LOCKSTEP PARTNERS - Case Studies

CASE STUDIES

Innovation & Growth via Licensing

WEBER GRILL SEASONINGS

A licensing deal representing over $50 million at retail in three years.

Business Challenge

ACH was the distant #2 player in spices and seasoning, up against McCormick’s, the 800-pound gorilla in the category. Opportunities for growth were few and far between.

The grilling trend was on fire, and so were the seasonings McCormick developed for use with the grill. ACH sought a piece of the action, but had to figure out how to carve out some space against such a powerful adversary. Creating a new brand from scratch was expensive, and there was guarantee that such a brand would resonate with key grilling demographics in search of authenticity.

A licensing arrangement could be the ideal solution…but what brand? After some initial research, it soon became apparent that no other brand brought more credibility to grilling than Weber®.

A licensing deal was born, by partnering Weber’s iconic brand with ACH’s R&D, manufacturing, sales and distribution, to create an entirely new source of revenue for both companies.

Cooperative Marketing

ACH deployed its design and sourcing experts to developed a proprietary cap, which brought the recognizable Weber® domed grill top to life in the spice & seasoning aisle.

Weber® was a value-added licensor, providing access to their consumers and insights, making ACH’s marketing investments more effective – so that both parties win.

ACH leveraged Weber’s consumer database to drive awareness and trial of Weber Grill seasonings
Coupons were distributed to consumers with every Weber.com e-commerce order
ACH reached over 130,000 loyal Weber grill consumers each week.

Product Expansion

What started first as dry seasonings, ultimately expanded to grinder blends, marinade mixes, rubs, barbeque sauce and a unique non-stick spray safe to use directly on the grill.

Breakthrough Results

Within three years, Weber® became the #2 grilling seasoning brand with 60% ACV and $50 million in retail sales.

New Product “Sweet Spot” Achieved via

Innovation and Licensing Partnership

Business Challenge

This consumer packaged goods client had sophisticated manufacturing plants with excess capacity, a capable sales force, and industry leading R&D. They sought to introduce new, innovative products that could drive revenue and absorb some of that capacity.

The challenge, was that their current brands lacked the stretch to credibly support such innovations.

Partnering For Growth

Lockstep Partners identified a short list of leading brands with relevant equities, ultimately engaging with Cinnabon, the makers of the famous, indulgent Cinnamon Buns.

We negotiated a win/win Licensing Agreement for products that spanned three categories; baking, spices and syrup. Our client put their R&D to work at develop several great tasting products that helped bring the Cinnabon mall experience into consumer’s homes.

The Outcome

Retailers welcomed the combination of great, innovative products plus a well-recognized and well-regarded brand.

1 +1 = 3! Open H2O helped drive more value than either partner could achieve on their own.

Former Anheuser-Busch Snack Brand

Returns to Store Shelves

Use of a heritage brand, allows start-up to compete with mega brands

The Challenge

A new salty snack startup needed to figure out how to successfully compete against the 800 pound gorilla in the category; a market leader with several brands with annual sales of more than a billion dollars.

The Solution

The idea…fight well-known brands with another well-known brand.

Enter EAGLE®.

A former Anheuser-Busch Snack brand well-known for higher quality, innovative products like honey-roasted peanuts, snack mix and potato chips.

EAGLE® snacks were off the for the market 11 years, but was still remembered fondly. Lockstep Partner’s Managing Partner negotiated with P&G, the new brand owners, to secure a license.

This was a true win/win with a new revenue source for P&G and a strong foundation for the upstart company to build from.

Rather than having to build a brand from scratch (a very expensive proposition!), the startup found it much simpler to instead reactivate the latent brand awareness, strong positive equities and general fondness for a brand that was once a market leader.

A yummy line of new products was successfully introduced.