The collection, to launch this spring, will feature VeggieTales characters and themes.

CTI Industries CTI Industries will launch a line of VeggieTales-shaped Mylar balloons and latex balloons. The line will be available in grocery and mass market retail this spring.

Enesco Enesco has been a VeggieTales partner since 2009, developing VeggieTales products through its various categories and brands. Brands include Enesco’s Gund plush division and Gregg Gift, producer of faith-based gifts, home décor, and accessories.

Victory Designs In September 2011, Victory Designs, custom acoustic guitars manufacturer, will add VeggieTales to its line of children’s guitars.

There will be a Bob the Tomato guitar, a Larry the Cucumber guitar and a girl-friendly Sweetpea beauty guitar. Guitar sets will include a guitar, strap, carrying case, picks, and instructional book featuring Silly Songs from VeggieTales.

Zoobies Zoobies, the makers of the 3-in-1 convertible plush that transforms from animal to a pillow and blanket, will add VeggieTales characters Bob the Tomato and Larry the Cucumber to its Storytime Pals collection.

Xertrex Xertrex, makers of index and filing systems, will launch its first line of VeggieTales Tabbies this spring. The line will feature Bible indexing tabs, scratch ‘n’ smell stickers and bookmarks, temporary tattoos, removable wall art, and more.

ROYALTIE$ APRIL 2011

11

New products, new deals, and new trends this month in the licensing industry.

Starbucks Expands in Single-Cup Market

Momiji Creates Hello Kitty Collection Sanrio has partnered with UK-based company Momiji to release an exclusive Hello Kitty line of Momiji’s handpainted collectible message dolls. In what has been dubbed a “happy collision of cute,” the brands have combined styles to create six dolls and an array of zakka, a Japanese word meaning bits and pieces.

The dolls are approximately three inches tall and custom designed with Hello Kitty’s signature apparel and accessories.

Each doll contains a tiny sheet of paper, on which owners can write their own secret message.

The zakka collection will include classroom essentials such as a notebook, a gel pen, and a three-ring binder. Key chains and tiny enamel pins also allow owners to carry their Momiji with them. Dolls are currently available exclusively in Europe, Australia and Asia, and the zakka collection will be released in July.

GTech G2 Develops CSI Casino Games GTech G2, an interactive gaming software and service provider for poker, casino, and bingo entertainment, has signed a multi-year licensing agreement with CBS Consumer Products to develop online casino games based on CSI: Crime Scene Investigation; CSI: Miami; and CSI: New York. The games will be made available to GTech G2 licensees by the end of the year.

12

ROYALTIE$ APRIL 2011

Green Mountain Coffee Roasters (GMCR) signed an agreement with Starbucks to create a line of Starbucks and Tazo tea-branded K-Cup portion packs for use in the GMCR’s Keurig Single-Cup brewing system. This relationship, which covers manufacturing, marketing, distribution, and sales, will further expand Starbucks’ presence in the single-cup coffee market. The companies plan to make the K-Cup portion packs available through food, drug, mass, club, specialty, and department store retailers beginning fall 2011. The product will be available throughout the U.S. and Canada.

Smithsonian, Discovery Bay Team Up Discovery Bay Games has signed a licensing agreement with the Smithsonian Institution to create a line of Smithsonian products, which will include board and card games, activity kits, puzzles, and digital game apps. Games begin rolling out this month with the release of the Smithsonian Artifact or Fiction trivia app for Duo, Discovery Bay Games’ first integrated toy product for iPad. The guessing game will quiz players on topics such as history and science. The Smithsonian Institution is comprised of 19 museums, nine research centers, and more than 160 affliate museums worldwide.

Domino’s Pizza Named Official Pizza of NCAA Domino’s Pizza has entered a multi-year partnership, alongside The Coca-Cola Company, with Turner Sports and CBS Sports, granting it the rights to multiple National Collegiate Athletic Association (NCAA) properties, including March Madness. The agreement names Domino’s as the Official Pizza of the NCAA and its 23 national championships. This will be Domino’s first national partnership with collegiate athletics and its first national sports sponsorship since 2007.

Stride Gum Signs New Brand Spokesperson Kraft Foods brand Stride Gum, marketed as The Ridiculously LongLasting Gum, has signed a two-year agreement with professional athlete Shaun White to be the company’s official brand spokesperson. White, a champion skateboarder and Olympic gold medal snowboarder, will appear in Stride’s new program engagement initiatives, which will include PR efforts, consumer giveaways, and digital and social media campaigns.

Looney Tunes Aid in Learning to Read Warner Bros. Consumer Products has signed a licensing agreement with ClickN Kids, Inc., an online children’s software provider to create original online educational programs featuring the well-known Looney Tunes characters.

Together, they will launch a series of new programs aimed to teach kids how to read. The first of which will be Looney Tunes ClickN Read Phonics, authored by a nationally recognized research professor, Dr. J. Ron Nelson. The programs are created for children Pre-K through third grade and available in more than 100 countries worldwide.

New Barbie Items Skate into Stores Mattel has signed a new deal with Bravo Sports, a manufacturer of recreational and sporting goods, to create an exclusive line of Barbie skateboards and inline and quad skates for girls. Just like the many styles of Barbie, items also feature different Barbie designs including Barbie on the go and Sporty Barbie. Available at all Toys “R” Us stores, girls will also get a mini version of the item so Barbie can skate along with them.

ROYALTIE$ APRIL 2011

13

Small World Apparel Disney Consumer Products has teamed up with Nordstrom to release a line of children’s apparel, footwear, and accessories. It honors the 45th anniversary of Disneyland theme park’s well-known “It’s a Small World” attraction, featuring pieces inspired by the original mid-century artwork of Disney artist Mary Blair. It will consist of seasonal collections, each representing a different country, starting with its Japanese-inspired spring line. The line will also feature philanthropic pieces through a collaboration with Toms Shoes and Feed Projects to benefit UNICEF.

Ballerina Underwear HIT Entertainment has partnered with Fruit of the Loom to launch a new line of Angelina Ballerina underwear.

Based on the CG animated PBS Kids television program, Angelina Ballerina: The Next Steps, Fruit of the Loom will create and market the girls’ underwear apparel in sizes 4–8.

