Falcon’s Beyond Strikes Sweet Deal with The Hershey Company to Create New Hershey-Themed Experiential Attractions

Rhea-AI Summary

Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) has secured licensing rights to develop Hershey’s 'retailtainment' venues inside and outside the U.S. The company will create Hershey-branded Location Based Entertainment (LBE) experiences featuring iconic IP like Hershey’s, Reese’s, Jolly Rancher, and Twizzlers. The press release emphasizes Falcon’s collaboration with Hershey to bring immersive experiences and new retail destinations to families and snack enthusiasts.

Insights

Market Research Analyst

The licensing agreement between Falcon's Beyond Global and The Hershey Company represents a strategic move into the realm of Location Based Entertainment (LBE), which is a growing segment within the entertainment industry. LBEs are venues that offer interactive and immersive experiences, often tied to popular brands, to increase customer engagement and generate additional revenue streams.

For investors and stakeholders in Falcon's Beyond Global, this deal signifies the company's expansion into a new vertical that leverages its expertise in immersive storytelling. It could potentially lead to increased foot traffic and brand visibility for Hershey, translating into higher sales volumes for both Hershey's products and Falcon's LBE services. The focus on both U.S. and international markets suggests a broad scope for growth and diversification.

However, the success of such ventures depends on consumer trends towards experiential spending and the ability to execute these projects effectively. The costs associated with developing and maintaining these venues can be substantial and there is a risk that the expected returns may not materialize if consumer interest wanes or if similar competitive offerings saturate the market.

Brand Strategist

The partnership between Falcon’s Beyond Global and The Hershey Company taps into the retailtainment trend, where retail and entertainment converge to create more dynamic consumer experiences. This approach is particularly effective in strengthening brand loyalty and creating memorable brand associations.

From a branding perspective, integrating Hershey's iconic confectionery brands into immersive environments can deepen emotional connections with consumers. It allows Hershey to differentiate itself in a competitive market and can lead to an increase in brand equity. This can have a positive impact on the company's overall valuation, as strong brand equity often correlates with better financial performance.

However, the success of this strategy will hinge on the quality of the experiences and their alignment with brand values. There's a delicate balance between commercialization and preserving brand integrity that Hershey and Falcon’s will need to manage. Missteps in this area could dilute brand value or alienate core customers.

Financial Analyst

The announcement of a licensing agreement with Hershey could be a positive signal for Falcon’s Beyond Global's financial health. Licensing agreements can provide a stable source of revenue through royalties, which are often based on a percentage of sales generated by the licensed venues. This can lead to predictable, recurring income over the term of the agreement.

Moreover, the move into LBE could allow Falcon’s to capitalize on Hershey's strong brand recognition, potentially driving higher margins from both admissions and in-venue purchases. If executed well, the venues could see high visitor turnover, which would contribute positively to Falcon’s top-line growth.

It is important to note, however, that the initial investment and ongoing operational expenses will impact the company's financials. Investors should monitor the rollout of these venues and the market's reception to gauge the potential return on investment. Additionally, any projections of increased revenue will need to be balanced against the costs and risks associated with such a venture.

Falcon’s Beyond secures licensing rights to develop Hershey’s "retailtainment” venues both inside and outside the U.S.

ORLANDO--(BUSINESS WIRE)-- Falcon’s Beyond Global, Inc. (Nasdaq: FBYD) (“Falcon’s” or the “Company”), a global entertainment powerhouse and visionary innovator in immersive storytelling, today announced a licensing agreement with The Hershey Company (“Hershey”). Through this expansive contract, Falcon’s will conceive and develop Hershey-branded Location Based Entertainment (LBE) experiences featuring the industry-leading confectionary and snack company’s iconic IP, such as Hershey’s, Reese’s, Jolly Rancher, and Twizzlers, in both the United States and international markets.

Falcon’s will work with Hershey to bring their company's beloved snacks and moments of goodness to life through “retailtainment” destinations that offer families and snack enthusiasts new immersive ways to experience their favorite tasty brands. Each destination will be highlighted by a Hershey-inspired attraction, a food and beverage experience where visitors will savor delicious bites based on the brand, and a retail offering to shop for one-of-a-kind branded products. Additional details about the Hershey-branded experiences and the debut location will be announced at a later date.

“Falcon’s is honored to work with The Hershey Company and bring some of the world’s most renowned brands to life in new ways so they can be savored by even more consumers around the world,” said Cecil D. Magpuri, CEO of Falcon’s Beyond Global, Inc. “We are excited to explore what’s possible with Hershey and help bring forth what makes their brands so beloved through memorable immersive entertainment experiences.”

Ernie Savo, President of The Hershey Licensing Company, added, “We see our partnership with Falcon’s Beyond as a huge opportunity to continue to expand our brand to consumers across the world. With their impressive track record of growing IP through innovative experiences, Falcon’s is the ideal partner to extend the Hershey’s family of brands in truly new and imaginative ways.”

