Brands are an integral part of modern commerce, it is an easy way to quickly identify a business, so much so that many of us refer to businesses by their brand names without a second thought.
Mention "Coca Cola" and the image that likely springs to mind is a bright-red aluminium can bubbling with a carbonated beverage. Yet, how many are aware that The Coca-Cola Company (NYSE: KO), boasts over 500 brands in its portfolio? One notable subsidiary is Costa Coffee, a leading coffee chain in the United Kingdom.
Discussing "Costa Coffee" as a brand on its own might seem straightforward, but misunderstandings can surface in different situations.
For example, mention "Costa Coffee" to a taxi driver, and they might think of the nearest store location. On the other hand, bring it up to a stockbroker, and they might see it as a promising investment opportunity in The Coca-Cola Company, since Costa Ltd (Costa Coffee) is registered as a subsidiary to the former - this means we can only own shares of "Costa Coffee" by purchasing shares of The Coca-Cola Company (NYSE: KO).
This inconsistency highlight the fact that everyone's perception of a brand is different based on context. Unlike specific product codes or stock symbols, brand names don't offer a universally understood identifier for businesses.
Furthermore, in legal cases, brands can only be represented by the underlying legal entity(ies). You should know that brands cannot be parties to a business contract. This is by design. Brands aren't separate entities; they're vaged identifiers, designed for everyday conversations in informal settings.
This is why when engaging in business dealings, it's crucial to verify a company's legal name and registration number. Instead of solely relying on the information on the company's website (or social media page), consider cross-referencing with a legal entity database to ensure the business is legitimate.
You might just find out the business you are looking to work with has recently been reported for late payments, have its addressed changed or under filing for administration.
