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Economic Uncertainty Creating the Perfect Storm for Food & Beverage Manufacturers

July 15, 2025

Insights from Broad Street Licensing Group, the premiere food and beverage brand licensing agency

A TLL Feature Report

For nearly three decades, Broad Street Licensing Group has operated with a laser focus on one mission: unlocking the untapped retail potential of food and beverage manufacturers through strategic brand licensing partnerships.

As economic headwinds create new challenges for manufacturers, the team at Broad Street, the premiere Food and Beverage licensing agency, explains why this is the perfect time for manufacturers to embrace brand licensing as a competitive advantage.

The Economic Reality: Opportunity Disguised as Challenge

While the global economic forecast has been painting a concerning picture with tariffs and geopolitical issues threatening growth, Broad Street sees unprecedented opportunity for Food & Beverage manufacturers.

The very factors creating economic pressure are exactly why manufacturers need to lean into licensing partnerships more than ever. As retailers become more selective about shelf space and consumers grow more discerning about purchases, licensing a recognized brand name isn’t just an advantage, it can be a powerful tool against competitors.

Broad Street’s Peter Cross says SeaPak’s collaboration with Budweiser was a prime example of how smart licensing can help manufacturers expand their business, even in the toughest of times.

“A critical market dynamic is emerging as fewer manufacturers are willing to take risks right now, which means dramatically less competition for licensing opportunities,” says Peter Cross, Vice President of Strategic Partnerships at Broad Street. “The brands are there, desperate to find manufacturing partners with retail distribution. For manufacturers bold enough to act, it’s creating a perfect storm of opportunity.”

 

The Strategic Imperative: Why Pulling Back is a Potentially Dangerous Move

In uncertain economic times, the instinct for many manufacturers is to pull back and focus solely on their core business. While this approach might seem safe, economic uncertainty doesn’t eliminate competition; it intensifies it. Food & Beverage manufacturers who thrive are those who differentiate themselves when everyone else is playing it safe.

Real-world results demonstrate this principle. As one example, Broad Street’s partnership between client SeaPak and Budweiser created a co-branded frozen beer-battered seafood line that exemplifies strategic thinking during uncertain times. SeaPak already had an excellent product and consumer trust built over decades, but by partnering with Budweiser, a brand every consumer recognizes, they created something retailers couldn’t ignore, and consumers had to try. The result was expanded distribution and standout shelf presence precisely when competition was fiercest.

The Consumer Truth: Brand Recognition Wins When Budgets Tighten

Despite inflation pressuring consumers toward cheaper options, branded products continue to be sought after by consumers.

The key insight for manufacturers is that while consumers may be more price-conscious, they’re looking for brands they trust. When budgets are tight, consumers want absolute confidence their purchase won’t disappoint. A recognized brand name provides that essential assurance, especially for manufacturers looking to establish themselves in a competitive marketplace.

Broad Street’s work with OWS Foods illustrates this dynamic perfectly. By partnering OWS with established brands like Lodge Cookware and Pioneer Woman, the agency didn’t just create new products, they opened entirely new distribution channels and retail relationships for OWS Foods. Buyers trust known brands, especially when times are uncertain, and consumers gravitate toward familiar names that promise quality and satisfaction.

The Licensing Advantage: Why Hesitation Equals Lost Opportunity

Many manufacturers remain hesitant about licensing because of economic uncertainty, but this hesitation represents exactly why Food & Beverage manufacturers should act now.

After working exclusively in food and beverage licensing for almost 30 years, Broad Street has never seen a more favorable environment for manufacturers ready to embrace strategic partnerships.

Subway’s licensing collaboration saw a new range of sauces hitting grocery shelves, benefitting both the restaurant brand and the manufacturer.

“The current landscape is ideal for manufacturers,” says Cross. “Brands are actively seeking manufacturing partners, and with less competition from other manufacturers who are focusing on their own products, manufacturers have the advantage. Brands and retailers are looking for products that stand out, and consumers want familiar names they can trust. Every factor is positioned in favor of manufacturers willing to explore licensing right now.”

