An Interview with Peter Cross, VP of Broad Street Licensing Group
By Gary Symons
TLL Editor-in-Chief
These are difficult times for the food and beverage industry, which faces multiple challenges including stubborn inflation, roiled supply chains, the uncertainty caused by tariffs and trade wars, and the growing impact of GLP-1 weight-loss drugs.
It’s all added up to a less than stellar year for revenues, with more challenges expected through 2027 due to soaring prices for diesel fuel.
As a result, says Broad Street Licensing Group VP Peter Cross, the industry has also experienced a pullback in licensing activity, due largely to an ongoing sense of uncertainty.
“Food and beverage retail brands are bracing for the unknown that is just beyond the horizon and are focusing solely on their core products to stay afloat,” Cross says. “However, there is always one strategy that proves time and time again to be a powerful source of growth — even in the worst of economic times — and that is brand licensing.”
Cross notes that news about grocery inflation has been dominating headlines recently with experts continuing to warn that it will begin accelerating over the coming months. Gas prices are high, but the bigger issue for food companies is the soaring price of diesel, driven by fuel shortages caused primarily by the war with Iran.
According to American Trucking Associations, which lobbies in Washington for major trucking companies, nearly 73% of America’s 1.27 billion tons of cargo freight was moved by diesel trucks in 2024, and it now costs a lot more to fill those trucks with diesel.
The American Automobile Association says the average price of a gallon of diesel in the United States was $6.39 on Sept. 17, up from an average of $5.97 on Sept. 10, and $3.70 a gallon on Sept. 17, 2025.
Higher diesel costs are driving increased grocery prices for consumers around the world, because food is generally delivered to stores in diesel-powered trucks.
As a result, Cross expects food inflation to get worse before it gets better.
“Those continued elevated fuel costs can start to wear down retailers and suppliers that — until now — have been able to keep price increases stable for many products,” Cross explained.
The GLP-1 phenomenon is also taking a toll on food company revenues. The revolutionary new diet drugs work by reducing the cravings for food, and the United States in particular has already seen a dramatic impact on the demand for snacks, desserts, and sweet beverages.
A report released in September by Brand Finance predicted the increasing adoption of GLP-1 will hit some food companies hard, particularly those producing snack foods and beverages. Brand Finance says the world’s 100 most valuable food brands face a $73 billion risk from an uptick in consumers using GLP-1 drugs to lose weight.
Those brands make up $278 billion in value, and Brand Finance says about one-quarter of that value could disappear due to adoption of GLP-drugs. The report said potato chip maker Lays is the most exposed food brand globally, with the report finding $6.8 billion of its $15.1 billion brand value at risk. PepsiCo’s five major snack brands collectively have $14.1 billion in exposure, the consultancy firm said.
Cross says this confluence of challenges is obviously a huge concern for food companies, and some have responded by pulling back from licensing partnerships.
“It can be incredibly difficult for brands to see beyond what is in front of them: rising costs, fewer sales as consumers tighten their spending,” Cross says. “But what consumers want at the end of the day is for their purchases to mean something. They want value, and not in just how they can save money, but in the quality of the products they purchase.
“Even in the worst economic times, consumers continue to buy the brands they trust, even if at a less frequent rate.”
Recent data from the market research firm Circana confirms a slowdown in the food and beverage industry, but also indicates the value of licensed products. Circana’s data showed the U.S. retail food and beverage industry grew 2.2% in the first half of 2026, and the company projects that growth will settle into a range of 2% to 3% in 2027, a return toward pre-pandemic norms after several years of outsized growth.
The issue for food companies is that while revenue increased, that increase was less than the inflation rate for food, and actual volume of sales was flat. Circana has also noted that more consumers are opting for less expensive private label or house brands, but conversely, licensed brands still largely outperformed other products.
Cross says that’s a key point to keep in mind for food and beverage producers, as licensing can be a key advantage in getting new products on grocery shelves.
“Food and beverage brands that are struggling to find shelf space – or keep the space they currently have – fail to see that licensing another brand or intellectual property can be a powerful tool for their growth strategy,” Cross says. “Food and beverage brands that adopt this strategy and do it correctly tend to set themselves up for not only short-term growth, but also for long-term viability in the grocery marketplace.”
The tricky part is not so much whether licensing is worth doing, but rather trying to figure out which opportunities make sense. That’s where Cross says it’s vital to find and work with a licensing agency that understands the food and beverage category.
“For many brands, the brand licensing process feels unclear at the start,” Cross explains. “How does one identify the right brands and trends to license? How do you navigate the contracts involved? What is the process for product development, retail rollout, etcetera? There are many moving parts, how does one allocate the right resources to do it all correctly?
“That’s where bringing in experts makes all the difference,” he adds. “Not only is brand licensing a wise investment, but so is making sure you have the right people on your side.”
Cross said he’s also seen that when there is a downturn in the industry, some companies decide the way they’ll save money is by trying a DIY (Do-It-Yourself) approach to licensing.
That can work if you have an experienced licensing team, but it’s a recipe for disaster if you don’t.
“Budgets are tighter than ever, and bringing in the wrong people or team can be costly,” Cross explained. “Sure, anyone can do anything on their own, but most don’t realize how arduous the process can be when trying to do it alone.
“A great example is building a website. Sure, anyone can build one, but when you hire a company that knows what they’re doing, it’ll come out much better and with less effort than if you tried to learn to do it on your own.
“The same can be said about brand licensing. If you don’t have experts working to build your brand licensing program, you might be literally leaving money on the table.”
There are a number of top licensing agencies that focus on the food and beverage category, and Broad Street Licensing Group is certainly one of the agencies at the top of that short list.
Success typically relies on deep understanding of the licensor, the manufacturer, and the retail partners, all of which requires some very specialized skills.
“When brands turn to licensing, consumers typically react positively, but only if it is done correctly,” Cross said. “That’s why having experts on your side is so important.
“Food and beverage focused brand agencies like Broad Street Licensing Group work with retail brands to not only help them find the best brand to license, but to ensure they are getting the best deal,” he added. “That relationship typically helps an experienced, well-connected agency get your products onto store shelves as well.”
For anyone wanting to get into licensing for the first time, whether as a licensee or licensor, Cross advises companies to look for agencies that can point to a large portfolio of licensing programs specifically in the food and beverage category, that enjoy broad industry recognition, and that have a track record of repeat client relationships which demonstrate an agency’s focus on consistent execution, rather than one-time wins.
“For businesses exploring brand licensing, understanding the process is the first step,” Cross said. “Don’t be afraid to ask questions, because any top agency should be more than happy to answer them. That’s important, because with the right strategy and the right partner, licensing can become a practical and scalable path to retail growth.”
Cross also says that while the food and beverage industry faces challenges right now, it’s important for companies to remain consistent in their approach to licensing, because consumers typically gravitate to brands that are reliably on store shelves, and don’t pay much attention to those that appear for a few months and then disappear.
Maintaining your presence through downturns is key to long-term success.
“What is going on in the world is unavoidable but is not unprecedented,” Cross points out. “The economy has risen and dipped many times over the years, so just because consumers are tightening their spending during a period of inflation doesn’t mean food and beverage brands need to tighten their products.
“Really, times like these should be seen as an opportunity for brands to utilize the power of brand licensing to make their products stand out against everyone else that is playing it safe,” he argued. “In our long experience in this industry, retail brands that lean into licensing end up on the better side of things when the economy turns around, leaving a wide open road for continued growth.”
Click Here to Explore Licensing Opportunities with Broad Street Licensing Group
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