Kahala Corp. and Tim Hortons Inc. announced an agreement to test co-branding of Cold Stone Creamery and Tim Hortons in up to 50 stores in each chain in the United States by spring 2009. Co-branded stores will leverage complementary traffic patterns, creating cost efficient opportunities for further growth of both brands. Cold Stone Creamery drives significant customer traffic and sales in the evening market while Tim Hortons creates a substantial portion of its traffic and sales in the morning and lunch day parts. The companies recently co-branded the concepts in two existing Tim Hortons locations in Rhode Island with successful early results. In mid-February 2009, Tim Horton's products will be offered in an existing Cold Stone Creamery location in Ohio. Existing Cold Stone Creamery and Tim Hortons locations in Michigan, Western New York, Ohio, Rhode Island, Maine, and Connecticut will be identified and reconfigured to offer both brand concepts. The combination of Tim Hortons and Cold Stone Creamery products is ideal for both businesses and the customers.

Tim Hortons Inc. and Kahala Corp. will team up to create up to 100 co-branded stores that will offer customers both ice cream and coffee shop fare. These two companies will co-brand up to 50 stores in each chain in the U.S. by this spring.

Kahala Corp. announced that Chris Prasifka has resigned as president just four months after being promoted to the post.