Falcon’s new deal with Hershey advances the strong momentum the Company has established over the past year by becoming a publicly traded company and the launch of multiple projects, initiatives, and experiences across its three core business units: Falcon’s Creative Group, Falcon’s Beyond Destinations and Falcon’s Beyond Brands. The Company is currently developing a range of high-profile global projects including: the first Vquarium location-based entertainment experience, which will roll out across China through its joint venture with Raging Power Limited, an arm of the Hong Kong-based cultural commerce giant K11 Group; and the Qiddiya Water Theme Park and the world’s first Gaming and Esports district in Qiddiya City in collaboration with Qiddiya Investment Company in Saudi Arabia.

About Falcon’s Beyond

Falcon’s Beyond is a visionary innovator in immersive storytelling. A global entertainment powerhouse where original ideas – fueled by passion and guided by unparalleled expertise – take flight and accelerate at speeds beyond your imagination. Where fun is reimagined through innovative technologies and unprecedented themed experiences. Falcon’s connects the world by bringing stories to life through theme parks, resorts, animation, consumer products, gaming, movies and beyond.

Falcon’s Beyond propels intellectual property (IP) activations concurrently across physical and digital experiences through three core business units:

• Falcon’s Creative Group is one of the world’s leading themed entertainment and master planning firms, having planned over $100 billion in award-winning experiences, where creative vision, compelling design, immersive media, and cutting-edge technology intersect to bring imagination to life.
• Falcon’s Beyond Destinations develops, owns, and operates global entertainment destinations from resorts, theme parks, attractions, retail, dining and location-based entertainment venues where stories come to life and memories are made.
• Falcon’s Beyond Brands expands franchises across multiple platforms from media to gaming, music to consumer products and beyond. Falcon’s also invents immersive rides, attractions and technologies for entertainment destinations around the world.

Falcon’s is headquartered in Orlando, FL. Learn more at falconsbeyond.com.

About The Hershey Company

The Hershey Company is headquartered in Hershey, Pennsylvania and is an industry-leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet and communities. Hershey has nearly 20,000 employees in the U.S. and around the world who work every day to deliver delicious, high-quality products. The company has more than 100 brand names in approximately 80 countries worldwide that drive more than $10.4 billion in annual revenues, including Hershey's, Reese's, Kit Kat^®, Jolly Rancher and Ice Breakers, and fast-growing salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels.

For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker's founder, Milton Hershey, created Milton Hershey School in 1909 and since then the company has focused on helping children succeed through equitable access to education.

To learn more: thehersheycompany.com

Caution About Forward-Looking Statements

This press release contains, and management of Falcon’s Beyond (“Falcon’s” or the “company”) may make, forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “anticipate”, “believe”, “can”, “continue”, “could”, “expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “seek”, “should”, “strive”, “target”, “will”, “would” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, but are not limited to, statements regarding the development of Falcon’s products, technologies and services, business and business plans, commercial plans and platform, third party partnerships including Falcon’s relationship with Hershey’s, and projections of market opportunity and market share. Actual events or results are difficult or impossible to predict and may differ materially from those expressed in or implied by the forward looking statements in this press release. Some of the factors that could cause actual events or results to differ include but are not limited to the following: (1) changes in domestic and foreign business, market, financial, political, and legal conditions in general and in the entertainment industry in particular; (2) the enforceability of the Falcon’s intellectual property, including its patents, and the potential infringement on the intellectual property rights of others, cyber security risks or potential breaches of data security; (3) any failure to realize the anticipated benefits of the technologies and other developments, including the company’s recently completed business combination transaction; (4) risks related to the rollout of the Falcon’s business and the timing of expected business milestones; (5) risks related to the development and marketing of Falcon’s products and technologies, including the ability to successfully market and develop digital and AI technologies and virtual platforms; (6) the effects of competition on Falcon’s business; and (7) those factors discussed in the Registration Statement on Form S-1/A filed with the SEC on November 30, 2023 under the heading “Risk Factors” and other documents Falcon has filed, or will file, with the SEC. Our forward looking statements speak only as of the date of this presentation or as of the date they are made, and we undertake no obligation to update our forward looking statements.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20240109608413/en/

Media:

Kathleen Prihoda, Falcon’s Beyond

kprihoda@falconbeyond.com



DKC Public Relations

Falcons@dkcnews.com

Source: Falcon’s Beyond Global, Inc.

FAQ

What company secured licensing rights to develop Hershey’s 'retailtainment' venues?

Falcon’s Beyond Global, Inc. (Nasdaq: FBYD)

What iconic IP will be featured in the Hershey-branded Location Based Entertainment experiences?

Hershey’s, Reese’s, Jolly Rancher, and Twizzlers

What kind of experiences will the retailtainment destinations offer?

New immersive ways to experience favorite tasty brands for families and snack enthusiasts

What are the highlights of each destination?

A Hershey-inspired attraction, a food and beverage experience, and a retail offering for branded products