Allied Domecq has appointed The Licensing Company (TLC) to develop branded products in what the company claims is the first deal of its kind in the drinks industry.
Allied has already experimented in a limited way with brand extensions, using the Tia Maria brand for confectionery, cakes and dairy products and generating a turnover of more than &£40m.
In the early stages of the brand extension program, TLC will focus on Allied’s Kahlua brand, although other brands will follow.
Allied Domecq vice-president of new business innovation David Hayes was appointed six months ago to look at the issue of brand extension. He says that he sees Allied’s brands as fashion items, ripe for extension.
TLC global brand manager Daniel Avener says: “We look after brands such as the Lord of the Rings and Michelin, but this is the first time we have worked with a global drinks company.
“We are looking at gift accessories, clothing and food products, though no specific announcements have yet been made.”