Bradley Smoker Inc.: The Licensing Opportunity

In late 2007, the chief executive officer (CEO) of Delta, British Columbia-based Bradley Smoker Inc. (Bradley Smoker) was considering a potential licensing opportunity with Beam Global Spirits & Wine (Beam Global), owner of the Jim Beam brand of bourbon drinks. Bradley Smoker was a small Canadian manufacturer of food-smoking machines and bisquettes, which it sold through a variety of retail channels around the world. The current opportunity would see Jim Beam-branded bisquettes produced from wooden barrels used in the production of Jim Beam bourbon. The CEO was excited by the possibility of co-branding his product with a well-recognized global brand, but was also intimidated about the negotiations and legal aspects of such agreements. As head of a fast-growing company with many projects on the go, the CEO wondered, when all aspects were considered, would such a deal make sense?