HBC has today started a long-term collaboration with Tenet Partners. Our goal is to build a consumer brand for HBC’s line of salmon-based products. Tenet Partners has an impressive and long track record in building powerful brands with a clear vision that motivate connections with consumers. We have experience across a multitude of sectors with particular focus on healthcare and consumer product sectors, making us an excellent partner for HBC. Within healthcare, Tenet’s clients include Amgen, J&J, Pfizer, Catalent and NPS Pharma and in consumer products we have worked with Colgate-Palmolive, Kraft, PepsiCo and even WellPet, a natural pet food brands owner.
The collaboration with Tenet will enable HBC to accelerate the development of its own brand and marketing strategy for its Consumer Health division. The Hofseth Group already has broad and well-established retail sales channels through which it will continue to place products, with existing access into over 40,000 retail outlets worldwide. Tenet’s approach to market analytics, branding and design will enable HBC to more rapidly utilize and monetize those sales channels as well as create its own brand for its unique, sustainable marine-derived products to be sold into segments such as OTC pharmacies, sports nutrition and cosmetics amongst others. Tenet offers e-commerce expertise, including engagement, technology and customer experience work, which will further help build HBC’s commercial reach for its B2C offering. Our breadth of work will be comprehensive including: new name development, developing a messaging matrix, new packaging concepts, new logo/identity and redesigning HBC’s own-product website.
As part of the transaction, Tenet Partners will also take more than half of the fees in the form of share options in HBC at par value that will vest and become exercisable upon the board of directors' approval of Tenet's delivery under the agreement's main phase, tentatively by May/June 2021. Shares issued to Tenet following vesting and exercise of the options will be subject to a lock-up of 24 months as well, and Tenet will continue to deliver services to HBC during the lock-up period.
Tenet CEO Hampton Bridwell underscored that a close alignment of culture and philosophy is key for success. “Hofseth is a true innovator driven by vision, looking to push the boundaries. This venture is a great match for our brand-innovation approach and experience in building billion-dollar companies and product lines for B2B and consumer channels. Tenet’s proven approach is built on design-thinking and data science to yield consumer insights and an ability to scale brands through systems design” he said.
“Our relationship reflects this non-traditional mindset,” Bridwell noted. “Rather than a straight fee, we’re entering into a true equity partnership. That means we have ‘skin in the game:’ Our success will be directly tied to the results we achieve together. The fact that Tenet is employee-owned made this possible. Our 100% Employee Owned culture gives us financial flexibility and a venture-growth mindset that we believe is perfect to help HBC build a tremendous consumer business worldwide.”
“We see this as a wonderful opportunity to align with a company that shares our values at a very deep level,” Bridwell noted. “Hofseth is and always has been focused on sustainability and improving life. This complements Tenet’s ongoing commitment to positive societal and human impact, through our work with organizations such as Sustainability Accounting Standards Board and Smithsonian Environmental Research Center.”
Roger Hofseth says: “This multi-year collaboration with Tenet Partners is yet another example of how we are taking decisive steps forward in building our foundation for scalable sales growth. Building a brand needs to be done with a long-term, professional approach with the very best in the business. We have every confidence in Tenet Partners’ future success given their proven track record and enthusiasm towards the scale of the opportunity at hand. A recognizable brand will help drive sales purchased through the internet or directly through pharmacy, drug and retail stores. It is very important to “consume-ify” our natural ingredients in a way to connect with consumers all over the world. A successful brand will give us the best possible chance of success in the higher margin, direct to consumer vertical. We are delighted that Tenet will not only be our brand builder but also a meaningful investor in our business ensuring a perfect alignment of interests between us.”
This collaboration dovetails with the recent announcement of the hiring of senior sales executives from GSK and JNJ with Andy Gill and Will Urban Smith joining to expand HBC’s Consumer Health division. Their experience and knowledge from helping develop some of the world’s most recognizable consumer brands from Voltaren to Nicorette, will play a crucial role in the product development phase with Tenet and ensure the project is a success.
About Tenet Partners
Tenet Partners is a brand innovation firm that transforms organizations through a blend of insights, strategy, design and technology. Our mission is to help companies create brand value and open possibilities in today’s digital-driven and customer-focused world.
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