Sun-Maid Pushes Beyond Raisins with Licensing Deal
Iconic food brand Sun-Maid has appointed Earthbound Brands as its exclusive licensing agency. The move is a strategic push to leverage its brand trust to expand into new food, beverage, and lifestyle categories as the grocery market becomes more competitive.
This move follows a period of significant transformation for the 112-year-old raisin cooperative under former CEO Harry Overly, who took the helm in 2017. His stated goal was to achieve $100 million in growth by making the brand more relevant to younger consumers and reversing a decade-long decline in raisin consumption. Under Overly's leadership, Sun-Maid made its first-ever acquisition in its 109-year history in 2021, purchasing the organic baby and kids' food brand Plum Organics from Campbell Soup Company. This strategic purchase was a direct move to connect with family households and a new generation of snackers. During his tenure, the company also surpassed multiple sales records and was named one of the U.S. Best Managed Companies by Deloitte and The Wall Street Journal. The push to diversify comes as the California raisin industry faces considerable headwinds. Production has fallen from over 400,000 tons annually to under 200,000, dropping the U.S. from the world's top producer to fourth. Farmers are increasingly replacing raisin grapes with more profitable crops like almonds and pistachios, and the industry faces intense price competition from subsidized Turkish imports. Sun-Maid currently holds more than 25% of the U.S. raisin market share, but the overall market is challenged by shifting consumer tastes. Younger demographics, in particular, often perceive raisins as outdated compared to a growing variety of newer snack options like vegetable chips and protein bars. Earthbound Brands has a history of extending legacy brands into new product areas. The agency has previously developed food and beverage programs for WW (formerly Weight Watchers) in partnership with General Mills and was recently tapped to expand the Newman's Own brand into new grocery categories. This strategy of licensing a well-known brand name into new food categories is a well-trodden path. Brands like Baileys have successfully licensed their flavor profile for ice cream, while restaurant brand Nando's has expanded into grocery stores with a line of sauces and seasonings, engaging consumers beyond their primary offerings.
