If the recent actions of Consumer Packaged Goods (CPG) companies are any indication, licensing deals may be where future profits reside for brands. According to FoodDive, "brand licensing deals are rapidly evolving into a lucrative source of revenue for CPGs aiming to grow their business, build equity and maintain or expand a product's relevancy in an industry beset by mounting competition and changing consumer tastes." In 2019, food and beverage licensing deals were worth $16.5 billion globally. The top food company in terms of licensing its brands for product use in 2020 was Hershey, generating $1.7 billion in licensed sales. Companies that license their brands see both short and long-term gains from the practice.
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