Tim Horton's: The Selling of A National Brand

It is one thing to have your namesake beverage owned by foreign interests. I am of course talking about Canada Dry, which was purchased in 1964 by U.S. millionaire industrialist Norton Winfred Simon. It is quite another to have your national identity sold right out from under your nose!

At the time of the initial Canada Dry denationalization - Dr. Pepper purchased the company from Simon's group in 1982 - another small beverage company was founded in Hamilton, Ontario.

The vision of hockey icon Tim Horton and partner Jim Charade, no one could have ever imagined in their wildest dreams that this single location would one day grow to overtake even the mighty McDonald's as Canada's largest food service operator.

Research shows that Tim Horton's has 76% of the market for baked goods and holds 62% of the Canadian coffee market. To provide you with some context Starbucks, which is the second leading brand north of the 49th, has a 7% share.

Based on the above, it is quite safe to say that Tim Horton's is to Canada what apple pie is to the United States. The fact that the chain was founded by a revered Canadian hockey star is the exclamation point behind the words Proudly Canadian!

Burger King's move to acquire Tim Horton's, which is a cherished Canadian brand to start with, is bad enough. But to to poach a company that is so closely linked with our national pastime is the equivalent of adding insult to injury.

I mean come on, first Canada Dry goes south of the border, followed by Disney acquiring the rights to market the Royal Canadian Mounted Police brand. Do not even get me started on the Great One's move from the Oliers to the LA Kings. As a Jets fan I despised the powerhouse Oiler teams led by Gretzky as year-after-endless-year they knocked my beloved team out of the playoffs. But Gretzky was as Canadian as the maple leaf and beaver tails. He was ours . . . and then he wasn't. Sold by a failing magnate looking to score some cash in the hopes of turning his business fortunes around.

What's next if indeed the Tim Horton's deal becomes a reality? The Toronto Maple Leafs and/or Montreal Canadians being purchased by Time Warner . . . or worse yet Larry Ellison's Oracle. For those who follow my blog you will understand the angst associated with the latter. I bet that Eillison would do it just to peeve me off too.

In the increasingly globalized marketplace of a world getting smaller with each passing year, this raises an even bigger question; is the concept and reality of the national brand dead?

In his book People Buy Brands Not Companies, Dr. John Tantillo speaks to the importance of brand recognition. Taking it a step further, I also believe that not only do people buy brands, but when successfully marketed, people inextricably associate themselves with a particular brand to the point that it actually defines them from a nationality standpoint.

Just watch one of the many Tim Horton's commercials that portray a dedicated and loving parent getting up before the sun rises to drive his child to the local hockey rink for practice. The camera then pans to the tired but proud parent in the near vacant stands watching his son or daughter take to the ice while sipping a hot cup of Tim Horton's coffee. This is Canadiana at its best! Canadian-owned, Canadian loved - the world over.

It is hard to imagine that this image, and its indelible link to our national pastime, will likely be owned by a burger joint out of Miami, Florida. Florida, where ice is for cooling drinks and the average temperature in December is 69.1 degrees.

The sad irony is incomprehensible.

Note: I know that this is a purported tax move for Burger King which, in the soap opera world of high finance, is owned by Brazilian-based 3G Capital . . . but it is still wrong!

WOW! There is some very passionate comments here. This is going to crack open the US Market for Tim Hortons. It has been very difficult for Tims to get its foot in the door and now it will be blown open. As for the Great White North nothing much will change for us. Our Brothers and Sisters down south will now probably experience double concept buildings like we saw with Wendy's / Tim Horton sites in Canada. Now snowbirds will be able to enjoy a Double Double while they hit the links at Myrtle Beach

Like
Reply
Idalette Martins

Curatorial Assistant, Studio Learning & Special Projects at Art Gallery of Ontario

9y

This is nothing new. All Canadian companies become foreign owned eventually. I can't think of one that isn't actually. I don't identify with a brand as being Canadiana either.

Like
Reply
Wayne Henderson

Business Planning & Development Professional, Skilled in Brand, Sales & Financial Management at Advision Consulting

9y

A Canadian icon...acquired by an American company....owned by Brazilians....moving to Canada....to save taxes? That's loonie!

I think the bigger point should be don't let a company become your national treasure. As proud as your country might be with Tim Horton's or Hershey's, but they have international plans and goals to have an global impact like Coca-Cola or Heinz. Companies are more interwoven with other companies as takeovers, mergers, and even exclusivity contracts have become the way to thrive and introduce a brand to other international markets. Maybe this means Tim Horton's can be introduced to the UK market or it becomes a bigger player in the Starbucks dominaed US? Let the Canadian people, its landscape, or its contibutions be its national treasure. Leave Canadian founded companies out of the discussion. They should not be sacred cows.

Like
Reply

Sad in a way, but think of the strategic ideas that can be generated by having the US Burger King come to Canada. Alliances with forward-thinking organizations sustain viability in the competitive industry of fast foods. Now instead of a Tim Horton coffee shop on every corner in Canada; Burger King is next door. Watch out McDonalds! LOL

Like
Reply

To view or add a comment, sign in

Insights from the community

Explore topics