In September 2024, Alfred Coffee and Icelandic Glacial launched a landmark six-week exclusivity agreement across Alfred’s Los Angeles cafés (excluding LAX). Icelandic Glacial became the sole provider of still and sparkling water and co-developed two limited-edition sparkling tonics. The partnership combined Alfred’s design-driven café experience with Icelandic Glacial’s sustainably sourced, high-pH water; generating foot traffic, social buzz, and extended consumer engagement.
What Did Alfred Coffee and Icelandic Glacial Say About the Collaboration?
Jordan Hardin, Alfred Coffee’s Food & Beverage Director, explained:
“Pairing our signature espresso and ceremonial matcha with Icelandic Glacial’s sparkling waters creates a light, fresh experience that perfectly aligns with Alfred’s innovative spirit.”
Michelle Grieco, VP of Marketing at Icelandic Glacial, added:
“This collaboration highlights our commitment to premium quality and sustainability, delivering an exciting, design-led beverage offering for Alfred’s discerning clientele.”
What Can Brands Learn from Other Successful Food & Beverage Partnerships?
Alfred Coffee × Icelandic Glacial
- Scope of Exclusivity: Icelandic Glacial became Alfred’s exclusive water supplier for six weeks.
- Product Co-Creation: Espresso Blood Orange Tonic and Matcha Lemon Tonic.
- Consumer Engagement: Social buzz, in-store promotions, and retail-ready cans extended the impact beyond cafés.
Salt & Straw × Stumptown Coffee Roasters
Portland-based Salt & Straw teamed with Stumptown Coffee Roasters to craft a seasonal Coffee & Chocolate Custard ice cream:
- Product Innovation: Custard ice cream infused with Stumptown’s Hair Bender espresso and dark chocolate chunks.
- Co-Branding & Licensing: Stumptown’s marks featured on pint packaging, signage, and social media posts, subject to joint approval.
- Supply Commitments: Weekly deliveries of espresso beans with tiered pricing based on seasonal demand.
Brooklyn Brewery × Van Leeuwen Ice Cream
Brooklyn Brewery and Van Leeuwen Ice Cream co-created a limited Beer-Swirl ice cream line:
- Exclusive Flavors: Brooklyn Lager Swirl and Ghost Ale with Coconut Caramel.
- Marketing & Distribution: Available in Van Leeuwen shops and Brooklyn Brewery taprooms, promoted through joint tasting events.
- Quality & Compliance: Agreements required FDA-compliant alcohol labeling, cold-chain logistics, and locally sourced dairy.
How Should Companies Structure an Exclusive Supply Agreement?
Define the Scope of Exclusivity
Clear exclusivity provisions set the foundation. For Alfred, Icelandic Glacial became the sole bottled water supplier in its U.S. cafés, reinforcing brand positioning and highlighting eco-friendly packaging.
Set Supply Commitments and Pricing
Partnerships succeed when supply expectations are transparent:
- Minimum Purchases: Tiered thresholds for still and sparkling water.
- Wholesale Pricing: Predictable pricing bands to safeguard Alfred’s margins.
Include Quality and Compliance Protections
Safeguards are critical:
- Regulatory Compliance: Agreements covered FDA and California Department of Public Health standards for labeling and distribution (FDA Food Labeling Guidance).
- Sustainability Standards: Requirements tied to Icelandic Glacial’s aluminum packaging and certifications.
Protect Intellectual Property and Branding
- Trademark Licensing: Controlled use of logos and marks across menus, packaging, and digital campaigns.
- Confidentiality: NDAs protected proprietary tonic formulas.
- Approval Processes: Joint sign-off required for social media and press materials.
Plan the Term, Renewal, and Exit Strategy
- Launch Period: Six-week initial term, with extensions tied to sales and engagement.
- Termination Clauses: Outlined for breach, reputational harm, or force majeure.
- Wind-Down Rules: Addressed inventory, co-branded material removal, and transition steps.
Extend Engagement Beyond the Launch
- At-Home Recipes for Alfred × Icelandic tonics.
- Retail-Ready Cans (330 mL, zero calories/sugar) to drive at-home brand loyalty.
FAQs
What is an exclusivity agreement in food and beverage partnerships?
An exclusivity agreement makes one brand the sole supplier of a product or ingredient for a set period or scope. This ensures consistent quality, strengthens marketing campaigns, and prevents competitors from accessing the same retail channel. However, it requires careful drafting to balance flexibility with protection.
Why is compliance so critical in co-branded products?
Partnerships often involve new formulations or labeling—like alcohol-infused ice creams or functional tonics. Regulatory agencies such as the FDA and state health departments enforce strict requirements on labeling, transportation, and safety. Non-compliance can result in recalls, fines, or reputational damage. You can see how this risk plays out in our recall tracker, which monitors product recalls across industries.
How can brands protect their intellectual property in collaborations?
Confidentiality clauses, NDAs, and trademark licensing agreements are essential. These provisions prevent unauthorized use of recipes, logos, or proprietary processes, ensuring both brands maintain control over their most valuable assets.
What happens if one party wants to end the partnership early?
Well-drafted agreements include termination rights for breaches, force majeure events, or reputational harm. They also outline how inventory will be managed and how branding materials will be removed, reducing disruption to consumers and operations.
Key Takeaway
The Alfred Coffee × Icelandic Glacial partnership and similar collaborations like Salt & Straw × Stumptown or Brooklyn Brewery × Van Leeuwen prove that exclusivity, compliance, and clear IP licensing drive premium food and beverage partnerships. Juris Law Group has extensive experience drafting and negotiating exclusive supply, licensing, and co-branding agreements. We help brands move quickly, protect their IP, and avoid costly compliance missteps.
Need help navigating an exclusive supply or co-branding agreement? Contact Juris Law Group for expert guidance.
