IEG Sponsorship Report

September 20, 2010 800/834-4850 | www.IEGSR.com

In Depth Grocery Retailers Stock Shelves With New Sponsorships

Retail deal structures vary; vendor participation often critical for both sponsor and property.

While traditional grocery retailers, primarily , have historically represented one of the most active sponsorship categories, increased competition from mass merchandisers, warehouse stores and other less traditional food purveyors is driving sponsorship activity to record levels.

Retail consultancy Willard Bishop expects dollar share of food and consumables sold by traditional grocery retailers to decline from 47.5 percent in 2009 to 44.1 percent in 2014. Over the same period, it projects market share for non-traditional grocery retailers will rise from 37 percent to 40.2 percent.

Although the forecast rate of market share erosion is not quite as rapid as the firm predicted two years ago, when it said Sponsorships by Number of Deals non-traditional retailers would account for the majority of food sales by 2013, Willard Bishop still expects those retailers to Other 3% overtake traditional stores by 2017. Arts 5% Entertainment 7% In the face of that change, supermarket chains have stepped up sponsorship activity with a variety of property types. Causes 12%

Recent deals have come from Super Markets, Inc., Sports 52% which this summer came on board as the presenting sponsor of the November 21 Women’s Running Magazine Women’s Festivals 22% Half Marathon in St. Petersburg, Fla.; , LLC, which signed as a cosponsor of the NFL Baltimore Ravens; and The Co., which inked a partnership with the NBA Indiana Pacers and sibling WNBA Indiana Fever. © 2010, IEG, LLC. Source: IEG Research

In addition, , Inc. has grown its five-year-old partnership with Pennsylvania’s Pocono Raceway by taking title to the track’s ARCA Racing Series presented by Re/Max and Menards race, while expanded its partnership with October’s Big Fresno Fair in Fresno, Calif.

Save Mart sponsors the fair on behalf of its flagship supermarkets as well as its FoodMaxx discount chain, which serves as a reminder to properties to explore partnerships with multiple retail brands under the same ownership, possibly tapping additional marketing budgets for expanded deals.

© 2010 IEG, LLC. All rights reserved. 1 IEG Sponsorship Report

Structuring Deals With Retail Partners Retail sponsors can provide properties with two key benefits that SIDEBAR make them unique from any other category: promotional support 2010 Race To Savings Recap to tout a sponsorship, as well as access to consumer packaged companies and other vendors that sell through their stores. Race to Savings Deliverables (Track) Weekend event signage at Auto Club Speedway (Fall/ “Supermarkets are super powerful,” said Lynn Berling- Spring races) Manuel, CMO of American Youth Soccer Organization, which • Set of two double-sided concourse signs • Set of four Fan Tram signs works with The Kroger Co.’s chain. • Set of three Fan Zone signs • One Racefest sign On the vendor front, properties can leverage supermarket Public address announcements (Fall/Spring races) sponsors to gain the interest of potential partners in packaged • Two 30-second spots on race weekend goods and other categories that want to build a relationship with the retailer, as well as provide additional benefits to Sprint Vision (Fall/Spring races) • Two 30-second spots on race weekend existing sponsors that already sell through the trade partner. Event booths (Fall/Spring races) Deals with supermarkets are typically structured in one of two • One optional event booth in the valuable Fan Zone for both NASCAR event weekends ways: Cash deals that give the retail sponsor the right to sell • Agreed amount of worker passes cosponsorship to vendors, or promotional commitments in lieu of cash. Green Flag Cup/NNS (Stater Bros. 300/Camping World 300) • Opportunity for two chances to wave the green flag at qualifying With cash deals, supermarkets purchase sponsorship rights and then recruit vendors as cosponsors. The retailers Pace car rides (Fall/Spring races) • Two opportunities to ride pre-race in the official pace car of typically ask vendors to pay cash for the deals, thus offsetting the Stater Bros. 300 and Camping World 300 or partially offsetting their rights fees. Driver introductions (Spring race) • Two opportunities to ride pre-race parade lap on race day at In some cases, a portion of the cosponsors’ fees is shared the Stater Bros. 300 with the property. In others, the retailer retains all of the vendors’ dollars. Often, it is the property’s responsibility to Victory lane passes (Fall/Spring races) • Four passes to victory lane at the end of race day negotiate the cosponsorship deals. Luxury suite passes (Fall/Spring races) Typically, if a retailer is retaining all of the partner fees and/ • Twelve infield luxury suite passes complete with food and beverage for race weekend or the property is selling on the retailer’s behalf, the retail • VIP parking partner will pay a premium price for its sponsorship package, which often is the property’s highest sponsorship level. Tickets/parking (Fall/Spring races) • Twenty Saturday grandstand tickets • Forty Sunday grandstand tickets In the second scenario, in exchange for a package of • Parking both days sponsorship assets, the retailer agrees to promote the property and its sponsors in its circulars, on bags or through Race to Savings Deliverables (In-store) in-store displays and other promotions. In-store promotion—point of sale kit (Spring race)* • Up to four logos included in the in-store POS kit Most major retail chains are partial to cash deals when • Kits in all Stater Bros. stores two weeks prior and up to race working with pro sports teams and other larger properties. weekend for both fall and spring races • Customized POS for Stater Bros. 300 and Race to 75 On the flip side, deals done by smaller retailers, and those promotion with fairs, festivals and other smaller properties, are often – Double-sided aisle signs promotional commitments. – Display cards, stack cards – Shelf talkers Breaking It Down: Stater Bros. Vendor-funded Program – Aisle violators – 12-page special edition Stater Bros. Collectors Edition Supermarket chain Stater Bros. Holdings, Inc. liquidates its booklet low-seven-figure title of a February NASCAR Nationwide Series – One page of advertising space is available for manufacturer race at Fontana, Calif.’s Auto Club Speedway by offering to promote selected brand or message of choice

