What do athletic shoes, high fashion and luxury ice cream have in common? According to NexCen Brands Inc. (NASDAQ:NEXC), the need for proper brand management and the potential to build the brand value.Over the past year, this brand management firm has bought retail chain The Athlete's Foot (one of the worst store names ever, IMHO) as well as the high-fashion line Bill Blass. It also purchased UCC Capital Corp. for its experience in monetizing intellectual property and crafting deals.
The company states it intends to focus on three sectors: Retail franchising, branded products, and quick service restaurants. In its first foray into the restaurant end, it has now added two high-end ice cream vendors, MaggieMoo's and Marble Slab.
The Houston-based Marble Slab has over 500 locations open or in development. MaggieMoo's adds another 200 outlets. By comparison, Cold Stone Creamery has about 1,200 stores, while Dairy Queen Inc., owned by Berkshire Hathaway (NYSE:BRK.A), offers 5,600 outlets.
Both of the newly-acquired companies have vigorous franchising programs that seem to fit well into NexCen's strategic plan. What I don't see are much in the way of cross marketing opportunities. One rarely mixes tennis shoes with a Bill Blass suit, much less risk staining said suit with drips from a double-fudge ice cream cone.
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Will Rich Ross really have a positive impact on Disney's movie operations?
