Cherry Garcia Ice Cream: Trademark Royalties

Collect growing earnings from Ben & Jerry's popular ice cream flavor named after the iconic Grateful Dead founder Jerry Garcia.

$100,000

closing price

Auction Closed

Top Bid: Daniel A

The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.

Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.

Starting Price: $70,000
Bidding Increment: $600
Closing Price: $100,000
End Date: Oct 27, 2020, 3:00 PM MDT
Dollar Age: 33 Years
Last 12 Months' Royalties:

$12,302

Investment Term: 10 years*
Distributors:

Ben & Jerry's Homemade, Inc. 

Rights Included:

Trademark Licensing

Interests Included:

Trademark Owner (U.S. Only)

First Distribution (paid 30 days from receipt):

February 10, 2021

Distribution Frequency:

Quarterly

Buyer Fees:

1% of closing price or $500 (whichever is greater)‡§

* Please see the FAQ tab for more information on the 10-year investment term.

Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.

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Description

Place a bid on this unique royalty stream generated by the popular Ben & Jerry’s ice cream flavor — Cherry Garcia. These earnings stem from the gross sales of the Cherry Garcia ice cream products and are paid quarterly. 

In the past, we’ve made different portions of this royalty stream available for bidding, so if you missed those auctions, now is your chance! 

LISTING HIGHLIGHTS:

  • 33-year Dollar Age
  • Unique royalty stream 
  • Consistent annual earnings

FINANCIAL HIGHLIGHTS:

Earnings generated by the Cherry Garcia product line have remained remarkably consistent (and even increased) over the last four years. In fact, royalties grew over 12% in the last year compared to the prior timeframe — a result of increased sales.

ABOUT THE ASSET: 

Officially released in 1987, Cherry Garcia is a nod to the celebrated and acclaimed guitarist/songwriter Jerry Garcia, along with his band the Grateful Dead. The flavor was an instant hit. Over 30 years later, it remains one of Ben & Jerry’s most popular and “longest-serving” products.

These consistent earnings come from the licensing of the Cherry Garcia trademark. This means the winning bidder will earn royalties from the gross sales of all Cherry Garcia-related products under the Ben & Jerry’s line. Currently, Ben & Jerry’s offers five variations of the Cherry Garcia flavor: ice cream, frozen yogurt, ice cream treats, non-dairy and light ice cream (released in early 2018), along with merchandise. Essentially, whenever Cherry Garcia ice cream (or any of its variations) is sold, you'll earn royalties. 

A portion of the proceeds from this auction will support the production of the next archival music release project produced by Jerry Garcia Music Arts. Jerry Garcia Music Arts is an environmentally conscious, mission-based, music and arts entertainment services company.

Finally, as a special and exciting memento, the seller would like to include a unique piece of Jerry Garcia's artwork for the winner of this auction!

Key Drivers

Consumer Staple. According to Statista, Ben & Jerry's was the top-ranked ice cream brand in the United States in 2019, with about $681.5 million dollars worth of sales. In 2017, Ben & Jerry’s was ranked third, so this increase is worth noting.

It's important to take into consideration that this income stream will only continue to pay out for as long as the Cherry Garcia is sold.

WHAT IS BEING SOLD?

Ten years of payments generated by the seller's interest in the domestic (U.S. only) royalties derived from the licensing of the Cherry Garcia trademark.

About the Royalty Distributor

Ben & Jerry's Homemade Inc., commonly known as Ben & Jerry's, is an American company that manufactures ice cream, frozen yogurt, and sorbet. It was founded in 1978 in Burlington, Vermont, and sold in 2000 to Anglo-Dutch conglomerate Unilever. Today it operates globally as a fully owned subsidiary of Unilever. Its present-day headquarters is in South Burlington, Vermont, with its main factory in Waterbury, Vermont.

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