South African Apparel Beetle Bailey Wear Fashion industry’s Darren Romanelli, founder of streetwear brand DRx, and Hitoshi Tsujimoto, head of Japanese-based apparel company The Real McCoys, have collaborated to create a collection of high fashion menswear inspired by the comic strip Beetle Bailey. With the support of the cartoon’s creator Mort Walker, the line seeks to fuse Tsujimoto’s Americana, military style with Romanelli’s recreation of classic properties for a look that is true to the Beetle Bailey brand. The limited-edition collection includes jackets, sweaters, pants, T-shirts, bags, hats, and shoes. The line debuted at the January fashion event PROJECT New York.

14

ROYALTIE$ APRIL 2011

46664, a global HIV/AIDS prevention and awareness campaign launched by the Nelson Mandela Foundation and named after Mandela’s prison number, has signed a licensing agreement with Seardel Investment Corporation Limited, a South African-based clothing and textile manufacturer, to launch a global apparel brand. The line, to be designed by Seardel division Brand ID, will feature both men’s and women’s wear and will be the first global apparel brand to come out of South Africa. The 46664 line will debut locally in Johannesburg in August 2011, with international distribution set to begin in 2012.

Jamie Salter

by Chris Adams

t

he series of profiles that appear on this page in every issue of Royaltie$ is called mavericks in the market and its purpose is to highlight some of the best, brightest, and original-thinking people in the licensing industry. i can say, though, that never before has the “maverick” signifier applied as well as it does to this issue’s profile on Jamie Salter, chairman and CeO of authentic Brands Group.

Salter has a history of spotting emerging industries, finding the marquee brands in that industry, and creating success. He sharpened his chops in the emerging snowboarding industry of the 1980s and ’90s as he created ride, which became the No. 2 brand in the industry. Snowboarding has since become a sport that receives mass attention.

He went on to co-found Hilco Consumer Capital in 2006 and quickly built it into a midtier equity firm that acquired brands such as Polaroid, linens ’N things, Sharper image, and Halston, among others. Salter’s latest endeavor is authentic Brands Group, which was formed last year with the goal to acquire and manage brands in the apparel, sporting goods, action sports, home, celebrity, entertainment, and consumer electronics segments.

For the company’s first acquisitions, he used his experience in emerging brands and applied it to the mixed martial arts (mma) industry. He built a stable that included known mma brands such as Sinister, Silver Star Casting Company, iron Star, and Hitman Fight Gear, in addition to the sport’s marquee brand, tapout.

When Salter first became interested in the

16

ROYALTIE$ APRIL 2011

mma business, he attended a fight with his sons and their friends. “everybody was wearing a tapout shirt,” says Salter. “my son told me tapout is the No. 1 brand in the business. i said, ‘if we’re going to get into this business, we need to be the Nike of mma.’” the deep pockets provided by authentic Brands Group’s parent company leonard Green & Partners (one of the largest private equity firms in the U.S.) provided Salter the capital necessary to acquire this marquee brand.

However, to be up to Salter’s standards, there was a lot of work to be done to the tapout licensing program, from consolidating style guides to eliminating unnecessary products. “to me, a brand is a brand and it needs to be looked after and dealt with with kid gloves,” says Salter. “if you look at Nike, everything is the same all over the world. its trade show booths are the same, its packaging is the same, and its look and feel is the same.” the next kid-gloves project for Salter was the acquisition, with partner NeCa, of the intellectual property of marilyn monroe llC. this licensing program needs to be cleaned up and refocused. Salter wants to take the brand from a souvenir business into the glamour that marilyn monroe was known for.

“With the right partners, marilyn monroe will become one of the biggest celebrity brands in the world within the next 24 months,” says Salter. “it is very important getting the right partners around the world to make sure it works. the program will not be about shot glasses or posters, but more about apparel, fra-

Authentic Brands Group and NECA acquired the intellectual property of Marilyn Monroe LLC.

grance, personal care, and home goods.”

Salter has already signed a deal with Christian Dior for monroe to be in a fragrance-related ad campaign. and the advertising-related plans don’t stop there.

“We’re living in a world today where digital media is becoming an important factor,” says Salter. “You will see marilyn monroe in a digital format back on screen within the next couple of years. Don’t be surprised if you see her starring in a movie or an ad campaign.” in less than a year, Salter has provided authentic Brands Group with a bedrock of brands from which to build the company.

Combining the deep pockets of leonard Green & Partners with Salter’s experience and ambition, it is clear that the mma brands and marilyn monroe are just the beginning.

The he staf staff fff of aNb aN Media would like to express our sincere condolences to the people of Japan during this time of g great reat tragedy resulting from the recent ear earthquake thq quake uak and ensuing tsunami.

We W e encourage enco everyone ever yone to donate organizations: during this crisis sis to the ffollowing ollow wing or rganizations: ganiza ganizations: Global Giving www.globalgiving.org www .globalgiving.org Text JAPAN T ext JAP PAN AN or 50555 505 to make a $10 donation by text message World W orld V Vision ision www.worldvision.org www.worldvision.org Text T extt 4JAP 4JAPAN PAN AN or 20222 202 to donate, or call toll free 888-56-CHILD Save the Children: Emergency Relief for Japan Quake www.savethechildren.org/japanquake www .savethechildren.org/japanquake T Text ext JAP JAPAN PAN 202 to donate, or call toll free 800-728-3843 AN or 20222 The American Red Cross: Japan Earthquake ake & Pacific T Tsumani sum sumani Relief www.redcross.org www .redcross.org Text T e REDCROSS or 90999 to make a $10 donation by text message ext

The Pendulum Swings Back to Brands

by Laurie Leahey

G

enerating more income may be one reason why major cor- ing director at The Licensing Company (TLC). “We look at the brand porations choose to enter the realm of brand licensing, but DNA so that the product accurately reflects the brand values. And it’s not the only reason, and it’s certhen we overlay that with the right retail distainly not the No. 1 reason. tribution and the right creativity.”