© 2010 IEG, LLC. All rights reserved. 2 IEG Sponsorship Report packaged goods companies the opportunity to participate in Spring race only: Two-week purchasing window for entire its Race to Savings promotion. program *Items may change for POS campaign that will be designed The retailer rolled out the program five years ago to drive for the fall race to include items for Racefest incremental traffic and sales volume. Two-week Race to 75 (Tracked by receipts for ticket “Stater Bros. came to us and said, ‘we need to justify our redemption) • Feature brand—inclusion of up to four brands in program relationship with the track and sport, and we need to see • Chance to qualify for free tickets to Auto Club 500 increased cash register ring counts at the store level,’” • Race to 75 program will have a two-week purchasing said Fritz Maskrey, Auto Club Speedway’s senior director of window corporate sales and marketing. • Consumers who purchase $75 or more in products receive a receipt good for a free Sunday Auto Club 500 ticket The track responded with the idea for a two-week in-store Guaranteed off-shelf display/ad promotion that includes a “Race to 75” offer for a free ticket • Eight main feature ads/display volume generators including to the NASCAR Sprint Cup event held the same weekend as two front-page ads • Mutually agreed upon item and date of activation the Stater Bros. 300 to consumers who purchase more than $75 worth of groceries in a single transaction. Media • Inclusion and brand tag mentions as a feature sponsor of Stater Bros. 300 on multiple radio and media outlets leading The program has paid off, driving incremental traffic and up to race weekend sales over each of the past five years, Maskrey said. Race To Savings: Program Timeline Ten Stater Bros. vendors pay $125,000 to $130,000 each for Two week in-store activation promotion (two weeks prior their brands to participate in the promotion. to race weekend) Eight weeks prior to in-store activation As summarized in the Race to Savings Recap provided by Auto • CPGs provide four participating brands to be used on track Club Speedway (see Sidebar), each vendor receives a number signage, radio spot tag and in-store ceiling banner of benefits, including signage, sampling rights and hospitality Six weeks prior to in-store activation at the track, as well as inclusion in end-aisle displays, point-of- • CPG artwork/ad due for tabloid sale collateral and other in-store promotional assets. Four weeks prior to in-store activation • CPG display space confirmation Vendors also receive a presence at the Stater Bros. Racefest • For space and location allocation presented by Pepsi, an event that occurs prior to October’s Camping World 300 Nationwide Series race and Pepsi Max Three weeks prior to race weekend • CPG Sprint Vision commercial spot due 400 Sprint Cup race at Auto Club Speedway. One week prior to race weekend • CPG names that will participate in the track assets are due The retailer and venue both play a role in securing vendor to Auto Club Speedway partners, said Maskrey, who has brought The Clorox Co. and other existing track sponsors into the promotion. The Race Source: Auto Club Speedway to Savings platform gives each sponsor the opportunity to participate in a unified program that carries more muscle than if they activated on their own, he said. SIDEBAR Retailers’ Goals And Objectives For Sponsorship “We said, let’s put this under one umbrella and work together.” Below, retail hot buttons properties should address when approaching supermarkets and other store types for sponsorship, including tips on including vendors in retail programs: Auto Club Speedway owner Int’l Speedway Corp. has conducted similar programs at other tracks, Maskrey said. Drive store traffic. Rightsholders should offer promotional platforms that increase the number of shoppers coming through a retailer’s doors. Current examples of how Sources properties are accomplishing that include: American Youth Soccer Organization, Tel: 800/872-2976 • Bi-Lo, LLC leverages its partnership with Clemson Auto Club Speedway, Tel: 909/429-5000 University athletics by hosting the school’s radio network’s weekly Tiger Calls coaches’ call-in show at area stores