The traditional barriers that have historically deterred manufacturers, including concerns about complexity, resource requirements, and uncertain returns, are precisely why agencies like Broad Street have become indispensable. Full-service brand licensing agencies like Broad Street handle everything from identifying perfect brand partnerships and collaborations to managing day-to-day program execution, allowing manufacturers to focus on what they do best: creating great products.

Broad Street’s Professional Advantage: Why Their Expert Guidance Matters More Than Ever

Economic uncertainty demands professional expertise in licensing partnerships.

With almost 30 years of exclusive focus in Food and Beverage brand licensing, Broad Street has proven time and time again how their invaluable insight leads to impactful brand partnerships that continue to create real retail impact, versus those that merely look impressive on paper.

Industry relationships—spanning from major retailers to major brands looking for manufacturing partners —become crucial assets when market conditions shift rapidly.

Emerging Trends: The Future Belongs to Strategic Partnership Leaders

The biggest trend reshaping Food and Beverage licensing is that fewer manufacturers are entering the space. As manufacturers become more selective about partnerships and retailers demand proven performance, this dynamic creates a smaller pool of serious manufacturers in licensing and significantly larger opportunities for those who use licensing as a growth tool.

The key is partnering with the right brand. It’s easier said than done, but when executed well, it can lead to explosive growth potential.

Specific growth areas are emerging across the industry. Shelf-stable sauces and dressings are expected to see explosive growth in 2025. Healthier ice cream, once dismissed as an oxymoron, is now a booming category. From high-protein formulas to cutting-edge fat replacers, brands are reshaping indulgence without sacrificing texture. But potential exists across every grocery category.

Looking Back: 2024’s Winning Strategies Point to Today’s Opportunities

Broad Street client OWS Foods, a top private label manufacturer and distributor of seasonings, sauces and mixes, sought to expand its retail presence and deepen its connection to consumers through licensed brand acquisition and co-branding, like this one with The Pioneer Woman.

Cross-category brand extensions dominated 2024’s most successful licensing programs.

Restaurant brands increasingly moved into retail grocery, beverage brands expanded their shelf presence through strategic partnerships, and even lifestyle brands entered consumables.

The common thread connecting successful programs was strategic brand extension that made intuitive sense to consumers.

“The most successful programs transcended simple brand name placement on products” says Cross. “They created authentic connections that enhanced both brands involved, delivering genuine value to consumers while opening new revenue streams for manufacturers.”

The Market Reality: Why Action Beats Caution

As economic uncertainty continues reshaping the Food and Beverage landscape, one truth emerges clearly: The manufacturers who will thrive are those who recognize that standing still is moving backward.

Every challenge in today’s market, from retail consolidation to consumer caution to increased competition, creates exactly the conditions where strategic brand partnerships become essential rather than optional.

Established brands are actively seeking manufacturing partners that are bold enough to embrace brand licensing with competition for licensing opportunities at historic lows. Retailers are hungry for products that stand out from commodity alternatives, and consumers are gravitating toward trusted names that promise quality and satisfaction.

For Food & Beverage manufacturers looking to gain competitive advantage, the fundamentals have never been more aligned.

The brands are waiting. The opportunities are unprecedented. And the manufacturers who act decisively will capture market position that cautious competitors surrender through inaction.

The question isn’t whether licensing makes sense in uncertain times. The question is whether manufacturers can afford to face this uncertainty without every possible advantage at their disposal.

Broad Street Licensing Group has been the premiere food and beverage brand licensing agency since 1997, exclusively focused on unlocking retail potential through strategic brand partnerships. With a track record of award-winning programs and industry-leading client success, Broad Street serves as the essential bridge between established brands and manufacturing partners with retail distribution. For manufacturers ready to gain the competitive edge that only strategic brand licensing can provide, the time to act is now. Contact Broad Street by clicking THIS LINK.

Filed Under: Licensing Agencies, Editorial, U.S., Open Content, Top Story, TLL, Corporate, North America, Food and Beverages, Worldwide, Recent Headlines, Archive, Food/Beverage, Articles, Featured Tagged With: SeaPak, The Pioneer Woman, OWS Foods, Lodge Cookware, Subway Sauces, Manufacturer licensing strategies, Peter Cross, US economy, Broad Street Licensing Group, Budweiser

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