“They’re getting into licensing to reach It’s important to know what the goal of a consumers in a new way, provide more brand licensing program is and what the brand is all touchpoints with consumers, engage conabout. For example, does the company want sumers with their brand in different ways, proto reach a new demographic through brand vide a greater breadth of solution to their core extensions? What is that demographic? “We consumer, drive consumers to the core brand, conduct research to better understand where and provide the brand with new locations the brand has permission to extend and idenwhere it can be seen,” says Michael Stone, cotify the categories that have the most growth founder and president/CEO of Beanstalk. potential,” says Ross Misher, CEO of Brand Creating new touchpoints for consumers Central. “Additionally, we evaluate cateand reaching consumers in new ways is realgories that have a degree of separation from ly why these established brands get into the core business but go beyond the client’s licensing. David Reeder, vice-president of core competency.”

GreenLight Rights, says that generating revCreating a strategy that will produce someenue can be an indirect effect of brand thing more than just a brand name on a product extensions, but it is never the driving force. can really help a licensing program see success “You might be able to drive more sales of at retail. “To succeed in this market, brands need your product if people are reminded of [the to be strategic,” says Debra Joester, president of core product] or are thinking about or are The Joester Loria Group (TJLG). “On-brand Sperian Protection produces Stanley-branded somehow considering it when they hadn’t initiatives need to be developed and executed. personal protection equipment, such as the AM/FM/MP3 Earmuff with audio input jack. The before,” he says. “So it’s an indirect effect.

Consumers are increasingly selective, so prodStanley brand is represented by Beanstalk.

You’re generating more sales for your product has to deliver on the brand promise and offer uct, but off the [licensed] merchandise, consistent product quality and competitive you’re not making that much cash. The effort is significant to get prices for the given channel of distribution.” [a licensing program] off the ground,” Reeder continues. “There’s Having the help and input from the licensor can be a boon to the a lot of effort that goes into it, and then the return can be great rel- licensing program. Beanstalk represents the Stanley brand for licensative to a business that is just in the business of licensing or a rel- ing and receives a lot of support from the Stanley company. atively small brand. But with these huge brands, it’s really pennies Beanstalk’s Stone says that if you placed Stanley’s core products on relative to what they make in their core business.” the same table as Stanley’s licensed products, you wouldn’t be able to Launching a licensing program does take a lot of effort on both the tell which products were core and which were licensed because they part of the licensor and licensing agency. Both participants must focus are so closely aligned. “Stanley nurtures and encourages cross-protheir efforts first on creating a strategy for the brand extension. motions among licensees and with Stanley itself,” Stone says. “They “We look at it strategically,” says Angela Farrugia, group manag- hold a major licensee summit every year. The Stanley industrial

18

ROYALTIE$ APRIL 2011

The Licensing Company represents Reckitt Benckiser brands, such as Woolite. Woolite fragrance-free dry cleaning sheets are from licensee Dry Cleaner’s Secret.

design department will work with licensees to help innovate features for their products.

It’s a well-managed, collaborative partnership among Stanley and its licensees.”

might have been enough value a few years ago, now the brand really has to be attached to a very compelling product that’s Retail Presence going to sell because Communicating an established brand’s retailers don’t have a message through licensed products is helpful lot of patience for stuff to consumers. But it’s not just the consumers that’s not working.” that the major corporations must win over The retailers know what they with their licensed products. Retailers hold a want and what they want is product “that lot of power, which makes getting placement delivers brand value, product quality, price on store shelves tough. Retail consolidation points, marketing support, consumer affinis leaving less room for more products. “The ity, and a track record of success,” says number of potential retail outlets has declined TJLG’s Joester. “Therefore, gaining market over the past few years and so, if you can get entry remains challenging, especially when in, it’s great, but you’re fighting a lot more competing against category leaders and people to get onto fewer shelves,” says private label.”

Ramez Toubassy, president at Brand Sense Private label continues to be popular Partners. “You have to have a really good among some consumers, if only for the lower value proposition. Where the brand alone price, so retailers will continue to allocate space for private label brands. However, there is a cycle of private label dominance over brands, and at any time the pendulum might be swinging its way back toward established brands. “We’re now getting requests from retailers to bring them brands because they know that the brands have excitement attached to them and followers attached to them,” says TLC’s Farrugia.

“They need that mix of brands and private label to create the dynamic of what’s happening on their retail floors.”

One of the reasons why a consumer would choose a branded product over a private label This vintage Pepsi T-shirt is from licensee Fifth Sun. product is self-expression. As the price points The Joester Loria Group represents the Pepsi brand. for branded product come down closer to the

price points of private label, consumers can more affordably express their affinity for a brand. “Consumers want something that says something about who they are as a consumer because they purchased this item versus that item,” says GreenLight Rights’ Reeder.

A Changing Industry The need for established brands at retail isn’t the only thing that is changing in the licensing landscape. More and more savvy companies are realizing just how beneficial licensing can be. “It’s only in recent years that licensing has gotten a serious seat at the marketing table,” says Beanstalk’s Stone. “Licensing is a great communications tool, a great marketing tool, and, in this age of viral marketing and the social networking and all of that, it’s a very authentic way to communicate a brand message. The consumer sees a licensed product and votes by buying it or not.”

Stone also notes that the way licensing deals are made has changed over the past few years due to the economy. “There’s more collaboration, more support from licensors, more creativity and less aggressiveness in deal-making, and more of a partnership,” he says. “These things that happened over the past 18–24 months will stick, even as the economy recovers. I don’t think we’re going to go back to the old ways of doing business.”

ROYALTIE$ APRIL 2011

19

Brand lIcensInG

by Laurie Leahey

For those in the brand licensing business, the main impetus is creating new touchpoints for consumers—giving followers of the core product a new way to interact with the brand and reaching out to new consumers. Below is a sampling of some of the latest licensed brand products to hit the market.

Beanstalk Beanstalk represents Land Rover for licensing. The Land Rover S1 mobile phone from Sonim Technologies has a two megapixel camera and built-in GPS, among other features. The phone is waterand impact-proof, which means it can be submerged in water to a depth of three feet for 30 minutes and can withstand being dropped onto hard surfaces from up to seven feet.

GloBal Icons Global Icons signed an exclusive worldwide representation agreement with Ford Motor Company. Global Icons will support Ford’s strategic brand initiatives by increasing brand exposure through engaging product collections worldwide. The agency will bring the Ford brand names into new merchandising frontiers, seeking out licensing partnership opportunities to build branded merchandise collections for the die-hard automotive enthusiast and the everyday consumer looking for quality products. The brand extension development will focus on lifestyle products such as apparel, collectibles, home goods, and sporting equipment, as well as essential items such as automotive accessories, mobility products, electronics, and tools.