© 2010 IEG, LLC. All rights reserved. 3 IEG Sponsorship Report

throughout the football and basketball seasons. The retailer sections, such as produce, deli and bakery. will host the football show at 13 locations this fall. For example, Kroger earlier this year used its primary “We had a call-in show last night, and we had a line of sponsorship of a JTG Daugherty Racing Sprint Cup entry at fans at each commercial break waiting to get the coach’s the Daytona 500 to promote its floral department. autograph,” said Mike Money, director of marketing for Publix will activate the Women’s Running Magazine Women’s Clemson University athletics. Half Marathon by providing breakfast from the Publix Bakery • Giant is activating its new Ravens tie by supporting the to the St. Petersburg, Fla. event participants. NFL team’s annual food drive at its Baltimore-area stores, In-store pharmacies are a particular area receiving plenty with the goal of collecting more than 40,000 pounds of non- of marketing attention from supermarkets in the current perishable food items for the Maryland Food Bank. environment. Giant’s partnership with the Ravens includes • Kroger this summer kicked off its new partnership with the the pharmacy category, as does Tops Markets, LLC’s NBA Pacers by hosting player appearances at four Indiana presenting sponsorship of the Taste of Buffalo. stores. “Many supermarkets have pharmacies that have very loyal • Weis Markets activates its partnership with Pocono customers and they are trying to transfer that loyalty to Raceway by offering race coupons. their other customers,” said Ed Burchell, the Ravens’ vice president, regional partnerships & sales. • Hy-Vee, Inc. last year leveraged its partnership with the NFL Kansas City Chiefs by creating and selling a co-branded Access vendor dollars beyond trade funds already commemorative cup that celebrated the team’s 50th committed to the retailer. When selling participation in retail anniversary. The retailer also sells licensed apparel and sponsor programs to packaged goods companies and other headwear. vendors, properties should seek dollars not already allocated to the retailer. Promote private-label brands. Retailers are putting greater emphasis on their own private-label products, which typically “Retailers want to retain their geographic marketing, shopper have higher margins than mass-market brands. marketing and trade funds and receive incremental support from a manufacturer,” said Auto Club Speedway’s Maskrey. For example, Winn-Dixie Stores, Inc. has rolled out a co- branded bottled water around its partnership with the NFL Make sure both parties know who is responsible for Jacksonville Jaguars. The product is touted as the official approaching what companies. When pitching vendors, bottled water of the Jags. properties must work closely with their retail partners to make sure each party is aware of the companies the other is The water—which Winn-Dixie says is the NFL’s first co- approaching. branded bottled water—has category exclusivity for sales at EverBank Field and also is available at Winn-Dixie and That was a challenge the Taste of Buffalo faced several SaveRite stores in Northeast and Southeast Georgia. years ago when pitching a program on behalf of Tops Supermarkets. The retailer and the event both found Properties should provide Reward loyalty card members. themselves talking to the same companies. benefits that can help boost the value of retailer frequent- shopper rewards programs. The event has since overcome that challenge by working with the retailer’s pharmacy category manager to identify vendors For example, Bi-Lo is activating its Clemson tie through a to be approached. Tailgate with the Top Tigers promotion for its Bonuscard holders. The promotion offers a chance at five suite tickets “That way I also make sure the company is not a partner to the Clemson/Georgia Tech football game, pre-game field we already have or that will conflict with anyone with whom passes, a tour of Memorial Stadium, tailgating with a head we have contractual obligations,” said Connie Nitkowski, coach and an interview opportunity on Tiger Calls. president of Sell-utions, Inc., a promotion marketing agency that sells sponsorship for the Taste of Buffalo. Fans can enter the contest through Bi-Lo’s and Clemson athletics’ Web sites. Sources Auto Club Speedway, Tel: 909/429-5000 Similarly, Winn-Dixie recently launched a Tealgate and Winn Baltimore Ravens, Tel: 410/701-4000 sweepstakes around its Jaguars deal. Consumers who use Clemson University, Tel: 864/656-1935 their Winn-Dixie Customer Reward Card are entered into Sell-utions, Inc., Tel: 716/656-1214 a randomly selected drawing offering four game tickets, a catered pre-game tailgate party and participation in the Bag It and Winn on-field promotion, which dangles the chance to win up to $2,000 in Winn-Dixie gift cards. Promote specific departments. In the competitive grocery environment, supermarkets and other food stores often seek to differentiate themselves by highlighting individual store

