Some good examples of companies that co-brand are Fatburger and Buffalo's Cafe, Schlotzsky's and Cinnabon, Betty Crocker and Hershey's, Nike and Apple, and Vendante and 3M. Co-branding is a method used to boost market share while reducing financial risks for businesses involved in the partnership.
Partnering with another company is a way struggling franchises can increase business, as the partnership between Fatburger and Buffalo's Cafe proves. Fatburger reached more full-service restaurant customers, while Buffalo's Cafe enhanced its reputation due to its association with a well-known burger brand. Schlotzsky's sandwich shop sales improved when it began attracting consumers who enjoy Cinnabon food items, allowing patrons to have a meal and indulgent dessert at one location. The partnership between Betty Crocker and Hershey's represents another type of food business collaboration. Betty Crocker's popular brownie mix includes a packet of Hershey's chocolate syrup, a popular item that's familiar to many consumers.
Co-branding can also strengthen a company's competitive position in the marketplace. For instance, Nike and Apple are two powerhouse brands that collaborated to produce an exercise and music product. The result is a wireless music device that communicates with Nike's shoes. Vedante is another company that sells clothing and accessories. It joined forces with 3M in a co-branding deal that utilizes proprietary 3M material in its line of safety apparel, which has given the company a competitive edge.