Brand sense Partners Brand Sense Partners represents the Chrysler/Dodge Ram brand. The agency is looking for Ram licensees in several new product categories, including hunting gear, camping gear, fishing gear, hand tools, mobile applications, video games, workwear/boots, and grills/grilling products.

20

ROYALTIE$ APRIL 2011

the Licensing cOMpany The Licensing Company (TLC) is working with two new brands this year. The first is the Chrysler/Jeep program, which TLC acquired last year. The agency is putting together a new program for the Chrysler/Jeep brand. The second new brand is MasterLock. TLC says it will be announcing the first partners for that licensing program soon.

the JOester LOria grOup The Joester Loria Group represents the Pepsi brands for licensing. The Pepsi and Mountain Dew brands continue to expand in apparel. Amp Energy-licensed cell phone and PDA chargers are sold in more than 6,500 convenience and gas station stores nationwide. The licensee is TNT Sales Co. Soft goods for Amp Energy are licensed to Form Athletics, a division of K-Swiss, for the Amp Energy co-brand with Urijah Faber, the mixed martial arts champion.

MOda A new line of footwear targeting men, women, and young adult outdoor enthusiasts will be in stores this spring under the Bushnell Outdoor Products brand. Footwear licensee BBC International has leveraged Bushnell’s innovation, quality, performance, and reputation for superior products that enhance the experience of outdoor and sports enthusiasts for a quality, stylish, innovative, and functional collection of footwear. Bushnell Footwear will be distributed in sporting goods, department stores, specialty sports stores, footwear chains, and more.

Brandgenuity The Pabst Brewing Company licensing program grew to more than 20 licensees over the past year with products in mass and specialty apparel, barware, collectibles, tailgating food, skateboards, seasonal costumes, and more. This year, Brandgenuity plans to expand the retail reach of the licensing program by developing key launches at Walmart, Walgreens, Target, Zumiez, and specialty boutiques and department stores nationwide. Pictured here is a T-shirt from apparel licensee Original Retro Brand.

ROYALTIE$ APRIL 2011

21

Sweet Treats Offer Steady Sales

by Chris Adams

C

andy licensing is a category that has a strong-yet-quiet appeal. They don’t garner the profile of tentpole entertainment properties and they don’t incite the sort of rabid pride that sports properties do, but candy properties have longevity, nostalgia, and feel-good factors that allow for the growth of slow, steady, and strong licensing programs.

Some of the candy brands that are popular today have been in the market for more than 100 years. For instance, the Hershey bar was invented in 1900 and the Tootsie Roll was invented in 1896. These brands have a long history of offering children a sweet reward and for bringing adults a moment of fun in the middle of their busy days. It is this fun factor that fuels a lot of the good feelings that drive sales of licensed products bearing candy brands.

“It goes back to the role candy plays in our lives,” says Cynthia Hall Domine, president of Synchronicity. “As a kid, we got candy as a reward for being good. We had candy when we were doing fun things like attending birthday parties and celebrating holidays. It tastes delicious. Candy is sweet and wonderful. Everything about it is happy.”

You’d be hard-pressed to find a kid today who doesn’t have a favorite sweet treat. While that plays a big role in the growth of candy sales, nostalgia among adults is a more prevalent factor in driving sales of licensed products.

“Our nostalgic candy brands bring instant gratification for children and sweet memories for adults,” says Karen Spitz, president of Licensing Link. “Our licensees are coming up with new ways to bring some of the fondest memories back to consumers by even adding scents.”

Spitz makes an interesting point. While there is no shortage of visual cues that trigger nostalgia and good feelings to inspire the purchase of products bearing candy brands, that is not the only lure in the category’s tackle box. Because of the way the human brain is wired, scent can play a big role in triggering memories and powerful responses.

That’s not to say that strong visual cues are not also playing a role in the candy licensing category. Many candy brands have design elements that clearly distinguish them in the marketplace. These design cues are being leveraged for licensing.

The Licensing Company (TLC) has been using the striking visual cues of Jelly Belly colors as a springboard for licensed products and

22

ROYALTIE$ APRIL 2011

The latest addition to The Licensing Company’s Jelly Belly portfolio is a line of manual and electric ice shavers by Focus Products Group.

other licensors are following suit. Synchronicity is leveraging the array of Tootsie Pop colors for its licensing program with Earloomz, which is manufacturing solid colored earpieces bearing various Tootsie Pop colors. Beyond colors, design does play a strong role in today’s competitive marketplace.

“To capture Airheads’ attributes of playfulness, irreverence, and fun, Perfetti Van Melle partnered with leading creative agency Parham Santana to develop a design-driven style guide,” says Aaron Speigeland, director, brand management at Beanstalk, which represents the Airheads brand for licensing.

Sweet Certainty The greater candy industry will be on display next month as the 2011 Sweets & Snacks Expo will be held in Chicago May 24–26.

This year’s show, reflecting the strength of the industry, will feature the biggest show floor in eight years. Nearly 500 confectionary and snack companies will have their wares on display.

It is interesting to note that the candy industry is doing well, even in the midst of an uncertain economy.

According to a January 23, 2011, report from the National Confectioners Association, sales for confectionary grew 3.9 percent during the latest 52week period. Of course, the low price points and feel-good factor do make them ideal for uncertain times.

“Candy brands are great during times of insecurity,” says Synchronicity’s Hall Domine. “We saw that around 9/11 and we see it now in recessionary times.

Licensing Link brokered a Candy is something that makes you deal for Flix Candy to happy. It is non-threatening and univerproduce a line of Dippin’ Dots confectionary treats. sal and makes you feel better.”

Candy & Gum Sales $ Sales Percent Change vs. Year Ago Channel

Percent of Change

Food, Drug, & Mass (excluding Walmart): +3.9% Food:

+4.8%

Drug:

+2.5%

Convenience:

+1.2%

source: National Confectioners Association/ January 23, 2011 IRI Retail Sales Summary

After all, for a dollar, you can grab your favorite candy bar and have a tasty treat that can make you feel better and give you a moment of escape from even the busiest of days. That being said, in this age of expanding waistlines and concerns over the spread of obesity, it is clear that candy shouldn’t be an everyday thing.