© 2010 IEG, LLC. All rights reserved. 4 IEG Sponsorship Report

September 20, 2010 800/834-4850 | www.IEGSR.com

One-on-One Who’s The Official Bank of the NBA? BBVA, That’s Who

NBA sets example that big deals can come from unlikely sources; close look at BBVA reveals company primed for a major deal.

Demonstrating that rightsholders are wise to prospect beyond companies that are well-know entities with major brands, the NBA’s new official bank is BBVA, a Spanish conglomerate whose U.S. subsidiary ranks as the 15th largest U.S. commercial bank based on deposit market share.

Although currently only a regional player in this country, with 720 branches located primarily in Sunbelt states, two signs that pointed to the company’s potential to be a major sponsor were its rapid growth through acquisitions and an estimated multimillion-dollar, high profile sponsorship in its home country. Source: NBAE/Getty Images

Success from the two-year-old title sponsorship of Spain’s La Liga BBVA pro soccer circuit prompted BBVA—full name Banco Bilbao Vizcaya Argentaria, S.A.—to sign its multiyear deal with the NBA, WNBA and NBA D-League, a tie that includes assets in the U.S., Spain and Puerto Rico.

The deal represents the NBA’s first partner in the banking category in recent memory, said Peter Farnsworth, the league’s senior vice president of global business development, adding that the sponsorship took nearly eight months to put together.

BBVA’s interest in the basketball tie was helped by the success of Pau Gasol and other Spanish players in the NBA, as well as the Spanish national team’s silver medal performance at the 2008 Olympics, losing a close game to the U.S. in the final game.

The deal will be activated in the U.S. through BBVA Compass, the trade name for Birmingham, Ala.-based Compass Bancshares, Inc., BBVA’s wholly owned subsidiary.

IEG SR spoke with Tiffany Dunne, executive vice president of corporate communications and corporate responsibility for BBVA Compass about the company, plans for the new sponsorship, the role of sports marketing in the company’s marketing mix, and other topics.

Below are edited excerpts from the conversation.

IEG SR: To many in the U.S., it may seem that BBVA came out of nowhere to become an NBA sponsor. Can you give some background on the company?

