Place branding is an approach to stimulating territorial development. From the theoretical point of view, place branding in rural areas should be an inclusive and participatory process. Applications and outcomes of the process have been insufficiently investigated so far in rural areas. The oldest place brand in Slovenia, “Babica in Dedek”, is analyzed to present its socioeconomic circumstances, impacts, and challenges from the perspective of local producers. Three qualitative methods are thus applied: analysis of documents, semi-structured interviews, and a focus group. This case study has revealed factors that contribute to new marketing opportunities, product packaging, holding seminars, and advertising local products in the area. On the other hand, the empirical findings are only partly aligned with the theoretical implications: the impacts of place branding are “sectorally limited” instead of being inclusive and participative.