That is where licensing comes into play to establish a more constant relationship with consumers.

“Even though you are a fan of Jelly Belly, it doesn’t mean you eat them every day,” says Angela Farrugia, group managing director at TLC, which manages the robust Jelly Belly licensing program. “You can recreate the enjoyment of that experience for consumers with licensed products.”

With brands in the candy space, managing a licensing program is more of a marathon than a sprint. Often, they are slowly and methodically built up to ensure strategic rollout. And once a program becomes well established, managing it becomes less about signing on new licensees in new categories.

“There aren’t many spaces to fill in the Jelly Belly licensing program,” says TLC’s Farrugia. “Our focus now is on helping those licensees coordinate to work together.”

By strategically managing a candy licensing program, licensors hope to ensure that their candy programs have the same longevity that so many of the candy brands have—giving generation after generation an opportunity to interact with these feel-good brands.

ROYALTIE$ APRIL 2011

23

Candy Licensing

by Chris Adams

While candy properties may not gain the high-profile attention that tentpole entertainment properties do, they do have a track record for strong and steady sales. Nostalgia and a feel-good factor are what drive sales in this category. Candy is thought of as fun, delicious, and sweet and the licensing programs surrounding these brands reflect this. Below is a sampling of the latest deals in the candy licensing category.

Hershey’s Play Visions introduces a line of Hershey’s licensed LED-flashlight key chains for the Hershey’s Chocolate Bar, Reese’s Peanut Butter Cups, Hershey’s Kisses, and Mr. Goodbar brands. Also new is a line of candy wrapper bags from Nahui Ollin. These handbags and accessories are made from more than 4,000 individual candy wrappers utilizing a Mayan crafting technique.

The Licensing Company A few new deals help round out TLC’s Jelly Belly licensing program. The items include a line of scented bubbles by Little Kids (shown), dessert toppers by Vita Food Products, and the newest additions to the line, manual and electric ice shavers and ice treat syrups from Focus Products Group.

Synchronicity Global Icons Global Icons has signed a couple of new deals for the Cold Stone Creamery property. Koko’s (aka A&A Global) will offer a line of regular and sugar-free hard candy replicating some of Cold Stone’s Signature Creations flavors. Also new is a line of chocolate truffles from Turin with flavored fillings based on Cold Stone’s Signature Creations flavors.

24

ROYALTIE$ APRIL 2011

Synchronicity’s stable of candy brands includes Tootsie Roll, Tootsie Pop, Sugar Daddy, Sugar Baby, Junior Mints, Dots, Charleston Chew, and Blow Pops. Licensees include Nahui Ollin for bags (shown), Earloomz (Tootsie Pop solid-colored earpieces), Advanced Graphics (standups and wall clings), Dalmatian (footie pajamas), Fetch (T-shirts and fleece for dogs), and Play Visions (LED key chain flashlights).

Beanstalk Beanstalk signed on licensee Jel Sert to launch a line of Airheads Fruit Squeezers beverages. In additional Airheads news, Hybrid Apparel will extend its juniors and boys graphic Tshirts to include mass market distribution.

Licensing Link The biggest candy licensing news from Licensing Link is the deal it signed with Flix Candy to produce a line of Dippin’ Dots confectionary treats. For Dubble Bubble, Home Expressions will be launching a line of home décor, furnishings, and accessories in 2012. Also, Nahui Ollin has been signed to create a line of handbags for the retro Dubble Bubble brand.

Mars Retail Group Mars Retail Group has signed CandyRific to produce Halloween and Christmas items for the M&M’s brand. Shown is one of the M&M’s Halloween Sticker Stampers. Also on the way for Halloween are M&M’s Halloween Candy Fans, and M&M’s Halloween Embossed Tins. For Christmas, M&M’s Candy Dome Key Chains, M&M’s Flashlight Key Chains, M&M’s Christmas Embossed Tins, M&M’s Christmas Sticker Stampers, M&M’s Christmas Fans, M&M’s Christmas Coin Bank, M&M’s nine-inch Dispensers, and M&M’s Christmas Chute Dispensers.

Hasbro Properties Group Hasbro has signed an agreement for Gamesformation to produce Twister, Trivial Pursuit, Monopoly, and Scrabble games with chocolate elements within them.

Lisa Marks Associates Lisa Marks Associates has signed new deals for its host of candy brands, which includes Peeps, Dum Dums, Mike and Ike, Hot Tamales, Warheads, and Smarties. New for Peeps is a deal with Dalmatian to produce a line of adult footie pajamas. Zap Tops will be introducing Peeps wind-up and pull-back toys, radio control toys, and collectible figures. In addition, Jel Sert has introduced a line of Peeps marshmallow-flavored freezer pops (shown). Jel Sert will also be expanding its Warhead offerings by adding Warheads Sour Squeezer drinks to its line.

ROYALTIE$ APRIL 2011

25

Infant & Preschool Licensing Isn’t Child’s Play

by Chris Adams

T

aking a look at the infant and preschool categories, it is evident that compelling programming and colorful characters attract the youngest of fans, but what is sometimes neglected in the category is the role that parents play in acting as a gatekeeper to content and licensed products for their babies, toddlers, and preschoolers. In order to achieve success, licensors and licensees must offer content and merchandise that appeals to children and parents, alike. And lines of communication between licensor and parent have never been more open.

“We start with content,” says Maura Regan, senior vice-president global consumer products at Sesame Workshop. “Sesame Street is developed on two levels—for children and their caregivers. Research has shown that when parents engage in content with their children, the results are more effective.”

In taking interest in a property, parents examine it for educational content, values, and entertainment, in addition to their child’s interest in the property. And sometimes, like with Sesame Street, there is a built-in feel-good factor because the parents enjoyed the property and programming themselves as children.

“Enduring properties are passed down from generation to generation as parents share a piece of their childhood with their own children through beloved characters,” says Pam Westman, executive vice-president, the Americas, HIT Entertainment.

That being said, properties must remain fresh to attract today’s parents and children. Today’s parents are media savvy and have the choice of a vast array of entertainment options for their children, so even a classic property has to appeal to a more modern sensibility. Licensors also have to take into consideration that today’s parents’ media and product-consuming patterns are much different from years past.

