Key takeaways:
- Cinnabon’s return through instore bakery shows how food brands can remain commercially powerful even after disappearing from the high street.
- Food licensing has evolved far beyond novelty tie-ins, with bakery, snacks and beverages now among the fastest-growing areas of the global licensing market.
- For manufacturers and retailers, licensing offers a fast route to consumer recognition, premiumisation and differentiation in increasingly crowded supermarket aisles.
Cinnabon’s abrupt UK retreat last year raised questions about whether the cult American bakery brand could ever truly establish itself on Britain’s high streets. Yet despite the closure of its standalone stores, the brand itself clearly retained enormous consumer recognition.
Now, it’s returning to UK consumers through a supermarket licensing agreement with Baker & Baker – a move that says a great deal about where food branding is heading.
Because while food licensing has existed for decades, its role inside FMCG is changing rapidly. What was once largely confined to children’s birthday cakes and novelty tie-ins has become a serious commercial strategy. Brands are using licensing to stay culturally visible, generate excitement and cut through crowded supermarket shelves where entirely new names often struggle to gain traction.
Licensing grows up
Familiar names that already exist in consumers’ minds through travel, nostalgia, TikTok or entertainment culture have become valuable shortcuts to consumer attention. That’s especially true in bakery, where indulgence and flavour familiarity naturally lend themselves to brand extensions.
“Licensing has become a key differentiator for bakery manufacturers across Europe, because these partnerships bring iconic confectionery brands that possess extremely high consumer recall into the bakery aisle,” said Michael Bancroft, licensing director at Baker & Baker, which operates licensing agreements involving Cadbury, Oreo and Milka through its Mondelēz partnership.
Another contract manufacturer making the most of branding is Finsbury Food Group, which recently renewed its long-running Disney collaboration covering celebration cakes linked to franchises including Frozen, Moana and Marvel. The agreement, which stretches back more than 20 years, allows Finsbury to align launches with major film releases, anniversaries and entertainment moments.
Food and beverage licensing is also becoming far more visible across the wider licensing industry. Licensing Expo in Las Vegas and Brand Licensing Europe in London now feature major FMCG and food-brand activity alongside traditional entertainment and character licensing. According to Licensing Expo, the wider licensing industry generates an estimated $356.5bn in global retail sales, with food and beverage now among its fastest-growing sectors.
Brands are also moving well beyond straightforward logo extensions. Food and beverage licensing is now stretching into apparel, beauty, homeware, experiences and lifestyle products as companies look for new ways to deepen consumer engagement. Haribo, for example, marked the centenary of its Goldbear brand with licensed toys, apparel and homeware, while Guinness has expanded through partnerships spanning cakes, snacks, pies and even ice cream. Elsewhere, Girl Scouts has moved beyond biscuits into beauty and confectionery collaborations, while Coca-Cola continues extending into apparel and lifestyle categories.
Much of the appeal comes from nostalgia and emotional connection, allowing brands to stretch into new categories while still feeling familiar to consumers.
Not every partnership succeeds, though. Consumers are quick to spot collaborations that feel forced or opportunistic, particularly when the flavour, format or audience alignment feels weak. The strongest licensing partnerships tend to feel intuitive – Oreo in bakery, Guinness in cakes or Biscoff linked to coffee-led occasions.
“Consumers are looking for products that feel both familiar and exciting at the same time,” Bancroft said. “When licensing works well, it creates an instant connection because shoppers already understand the brand and what it represents.”
Social media has accelerated the trend further. Limited edition launches, unexpected flavour mashups and culturally recognisable products generate visibility far beyond supermarket shelves, particularly on TikTok and Instagram, where food increasingly functions as entertainment as much as sustenance.
“Consumers are well aware of iconic US food and confectionery brands from their travels or via social media,” Bancroft said. “Cinnabon has been an established bakery brand for more than 40 years and has secured strong reach across different geographies.”
Why licensing works in food
Licensing cuts through a problem that has become harder every year: getting shoppers to notice new products.
In categories heavily dominated by private label, recognisable brands create instant theatre and familiarity without requiring consumers to spend dramatically more. They also allow manufacturers to refresh mature categories quickly without building entirely new brands from scratch.
That’s particularly valuable in instore bakery, where purchasing decisions are often impulse-led and heavily influenced by visual cues and flavour familiarity.
“Consumers want to experience their favourite confectionery flavours across different categories, and many of these flavours pair particularly well with different bakery product formats,” Bancroft said.
Bakery also lends itself naturally to flavour translation. Chocolate brands, biscuit brands and dessert brands can move relatively easily into muffins, doughnuts, cakes, cookies and pastries without the partnership feeling forced.
Supermarket bakery aisles have become fiercely competitive, particularly as retailers invest more heavily in premium own label and food-to-go formats. Licensed products offer retailers something valuable: built-in consumer awareness without the cost of creating entirely new brands.
“Retailers understand the power of globally recognised brands within instore bakery,” Bancroft added. “There’s strong appetite for products that bring something different to the aisle while still feeling familiar to consumers.”
Licensing also offers manufacturers a relatively quick route into premiumisation. Licensed products often feel more elevated than standard own-label launches while remaining affordable enough for regular purchasing – an important balance during a period when many consumers are cutting back on larger discretionary spending but still seeking smaller indulgences.
“A key driver in the success of licensed products within instore bakery is their accessible price points and the ability to deliver a coffee shop experience at home or on the go,” Bancroft said.
That ‘little treat’ positioning continues to perform strongly. Consumers may be spending more cautiously overall, but affordable indulgence still holds appeal, particularly when attached to familiar brands and flavours.
Brands no longer need stores to stay relevant
Cinnabon may have disappeared from Britain’s shopping centres, but the brand itself clearly never disappeared from consumers’ minds. In fact, Baker & Baker said Cinnabon still holds 78% brand recall among UK instore bakery shoppers despite its limited recent retail footprint in the market.
Cinnabon’s return through instore bakery suggests the modern food brand may not need a high street presence at all – just enough consumer recognition to keep selling long after the stores themselves have disappeared.
