The hidden lives of the small brands

Behind the closed doors of many of the small, independent brands across the world you will find a dirty little secret they don't want you to know about. They say reputation is everything so how would you feel if that independent coffee chain you go to every Saturday morning to buy artisan coffee turned out to be owned by a big supermarket? Well if the answer is upset then the news that Tesco owns at least a 49% market share in coffee shop 'Harris and Hoole' might bring a wee tear to your eye.

http://www.bbc.co.uk/news/magazine-20943739

Pay close attention to the article on the BBC website and you'll see this isn't a random occurrence. Tesco themselves have been busy recently acquiring companies ranging from online entertainment channel Blinkbox to family restaurant chain Giraffe. However, it isn't just Britain's largest retailer who enjoy a bit of small brand mine fishing. Brands that were once founded on sound principles, anti-establishment and breaking from the constraints of big business have been quietly acquired by big companies looking to leverage brand position or target whole new segments of customers. And why would you blame them? It can turn out to be a real smart bit of business.

Referencing the below article and after some digging you might be surprised to find the dirt that can truly be uncovered on some of the smallest brands across the world.

http://www.businessinsider.com/13-ethical-mom-and-pop-brands-that-are-actually-owned-by-giant-corporations-2011-10?op=1

Ben and Jerry's rolled out their first store in small town America in 1978 following an investment of $12,000- the store went out of business after two months following horrendous sales. But Ben and Jerry didn't fall at the first hurdle. After learning from their first failure, and based on strong principles around quality ingredients, environmentally friendly products and fair trade they went on to build a strong, reputable brand. Ben & Jerry's became a poster child for small time investors everywhere on what can be achieved when David goes up against Goliath. Of course that was until the ice cream venture was purchased by the FMCG giant that is Unilever in 2000 for an astronomical $326 million dollars!

This is where the sordid lives of small brands starts to get really interesting. What other examples can we see of big business buying small brands? Did you know innocent smoothies was purchased by Coca- Cola? were you aware Cadbury/Kraft owned Green & Black's? Most importantly did you know many of the worlds consumer brands are actually owned by 10 multi-national companies? Don't believe me? The Brand Avenger would never lie but just in case you still doubt me check out this article.

http://www.huffingtonpost.com/2012/04/27/consumer-brands-owned-ten-companies-graphic_n_1458812.html

You could use all of this information as a sign that the big boys will always win but I can't help but ponder what role social media will begin to play in all of this? It has already been widely acknowledged throughout The Brand Avenger's other blogs that social media has become a symbol of justice in a world of consumption- It has provided the consumer with a voice. Type Harris and Hoole into twitter and we have some real life examples of this voice...

Gus Hoyt ‏@MrGreenGus3 Jan

BEWARE of imposters. Harris and Hoole coffee shops might look independent but are Tesco-coffee shops in disguise.

Baked bakery & café ‏@bakedDERBY8 Jan

You'll no doubt be pleased to know that, unlike Harris & Hoole, we are 100% independent and not owned by a supermarket!

We are beginning to see companies understand the impact social media will have on their image however I can't be as brazen to suggest companies will think twice about purchasing small, independent brands. What it does mean is that they will have to become more transparent In their motives and intentions as brand perception and value measurement continues to evolve. 

But what about the people who jeopardise their initial vision through selling to big competitors? Should these citizens be jeopardised for chasing the almighty dollar? There is no doubt that online buzz has an impact on the reputation of the brand, however to what extent does internet outcry have on damaging brands long term profitability? Maybe the the social outburst towards Harris and Hoole has done more to symbolise the general apathetic attitude towards Tesco than it has to damage the image of the independent coffee chain. If this is the case it why wouldn't small investors not look to cash in when the big brands come knocking.