For instance, the media landscape has shifted considerably over the years. Licensors not only have to secure TV placement for their entertainment properties, but also have to make content available when and where parents want it. Apps are one of the fastest growing segments in the preschool market. And content is sometimes available in venues such as iTunes and video on demand.

“The media landscape has changed dramatically over the past five years,” says Maureen Taxter, senior vice-president of Ludorum. “It

26

ROYALTIE$ APRIL 2011

The Chuggington Wooden Railway Double-Decker Roundhouse is by Learning Curve, which is Ludorum’s master toy licensee for the property.

is a challenge because there are so many platforms for kids to consume media. The old platform of kids sitting down to watch their favorite TV series on a regular basis is not the norm anymore. The opportunity is that there are so many great interactive platforms where you can connect with your fans.”

In addition to offering digital content, today’s media landscape provides licensors many opportunities to connect and communicate with parents. Twitter, blogging, and Facebook were mentioned by those interviewed as means of keeping lines of communication open with parents.

Even outside the world of entertainment properties, communication between licensor and parent is crucial. “We talk to moms around the world in all manner of research forums to keep our pulse on what’s important to mom and what products can help make her life easier in caring for her baby,” says Peter Snajczuk, vice-president, marketing & consumer products licensing at Fisher-Price. “This gives us a tremendous advantage in knowing what products to bring to the market and when.”

In addition to allowing licensors and licensees to communicate with parents, the myriad media channels also offer many opportunities for parents to communicate with one another.

“Testimonials and recommendations from other parents is always important,” says Debra Joester, president of The Joester Loria Group.

Classic Entertainment

“While the biggest properties continue to dominate, nontraditional properties are coming from publishing, apparel, and media brands,” says Joester. “The key is to find a retail home for these brands and not to try to compete head on with the big franchises. This provides opportunities for organic growth and a chance to deliver very meaningful results.”

Developmental

While there are certainly other Elements One of the biggest factors partypes of properties that perform ents look for in properties and well in the infant and preschool products for their children is eduspace, entertainment properties are cational and developmental elefar and away the most prevalent. It ments. They want their kids’ enteris occasionally possible, even in tainment time to be productive. In this economically sluggish environthis day and age, it is doubtful that ment, for new properties to garner an infant or preschool property airtime and shelf space. Ludorum’s could even make it to shelf withChuggington property is a good out offering ways to enhance the example. This year will see a fullplay time for children. scale ramping up for that property’s “Parents want their kids to licensing program. But, it is the rare The Animal Planet Baby Ocean Animal Set—I’ll Huff and I’ll Puff, a Toys “R” Us private label item, includes an array of sea life replicas, as well as a piece property that can pull that off. of coral. The Joester Loria Group manages Animal Planet’s licensing program. be kids and have fun but, at the same time, we know when kids “We believe that the Chuggington property has the potential to be around for a very long time,” says are engaged that is when they are learning,” says Ludorum’s Taxter. “Parents get that.”

Ludorum’s Taxter. “We are building it as a franchise property.”

Most important for a licensing program is for licensors to ensure “Franchise,” “evergreen,” and “classic” are three adjectives that are often applied to the properties that thrive in the infant that the licensed products their licensees produce are up to the standards that the core brand maintains. and preschool space.

“We carefully select our licensees and all products go through a “The preschool category is increasingly dominated by what we now consider classic properties,” says The Joester Loria Group’s rigorous product development process,” says HIT’s Westman. “We Joester. “The properties tend to be boy- or girl-specific and are, for the maintain constant communication with our partners to ensure all most part, based on an emotional relationship the child has developed products hold up the integrity of our brands, as well as the highest standards of quality and safety for consumers.” with the property and the characters.”

With licensors keeping a close watch on their brands, parents can feel For many other types of properties, it is an uphill battle trying to gain shelf space from beloved, established entertainment properties that better about the licensed products they buy for their children. Leaving all have the resources of large multinational corporations behind them. The of the nitty gritty to their parents, kids can focus on what’s most important—play (and maybe learning something along the way). key for these properties is to fight for retail space on their own terms.

ROYALTIE$ APRIL 2011

27

Infant & Preschool Licensing

by Chris Adams

Licensors and licensees in the infant and preschool space offer properties and products for a dual audience. Sure, the products offered have to appeal to young children. However, with this age group, parents decide what properties their children will interact with. Often these properties offer educational and developmental elements that parents approve of. Below is a sampling of the latest infant and preschool offerings from an array of licensors.

Sesame Workshop The big news at Sesame Workshop is Hasbro taking the reins as global master toy licensee for Sesame Street. The range of toy and game products in Hasbro’s line is expected to feature more characters than had been featured in previous lines for the property.

Nickelodeon For Nick’s Dora the Explorer, a new range of items from Fisher-Price are on the way. The products include Magical Fairy Dora (shown), Dora Dress-Up Collection Doll, Flower Girl Dora, Dance & Sparkle Dora, and the Dora the Explorer Learn Through Music TouchPad Software.

28

ROYALTIE$ APRIL 2011

Fisher-Price Building on the success of its Lullaby CD that was offered in collaboration with Jewel, Fisher-Price will be working on a second album. The next offering will feature a collection of original and traditional sing-along songs.

Additional albums in the works include a Christmas stories album with Bob Newhart and a piano lullaby album with Jim Brickman.

Classic Media Raggs Raggs LLC is doing a direct-toCVS publishing program to demonstrate the publishing potential for the Raggs brand. The books are manufactured

by Blue Socks Media, Raggs LLC’s parent company. Titles include Raggs Rocks and Raggs Activity & Sticker Book.

Classic Media recently announced new partners for Little Golden Books.

Newly signed licensees include Alexander Doll Company (dolls), Paper Magic Group (costumes), and Karmin (puzzles and games).

HIT Entertainment HIT Entertainment signed a deal with Ontel Products Corporation and CJ Products LLC to create a line of Thomas & Friends-licensed Pillow Pets. Shown is a Thomas Pillow Pet. Also from HIT, this spring Jakks Pacific will introduce plush and novelty items based on the Timmy Time show, which airs on Playhouse Disney.

The Joester Loria Group In the Baby Genius Favorite Counting Songs DVD, kids are introduced to numbers through a musical and magical adventure. Kids visit a karate class and a rowing club, as well as practice cheerleading moves and march in tune to the marching band.

