Ford Climbs the Beanstalk
Detroit-based Ford Motor Co.’s nascent iDentify licensing unit in June acquired The Beanstalk Group, New York City. Ten-year-old Beanstalk handles licensing programs for such huge brands as Coca-Cola, McDonald’s, and Harley-Davidson.
The merged company will be based in Detroit but operate under The Beanstalk Group name. It will manage the programs of all Ford brands including Aston Martin, Jaguar, Ford, Volvo, Lincoln, and Mercury. Ford generates about $800 million per year from licensed merchandise.
Ford started in this direction in spring 2000, when it formed iDentify as a joint venture with promotional products distributor Ha-Lo Industries, Niles, IL. The business plan was to first organize Ford’s own merchandising efforts, then begin offering services to other companies. IDentify ceo Linden Nelson bought out Ha-Lo’s minority interest in May and began looking for another partner, according to a report in The Wall Street Journal.
Nelson will head up the new company as ceo, with Ford group vp-global business Jim Donaldson serving as chairman. Beanstalk co-founders Seth Siegel and Michael Stone will be executive vps and retain minority interests.
“Ford has about 650 licensees, so our first step is to review, to determine what categories are well-provided and learn from our top performers,” says Siegel. “I’m not saying we’ll need to do this, but we may look at what licensees might be better to shed.”
“This transaction is part of a broader effort at Ford to maximize the value of its considerable assets, as well as expand the reach beyond automotive to new companies and industries,” Donaldson said in a statement.
Vevey, Switzerland-based Nestlé S.A. signed a global sponsorship agreement with MTV International, London, the first such deal for the network. The pact makes the Nescafé brand global sponsor of: the MTV Video Music Awards, which reaches 260 million households in 139 territories; the Making the Video series; and various competitions and events. Marketing will include on-air, online, and on-pack components.
Procter & Gamble, Cincinnati, granted a license to Goody Products, Inc., Peachtree City, GA, to market products in North America under the Cover Girl brand. The line includes 50 hairstyling and fashion accessories such as barrettes and compact mirrors and will roll out to the mass-merch channel in January.
Jakks Pacific, Inc., Malibu, CA, extended its licensing deal with Nickelodeon, New York City, to include use of a broad range of the network’s properties on such items as play compounds, writing instruments, mechanical-design toys, back-to-school stationery, and lunch boxes. Nickelodeon credits Jakks with turning its Gooze product line into the second-best selling toy in the U.S. in the second half of 2000.
