is a globally recognized company that has been a well-known name for many years. Approaching its 130th anniversary, this large confectionery and snacking corporation prides itself on a varied portfolio of more than 80 brands, which include Reese’s, Hershey’s, Jolly Rancher, Kit Kat, Heath, Hershey’s Kisses, Hershey’s Cookies ‘N’ Cream, Hershey’s S’mores, York, Reese’s Pieces, and Twizzlers. The Hershey Company, holding the 27th position, has developed strong licensing programs for the majority of its brands.
Ernie Savo, the President of Global Licensing and Business Development at The Hershey Company, has overseen the company’s licensing division for over twenty years. During his tenure, there has been significant growth, both in traditional retail sectors and more recently, in unconventional areas. One notable achievement was the partnership with Falcon’s Beyond, which secured licensing rights to create Hershey-themed location-based experiences (LBEs) worldwide. In a recent interview with License Global, Savo discussed his career path and the progression of Hershey’s licensing efforts.
License Global: How did you begin your journey in licensing?
Ernie Savo started his marketing career at Toys ‘R’ Us, concentrating on consumer promotions and brand strategy. Transitioning to Nickelodeon, he specialized in marketing partnerships aimed at children, refining his skills in developing collaborative promotions across various media platforms. His early exposure to licensing sparked his interest in the field. When the opportunity arose to lead the licensing division at The Hershey Company, Savo seamlessly integrated his prior experience in partnership marketing with the new venture of licensing for Hershey.
The licensing program at The Hershey Company has experienced substantial growth, with retail revenue hitting $1.9 billion in 2023. What significant changes have transpired since your tenure began at the company?
Initially met with concerns regarding potential conflicts with core business strategies, Hershey’s licensing program has transformed into a strategic tool for enhancing the brand. By utilizing shopper data, the company now quantifies the positive influence of licensed products on consumer behavior, showing an increase in purchase frequency and overall spending. Establishing enduring partnerships with top-tier licensees has been crucial in propelling growth and reinforcing brand loyalty for The Hershey Company.
Collaborations with renowned brands like NCAA, Olympics, Warner Bros., and others have been fundamental to Hershey’s licensing pursuits. What motivates these successful partnerships?
Consumer-centricity is at the core of Hershey’s approach to licensing. Each collaboration is carefully crafted to resonate with consumers, aligning with their preferences and occasions. By injecting creativity into promotional programs, Hershey ensures its brands stand out during significant events, fostering consumer engagement and loyalty. Teaming up with equally iconic brands ensures a seamless integration that disrupts the market and captivates consumers.
Integrating Hershey brands into unconventional categories such as health and beauty, as demonstrated in the Hershey x Caboodles collaboration, highlights the brand’s adaptability. How does this diversification contribute to Hershey’s licensing strategy?
While food and beverage remain the primary focus for Hershey, expanding into general merchandise categories like health and beauty enhances the brand experience for consumers. These extensions provide additional touchpoints for consumers to engage with Hershey’s timeless brands, enabling them to express brand loyalty in diverse ways.
With successful ventures in streetwear collaborations like Crocs and Sprayground, will Hershey pursue more opportunities in apparel and accessories licensing?
Successful collaborations in streetwear have significantly boosted brand visibility for Hershey. The company remains open to exploring new avenues in apparel and accessories licensing to amplify brand recognition. By partnering with industry leaders and emerging brands, Hershey aims to broaden its presence in the fashion realm while staying authentic to its brand essence.
Hershey’s exploration into unique food collaborations, such as Chips Ahoy! and Hershey’s, has been positively received by consumers. Can we anticipate more innovative partnerships in the snacking sector?
Hershey’s dedication to offering diverse snacking experiences propels its continuous exploration of new collaborations. By incorporating its brands into innovative snacking formats, Hershey caters to evolving consumer preferences and nurtures brand loyalty. The success of existing collaborations like Chips Ahoy! validates the appeal of such partnerships, indicating a promising future for snacking-related licensing initiatives.
Looking forward, what can we expect from Hershey in terms of licensing strategies and initiatives?
Hershey’s upcoming licensing endeavors will concentrate on expanding into location-based entertainment, meeting the growing consumer interest in experiential interactions. By strategically aligning with various entertainment avenues beyond traditional retail, Hershey aims to boost brand visibility and consumer engagement. The imminent launch of traveling experiences and destination resort attractions underscores Hershey’s dedication to innovation and consumer-centric brand interactions.
In conclusion, what guidance would you provide to individuals starting a career in licensing?
For aspiring licensing professionals, comprehending consumer behavior and market trends is crucial. Identifying untapped categories that align with brand values and long-term objectives can steer strategic growth. Cultivating robust, collaborative relationships with licensees built on trust and shared values fosters mutually beneficial partnerships. By prioritizing consumer insights and forging strategic alliances, licensing professionals can navigate the dynamic landscape of brand licensing successfully.