Each song focuses on a number from one to 10.

Lamaze A line of Lamaze books is on the way from licensee Learning Curve.

With age-appropriate content developed by a noted child development expert, the line of first books designed for infants from birth up includes soft and board books with high-contrast colors, engaging characters, and simple stories. The books focus on social skills such as sharing, taking turns, and cooperation.

Ludorum The Chuggington Wooden Railway system is the centerpiece of Learning Curve’s Chuggington line. The Chuggington Wooden Railway Over & Under Starter Set is a 25-piece set that features the 2-in-1 Clock Tower where kids can stack pieces to create a twolevel tower or separate the pieces to create two stand-alone tunnels. The set includes two wooden engines (Wilson and Koko), a Vee figure, and a figureeight track layout. Additional items in the line include Double-Decker Roundhouse, and the All Around Chuggington Set.

CPLG Copyrights Promotions Licensing Group (CPLG), a Cookie Jar company, handles licensing for Cookie Jar’s properties, which include Richard Scarry’s Busytown. Items from master toy licensee The Bridge Direct include the Busytown Deluxe Town Hall Playset, which is the centerpiece of the Busytown Play System.

Big Tent Entertainment Big Tent brokered a deal on behalf of Discovery Communications for the TLC Baby property. Spuds, Inc., will create a line of natural and organic infant and toddler feeding products.

Spuds’ products are created from reclaimed potato starch. The line with Spuds is the first launch under the new TLC Baby brand.

ROYALTIE$ APRIL 2011

29

Hasbro

fuNGopLaY

New appoiNtmeNts

New appoiNtmeNts

Hasbro appointed margie ChanYip as vice-president of global publishing. she will create new ways to bring Hasbro brand stories to consumers worldwide, from traditional print to e-book formats. previously, Chan-Yip was viceMike Vogel president of global licensing for the walt Disney Company where she launched and drove the english language learning retail business first in China, then in other countries, in addition to running the walt Disney publishing business for all worldwide english language territories.

Hasbro studios, the Los angelesbased production and distribution division of Hasbro, inc., split its Linda Steiner boys/action and girls/preschool creative teams into separate series development and current programming groups. mike Vogel was promoted from executive director, boys and action programming, to vice-president, development. He will be charged with reimagining all boys, action, girls, and preschool creative efforts by the studio. Vogel previously served as director of animated programming at sony pictures entertainment.

Linda steiner, who had served as senior vice-president, girls and preschool programming, has taken on a new role as senior vice-president, current programming. she will manage a growing number of studio-produced series once they are on the air. steiner joined Hasbro studios from warner bros. animation, where she was senior vice-president of creative affairs.

Kathy page, vice-president of production, will lead an expanded team to support the restructured departments with production and post-production services, while continuing to assist in oversight of outside production service relationships.

funGoplay, a sports-themed virtual world, announced its management team. Composed of industry veterans from the digital and marketing space, the team includes former Nickelodeon executives Chris romero as chief technology officer and sean mcevoy as the director of production, along with Kelli mcNamara as the head of strategic partnerships and marketing and Jana moncrief as the director of marketing. romero will guide the company’s long-term technical vision and cross-platform strategy to help it grow to its full potential. He joins funGoplay from companies such as Nickelodeon online, addicting Games, and tVLand online. prior to funGoplay, mcevoy held various positions headlined by his tenure as head of games production for Nickelodeon Kids and family Digital. His expertise in games production will help translate the lineup of interactive initiatives into compelling new products. mcNamara will focus on forging compelling partnerships with likeminded businesses and organizations. prior to joining funGoplay, mcNamara served as senior vice-president of lifestyle marketing at Cornerstone/fader and uGo entertainment. moncrief will oversee marketing in order to build the brand to its greatest potential. she previously held the position of senior site manager/online marketing director at HarperCollins Children’s books, lead digital editor at Disney worldwide publishing, and senior editor at aoL Kids.

30

ROYALTIE$ APRIL 2011

CHiLD’s pLaY CommuNiCatioNs marie baKer, DireCtor of soCiaL meDia Child’s play Communications promoted marie baker to director of social media. she will be responsible for expanding and managing the agency’s social media immersion across facebook, twitter, blogs, and other channels. baker will continue to serve as director of team mom, the agency’s proprietary network of mom review-bloggers, as well as its offshoot, music moms, a music industry-specific program targeted to mom bloggers. baker joined Child’s play in 2009.

FreMaNtLeMedia eNterprises

disNey coNsuMer products

executive appoiNtMeNts

Jessica duNNe, executive vice-presideNt, MoM aNd babies

FremantleMedia enterprises (FMe) announced four key executive appointments within the North american licensing group. david Luner, formerly the senior vice-president of consumer products and interactive at FMe, has been promoted to executive vicepresident of consumer products, interactive and mobile. Luner’s new role expands his current responsibilities beyond the representation of FremantleMedia North america’s portfolio of tv brands, such as american idol and the x Factor, and FMe’s third-party tv and nontv brands, such as rebecca bonbon, to include an upcoming slate of new children’s content, licensed and original game brands, and the digital content development division. olivier delfosse, formerly the director of interactive at FMe, has been promoted to vice-president of interactive, mobile and digital content. in his new role, delfosse will spearhead the continued expansion of FremantleMedia in the gaming space, including social media gaming, as well as building on recent successes in the digital content and mobile brand extensions. chris donnan has been promoted from senior manager to director of live events. donnan will be responsible for producing touring shows and budgeting across all areas of FMe’s live events, such as the travel versions of the price is right and other branded shows. in addition, dhivyah ramanath has joined the FMe team as senior manager of consumer products: softlines. ramanath will be responsible for growing the apparel, accessory, and publishing businesses. before joining FMe, ramanath worked at brand central LLc as a licensing manager.

aNb

Media

New appoiNtMeNts aNb Media hired Jennifer Lynch as assistant editor. Lynch, a journalism major, is a recent graduate of penn state. she also minored in French and spent a semester in Montpellier, France. in addition, Laurie Leahey has been promoted to editor, expanding her role writing for timetoplayMag.com in addition to Toys & Family Entertainment and Royaltie$. Leahey, who was previously assistant editor, joined aNb Media in 2006.

disney consumer products (dcp) appointed Jessica dunne as executive vice-president, mom and babies. she is responsible for establishing and growing the disney baby brand and implementing new marketing and communications strategies developed with new moms in mind. in this role, dunne reports directly to andy Mooney, chairman, dcp, and oversees the identification of new product categories and develops unique consumer propositions that drive loyalty and can grow into lifetime customer engagements for disney baby across the walt disney company. previously, dunne was executive vice-president, global licensing at dcp, overseeing global licensing businesses, which include fashion & home; food, health, and beauty; infant; stationery; and toys.

