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  TCIG: The Pride of Brand Ownership   TCIG: The Pride of Brand Ownership  Renée Alexander  
         
 
TCIG: The Pride of Brand Ownership A cursory look at the history of Tribal Councils Investment Group reveals what appears to be a typical successful start-up company: Some money was cobbled together; the firm was launched; it made some acquisitions and mixed in some organic growth, and voila—it’s part of the establishment. Yet, peeling back a single layer of the onion shows that the TCIG brand had to blaze its own trail and overcome obstacles that other companies simply don't have to deal with.

The Winnipeg-based company was created 17 years ago by seven aboriginal tribal councils in Manitoba, one of Canada’s three Prairie Provinces. The brand behind TCIG was to effectively represent tribal communities and values by appealing to local consumers with the message of establishing financial independence and economic fortitude. Each tribal council invested CAD$ 25,000 into the kitty for a total of CAD$ 175,000. Soon after, its first company, Arctic Beverages, became Pepsi’s official bottler serving primarily aboriginal communities in northern Manitoba, northern Saskatchewan, northwestern Ontario, and Nunavut, a geographic area covering about 20 percent of Canada.

 
TCIG's branding capitalized on the aboriginal communities’ pride of ownership. Its logo features a soaring eagle and an iconic Indian wigwam complete with traditional markings. The "Our Vision" section of its website explains its intentions simply: "To contribute to First Nations' SELF-SUFFICIENCY by generating WEALTH and being a major player in Canadian and international economies." Establishing its brand has been instrumental in connecting with the hearts and minds of the local Indian populations. Through heritage and shared identity, the brand is building an auspicious future.

Arctic's sales of Pepsi products, which had historically run neck-and-neck with those of Coca-Cola, tipped heavily in Pepsi’s favor. Fast forward to today and TCIG has amassed an eight-figure portfolio with investments in a wide variety of sectors, including financial services, hotels, gasoline, trucking, health care, golf courses, retail, a professional hockey team, and a regional airline. In fact, its portfolio of investments is now worth more than CAD$ 50 million.

Sam Anderson, TCIG’s vice president of community relations, says the company started making investments—usually in the neighborhood of 20 percent—in companies that its people could support with their patronage. Slowly but surely, bolstered by local loyalty and growing brand recognition, TCIG evolved from a niche player into a mainstream force.

Anderson says the transformation of the brand was done with wise and strategic investments.

“We’ve marketed ourselves well and had strong backing from our communities. That’s been the push behind us. Whenever you have ownership, you tend to use (its products) more. Instead of the red can, our people bought the blue can. We’ve proven we can take over a mainstream business and make it viable,” he says.

“When we began we were just a bunch of Indians trying to start something. I’m glad somebody took a chance on that. I’m glad we went beyond what people think of First Nations people. I think we’ve proven we can fit into any world and we’ve broken ground so that when a new aboriginal business starts up, people can take chances on it, too.”

Robert Warren, director of the Asper Centre for Entrepreneurship at the University of Manitoba, says TCIG’s initial challenge was to convince the business community that it knew what it was doing when it came to investments. Then it had to overcome all the negative stereotypes associated with aboriginal people, such as alcoholism, high unemployment, high crime rates, and financial dependence on the federal government.

The success of Arctic Beverages was the first step towards gaining widespread acceptance and pushing those stereotypes to the background, he says.

“That was a great example of a business that really flourished in the aboriginal-dominated sector of the province. They showed they could get a consistent return on it and that gave people confidence that they understood investments and business development. They then went out and brought in more people with experience in investments and that said, ‘we understand the process and all the things we have to consider,’” he says.

 
Warren notes TCIG’s move into the mainstream economy was precipitated by a lack of financial investment and business experience in the aboriginal community.

“In order to get a return on their investments and more access to capital they had to look at a much more mainstream approach,” he says.

Anderson says TCIG’s plan all along has been to bring a First Nations branding to mainstream companies with which it partners. There’s no doubting the economic clout that comes along with that branding perspective, as there are more than 100,000 indigenous people representing 55 First Nations communities in Manitoba, equal to about 10 percent of the province’s population.

“Our people spend billions of dollars a year in Manitoba,” he says. But until the First Nations organized themselves and established a contemporary brand for their people and TCIG, their purchasing power and market influence was haunted by the negative bias held by much of the mainstream in the past. Times have changed.

Arctic was recently presented with Pepsi's "Canadian bottler of the year" award, and Anderson says he’s optimistic the “snowball effect” will continue with a recently announced agreement with its sister company, Frito Lay. The plan is to leverage the pride of ownership to gain the same market penetration in its Arctic Beverages territory with Frito Lay potato chips and other snack foods that it did with Pepsi products.

Allan McLeod, CEO of TCIG, said the Pepsi award is recognition that its business plan is working. But even more crucial is TCIG’s long-term goal of helping an often downtrodden people succeed financially, under their own management, and without government aid.

"Our vision is long term and it must happen for our people," he says. "We have to become financially independent and significant players in the mainstream economy. Financial independence means you don't have to worry about money. We're about creating wealth for our future generations and providing them with opportunities in management. We want to give them opportunities to be successful and to be a productive part of society."

Warren says one sure-fire sign that the TCIG has gained full membership in the mainstream economy is the fact its executives are invited to a never-ending stream of corporate golf tournaments in the summer—a relatively new venue for discussing business for the tribes.

“That means they’re an investor in Winnipeg that has clout. You can’t afford to do something in this town that TCIG isn’t a part of (now). They’ve got to be seen as at least supporting it, if not being actively involved,” he says.

By successfully branding themselves beyond shallow stereotypes and ill-informed preconceptions, the tribal councils of Manitoba have empowered themselves with the truth of who they are and what they are capable of accomplishing in mainstream business.     

[7-Jan-2008]

 
  
  

Renée Alexander is a freelance business and lifestyle writer based in Winnipeg, Canada.

     
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