Stealth Brands
Every so often a brand strategy intrigues me and motivates me to investigate it deeper. Such has been the case a couple of times over the past week where things in the branding world just don't seem to appear right at face value. Some thought and some digital investigation has proved this hypothesis right.
Everywhere you go these days in delis and sandwich shops you see a brand of kettle potato chips called Miss Vickie's. It's one of those cases where the brand just came out of nowhere and established shelf space and presence so quickly that you begin to question how an independent, small gorilla-type brand could make this happen? As with any of these brand launches today, there's more than meets the eye. Miss Vickie's is a good kettle cooked potato chip. It comes in flavors ranging from roasted garlic and herb to rosemary and basil and, of course, sea salt. Miss Vickie's is also a potato chip that comes out of Canada. Not exactly a place you would think about for potatoes. It makes more sense to be in Idaho.
Who owns Miss Vickie's? None other than the snack food retail brand giant Frito-Lay. Potato chips are a segment in the snack food category that has flat sales growth at best. Frito-Lay owns the market. Go into any grocery store and see how many facings their products have, Lays, Doritos and Tostitos dominate each chip category niche. What's a brand of this size and share magnitude to do when looking for growth? That's easy, acquire a company. That allows them to have a stealth type brand, one that doesn't carry the onus of being a Frito-Lay product. That would make it dull and uninspiring. Miss Vickie's has enough brand cachet to stand out in a crowded category. Mix that with the retail penetration prowess of a Frito-Lay and you have a winning product. Are the kettle chips any better than the Cape Cod chips or other equivalents? Maybe yes or maybe no. One thing is for sure; they're going to be front and center at your eye at delis, sandwich establishments and other specialty grocery stores where you reach for a bag of chips to accompany your sandwich purchase.
Another brand that jumped out at me in my travels was LandShark. It's manufactured by the Margaritaville Brewing Company. (Yes, the very same Jimmy Buffet and the myriad of brand extensions of Margaritaville that have taken place over the past decade or so.) Do they actually think that Jimmy Buffet has anything to do with the brewing of beer? Margaritaville Brewing is located in Jacksonville, Florida. It makes sense that you'd have summer-type brew attached to a brewery in a southern state. It just so happens that Anheuser-Busch has one of their brewery locations in Jacksonville. Coincidence? No. Anheuser-Busch brews the beer. It is Anheuser- Busch's answer to Corona. It's even labeled as the Corona Killer. Yes, the prerequisite is to use a lime with LandShark much like everyone has been taught to do with their Corona. Does it taste as good or is it an equivalent to Corona? The reactions seem to be mixed. Some like it; others don't. What makes Corona successful is the amount of sugar that's used. In fact, it's one of the highest caloric beers you can consume. LandShark has its place and will get its market share. Why? Because Anheuser-Busch distributors wield a mighty clout with the retailer. They'll find a way to continue getting and retaining shelf space. Yes, it's easy to sell-in when Jimmy Buffet and Margaritaville are attached to the brand; but it helps to have the channel presence of Anheuser-Busch.
With both of these brands, it is the channel that makes it a go. Yes, Miss Vickie's and LandShark are unique concepts powered by the marketing prowess of Frito-Lay and Anheuser-Busch; but it is their distribution partners who make it happen. They're the ones who have to sell it in and sell it through. The communication dollars they're spending from a brand halo help; but it is the individual relationships of those channel selling influences that make it happen. Those are the people that the delis, sandwich shops, liquor and convenience stores all trust. Both brands are everywhere. I'd be interested to hear how you've experienced stealth, niche-based brands that made a difference in your purchase decision making, even though you may or may not know that they're done by the mega-brand giants. Let me know about them.
After reading your post, I looked up the 2 brands that I've been a dedicated consumer of over the past year, Morning Star and Fiber One. I was surprised to find out that the healthy eating habits I've gained over time are thanks to Kelloggs and General Mills. I used to love the sweet and sugary cereals these two leading producers have to offer. Who would of thought that Fruit Loops, Cocoa Krispies and Lucky Charms would be made by the same companies that distribute the healthy Garden Burgers, cottage cheese and yogurt that I eat today?
I think the Scion car brand introduction was particularly innovative and, while Toyota didn't exactly hide, they made it OK for Kids to want aspire to own a 'Toyota'.
I must confess to being very disappointed when I think I've found a small micro-brew or some twee home grown brand only to found some mammoth marketing department has essentially tricked me - I then revert back to buying one of the original brands that helped found the small niche category in the first place.
Do the endorser names have to put their name on product?
Frito-Lay took the stealth-brand approach at least once before, when it acquired the Smartfood popcorn brand. Unilever did it, after a fashion, when it acquired Ben & Jerry's. Quaker Oats tried to do it when it acquired Snapple (as did subsequent Snapple owners Triarc & Cadbury Schweppes -- does something about that brand vex multinational owners?).
A huge challenge for stealth brands, particularly in an age of digital word of mouth that prizes authenticity, is retaining a distinct "personality" and value proposition. Social media offers great tools for projecting individual brand identities. But each virtual manifestation each must be backed up in word and deed, and reinforced across all channels (merchandising, advertising, social responsibility, etc.).
Ben & Jerry's could be (and probably is) an ideal case study in how to retain and reflect small-company values and branding under the auspices of a huge corporate owner.
Cheers,
Jim
Great thread so far - from todays WSJ - 'Starbucks Corp is scrubbing its name in favor of the store's street address, in a test that could yield more stores that resemble a street corner coffee shop, instead of a global coffee giant'. (They'll also serve beer and have live poetry reading etc in effort to give it more community vibe.)
I admire the corporate ability to acknowledge what they are and how far they've evolved from original concept - and try something new. I suspect the trendies might resist due to lack of authenticity. I wonder if a franchising model that gives local business people chance to open a store backed by large resources might help concept.
Born and raised in a small town, my support is always behind the local (or at least the smaller) brands/stores. I'll take a local grocery store, coffee or ice cream shop over a Stop & Shop, DD or Dairy Queen any day. Of course, convenience sometimes trumps intentions. These days there are few brands that aren't supported by a corporate parent.
Similar to Ben & Jerry's, Bear Naked and Kashi are tied to a powerhouse, but have managed maintained their appeal to the anti-big brand, crunchy consumer - kudos to all 3. In the local CT deli's, Miss Vickie's is on the shelf right next to Deep River Snacks - similar flavors, similar packaging - world of difference. Deep River Snacks are family owned and operated right down the road in Old Lyme, CT.
I wonder the fate of Deep River Snacks. It's tough to maintain certain consumer principles with all of these stealth brands.
I've recently been enjoying some Shock Top Belgian White brews now that the warm weather has blessed itself upon us. I was out with a friend and tried it at a local watering establishment and enjoyed it so much I purchased a 12 pack . While it doesn't have the cache that Blue Moon has, it is not a bad beer. Not until half way through the 12 pack have I actually noticed it is brewed by Michelob. Another major brewer with a silent introduction into the microbew sector, i.e. Anheuser Busch.