NbcuNiversaL New appoiNtMeNts the Nbcuniversal television, dvd, Music, and consumer products Group promoted ed prince to vice-president, business and legal affairs. in addition, christopher Lucero and drew rowley have joined the department as directors of global licensing. prince, who joined the department in august 2007, will continue to oversee business and legal affairs for the department, including contract preparation and negotiations, as well as compliance. christopher Lucero will be responsible for developing licenses worldwide for Nbcuniversal properties including syfy, the weather channel, Nbc News, MsNbc, cNbc, and classic Nbc-genre properties within the Nbcu tv catalog. rowley will have day-to-day oversight of television consumer products business for all current and past programming for Nbc, usa Network, and the Nbcuniversal television catalog.

ROYALTIE$ APRIL 2011

31

May 4–6

PlayCon

toyassociation.org

Hyatt Regency Scottsdale Resort & Spa

Scottsdale, Ariz.

15–17

Surtex

surtex.com

Jacob Javits Convention Center

New York City

15–18

National Stationery Show

nationalstationeryshow.com

Jacob Javits Convention Center

New York City

23–26

BookExpo America

bookexpoamerica.com

Jacob Javits Convention Center

New York City

24–26

Sweets & Snacks Expo

sweetsandsnacks.com

McCormick Place

Chicago

June 7–9

Electronics Entertainment Expo (E3)

e3expo.com

Los Angeles Convention Center

Los Angeles

14–16

Licensing International Expo

licensingexpo.com

Mandalay Bay Convention Center

Las Vegas

16–19

Toyko Toy Show

toys.or.jp

Tokyo Big Sight

Tokyo, Japan

22–26

Origins Game Fair

originsgamefair.com

Greater Columbus Convention Center

Columbus, Ohio

July 21–24

Comic-Con International

comic-con.org

San Diego Convention Center

San Diego

26

Royaltie$ BRand ShowcaSe

anBmedia.com

the altman Building

new yoRk city

SepteMber 23–26

ABC Kids Expo

theabcshow.com

Kentucky Exposition Center

Louisville, Ky.

27

time to Play Fall ShowcaSe

timetoPlaymag.com

the altman Building

new yoRk city

1–2

MIPJunior

mipworld.com

Palais de Festivals

Cannes, France

3–6

MIPCOM

mipworld.com

Palais de Festivals

Cannes, France

4–6

TIA Fall Toy Preview

toyassociation.org

Dallas Market Center

Dallas

OctOber

TIME TO PLAY SPRING SHOWCASE APRIL 28; THE ALTMAN BUILDING, NEW YORK CITY; WWW.TIMETOPLAYMAG.COM LICENSING SHOW 2011 JUNE 14–16; MANDALAY BAY CONVENTION CENTER, LAS VEGAS; WWW.LICENSINGEXPO.COM ROYALTIE$ BRAND SHOWCASE JULY 26; THE ALTMAN BUILDING, NEW YORK CITY; WWW.ANBMEDIA.COM

32

ROYALTIE$ APRIL 2011

TIME TO PLAY FALL SHOWCASE SEPTEMBER 27; THE ALTMAN BUILDING, NEW YORK CITY; WWW.TIMETOPLAYMAG.COM TIA FALL TOY PREVIEW 2011 OCTOBER 4–6; DALLAS MARKET CENTER, DALLAS; WWW.TOYASSOCIATION.ORG TOY FAIR 2012 FEBRUARY 12–15; JACOB JAVITS CONVENTION CENTER; NEW YORK CITY; WWW.TOYASSOCIATION.ORG

by Nancy Lombardi

h Arris interActive’s equi trend brAnd s urvey 2010 The EquiTrend study evaluates brands based on the following: equity, customer connection, commitment, energy, brand behavior, brand advocacy, and trust.

The key, says EquiTrend, is equity, which provides an understanding of a brand’s overall strength and is determined by a calculation of familiarity, quality, and purchase consideration. The study polled 19,708 U.S. consumers ages 15 and over between January 12–21, 2010. The total number of brands rated was 1,151.

Category Airlines AppArel/Accessories AppliAnces Automotive tires bAnKs bAtteries beer beverAges cAndy cAr rentAls cAsuAl dining chAin restAurAnts cell phones computer-relAted products consumer electronics credit cArds cruise line greeting cArds heAlth insurAnce hotels insurAnce lAundry detergent liquor luxury Automotive mAnuFActurers mediA mAgAzine/television merchAndise mobile provider motor oil motorcycles movie production compAnies news service non-luxury Automotive mAnuFActurers non-proFit corporAtions phArmAceuticAl compAnies quicK service restAurAnts resorts/AttrActions retAil gAsoline tissues toilet pAper tools toys wine

34

ROYALTIE$ APRIL 2011

HigHest ranked in Brand equity southwest Airlines hAnes AppArel KitchenAid smAll AppliAnces michelin Automobile tires wells FArgo bAnK durAcell bAtteries blue moon beer cocA-colA hershey’s Kisses chocolAte cAndy enterprise rent-A-cAr olive gArden lg cellulAr phones microsoFt soFtwAre sony televisions visA princess cruises hAllmArK greeting cArds blue cross/blue shield heAlth insurAnce hilton hotels stAte FArm insurAnce tide liquid lAundry detergent grey goose vodKA lexus vehicles nAtionAl geogrAphic mAg/discovery chAnnel the home depot verizon wireless pennzoil motor oil hArley-dAvidson motorcycles dreAmworKs movie studio AssociAted press (Ap) toyotA vehicles susAn g. Komen For the cure Johnson & Johnson heAlthcAre subwAy restAurAnts disney world speedwAy gAsoline Kleenex FAciAl tissues chArmin toilet tissue crAFtsmAn tools nintendo wii yellow tAil wine