The Fate of Acquired Brands: A Look at the History of Acquisitions and Brand Elimination

When a brand buys one of its rivals, it's often expected that the acquired company will be fully integrated into the parent brand. This can result in significant changes to the target market, product offerings, and even the company culture itself. However, there's a darker side to acquisitions – the elimination of the original brand.

A Common Practice

In many cases, when a brand buys one of its rivals, it tends to eliminate any trace of that former competitor. This can be done in various ways, including:

• Discontinuing products: The acquired company's products are discontinued or rebranded with the parent company.
• Closing stores: Physical stores associated with the acquired brand are closed and replaced with those bearing the parent brand.
• Rebranding employees: Employees who were working for the acquired company may be rebranded as employees of the parent company, with their job titles and roles changed.

Examples of Acquired Brands Being Eliminated

There are many examples of brands being eliminated after an acquisition. Here are a few notable ones:

• Hostess Brands: In 2012, Hostess Brands was acquired by Flowers Foods. As a result, the iconic Twinkie and Ho Hos brands were discontinued, and the company's assets were largely sold off.
• Pepsi's Gatorade Acquisition: When PepsiCo acquired Gatorade in 2001, the brand's packaging was redesigned to feature Pepsi's logo. The original Gatorade branding was phased out over time.
• Coca-Cola's Fanta and Sprite Acquisitions: In the early 20th century, Coca-Cola acquired the rights to Fanta and Sprite from British soda companies. While the brands continue to exist, they are still largely seen as subsidiaries of Coca-Cola.

Why Brands Are Eliminated After Acquisitions

So, why do brands get eliminated after acquisitions? There are several reasons:

• Integration: Acquiring a brand can be an opportunity for the parent company to expand its reach and increase market share. By eliminating the acquired brand, the parent company can create a more cohesive product line.
• Cost-cutting: Acquisitions often involve significant investment in research and development, marketing, and other operational costs. Eliminating the acquired brand can help reduce these expenses.
• Rebranding opportunities: Acquiring a new brand can provide an opportunity for rebranding and refreshing the parent company's image.

The Legacy of Acquired Brands

Despite being eliminated, the legacy of acquired brands often lives on. Many consumers still hold fond memories of the brands that were discontinued or phased out. In some cases, companies may choose to honor these brands by reviving them as limited-edition products or by releasing special edition merchandise.

Revivals and Reboots

In recent years, there has been a trend towards reviving and rebooting acquired brands. This can be done in various ways, including:

• Limited-edition releases: Companies may release limited-edition products or packaging featuring the revived brand.
• Special edition merchandise: Companies may release special edition merchandise, such as t-shirts or hats, featuring the revived brand.
• Rebranding efforts: Companies may launch rebranding efforts to revive the acquired brand and appeal to new audiences.

Conclusion

Acquisitions can be a significant opportunity for companies to expand their reach and increase market share. However, in many cases, acquired brands are eliminated as part of the integration process. While this can result in significant cost savings, it also means that the original brand's legacy is lost. In recent years, there has been a trend towards reviving and rebooting acquired brands, providing consumers with a chance to relive fond memories or experience new products.

Recommendations for Companies

If you're considering acquiring another company, here are some recommendations:

• Consider the brand's legacy: Think carefully about whether it makes sense to eliminate an acquired brand. Consider the potential impact on customers and the brand's reputation.
• Develop a rebranding strategy: If eliminating the acquired brand is not feasible, consider developing a rebranding strategy that honors the brand's legacy while still integrating it into the parent company.
• Communicate with stakeholders: Communicate clearly with stakeholders about the acquisition process and any changes that will be made to the acquired brand.

By taking a thoughtful approach to acquisitions and considering the potential impact on brands, companies can create successful integrations that benefit both parties.