New brands often partner with well-known brands under the assumption that they will benefit from the awareness and positive associations that well-known brands yield. However, this associations-transfer explanation may not predict co-branding results when the expected benefits of the co-branded product are presented simultaneously with the co-branding information. In this case, the results of co-branding instead follow the predictions of adaptive-learning theory which posits that consumers may differentially associate each brand with the outcome as a result of cue interaction effects. Three experiments show that the presence of a well-known brand can weaken or strengthen the association between the less-known brand and the co-branding outcome depending on the timing of the presentation of product benefit information. When this information was presented simultaneously with co-branding information (at a delay after co-branding information), the presence of a well-known brand weakened (strengthened) the association of the less-known brand with the outcome and thereby lowered (improved) evaluation of the less-known brand.N ew brands face many obstacles including the need to generate awareness in an often crowded marketplace and to build unique brand associations that can help meaningfully differentiate the brand. To jumpstart the creation of these associations, new brands often leverage external entities (other brands, events, causes, countries, people, etc.) that already possess valued associations in the hope that these desired associations will transfer to the new brand (Keller 2003). The widely accepted explanation for why such secondary associations would transfer to the new brand is derived from associative network models of memory that