© 2010 IEG, LLC. All rights reserved. 5 IEG Sponsorship Report

Dunne: BBVA is an international financial services group. We are the second largest bank in Spain and the largest bank in Mexico. We have a presence across Latin America including Argentina, Venezuela, Chile and Columbia. We also have a presence in China. BBVA has had a presence in New York City since the late ‘80s.

IEG SR: Can you address how BBVA has grown in the U.S. through a series of acquisitions?

Dunne: We had our first acquisition in 2004 with Valley Bank, and we have since acquired three other banks in Texas. In 2007 we acquired Sunbelt-based Compass Bank. That was the largest bank we acquired, and we subsequently merged and rebranded all of our U.S. banks under the BBVA Compass banner.

Last year we added Guaranty Bank to the BBVA Compass family in an FDIC-assisted transaction.

IEG SR: La Liga BBVA represents a major sponsorship investment. What role does sponsorship play in BBVA Group’s marketing mix?

Dunne: It plays a huge role. Sports marketing is one of the primary vehicles we use to market BBVA Group.

Research shows that people are passionate about sports and the sports teams they love. Marketing has expanded well beyond traditional media over the last several years, and as a result sports sponsorships represent a bigger piece of our marketing strategy.

IEG SR: What specific role does La Liga BBVA play?

Dunne: We use sponsorship as a platform to connect with consumers. We have leveraged the sponsorship with a lot of different promotions including ticket sweepstakes and the chance to take a shot at the goal during halftime.

Sponsorship provides a channel to get closer to consumers. Some sponsorships are all about logo placement; that branding piece is important, but this is more of a channel to get closer to customers through an organization they are passionate about.

IEG SR: Why was the NBA appealing?

Dunne: The NBA has been on our radar for a while. Basketball is extremely popular on a global level, and it has always been something that we wanted to look at.

In the first year of the sponsorship we will focus on the U.S., Spain and Puerto Rico. We will potentially expand the sponsorship to other markets where basketball is popular, such as Argentina, Mexico, Venezuela and China.

We are official bank of the NBA, the WNBA and the NBA Development league. We were very interested in all of those pieces. Many companies just want the big piece, the NBA, and its well known players.

That’s important, but we want to connect our values to sports sponsorships. We like the opportunity to promote females and female sports.

We received exposure on player jerseys during the WNBA finals. We are still in discussions on what that will look like next season.

We are also excited about the D-League and the access and opportunities it provides. Those pieces are going to be key elements of our sponsorship program.

We were looking at television numbers yesterday. NBA games are televised to 125 countries. That’s a huge piece related to branding.

© 2010 IEG, LLC. All rights reserved. 6 IEG Sponsorship Report

In the U.S., we’ve had some good sized acquisitions over the last two years. This will propel our brand even further and let people know we are out there.

We will also use the sponsorship to let people know who we are. We were one of the few financial institutions in the world that did not take government aid as a result of the financial crisis.

A number of questions came up over the past two years that were critical of financial institutions and their sponsorship activity. The NBA is an appropriate partnership and sports sponsorship is an effective placement of our marketing funds.

IEG SR: How will you activate the sponsorship?

Dunne: We will definitely use the partnership for retail promotions. We will focus on geographic areas where we have a physical presence.

We are the fourth-largest bank in Texas, a state that is home to three NBA teams. We also have a strong presence in Denver and Phoenix, and we will look to conduct promotions in those markets as well. California is our newest market, so we will be able to expand our brand awareness in key markets there as well.

We also plan to run promotions in states that don’t have an NBA team, including our headquarters in Alabama. There are NBA fans in Alabama, and we want them to participate with the NBA and attend games.

Corporate responsibility is a key component of BBVA and through the NBA Cares program we expect to bring events that help the communities we serve. Events could include building basketball courts in an area in need of recreational activities.

We want to use the partnership to engage our whole spectrum of clients. We want to help customers that are passionate about basketball by giving them an opportunity to participate in greater depth with something they care about.

Source BBVA Compass, Houston office, Tel: 713/831-5719

© 2010 IEG, LLC. All rights reserved. 7 IEG Sponsorship Report

September 20, 2010 800/834-4850 | www.IEGSR.com

Sponsor Profile Levi’s Tries On Another Sponsorship Style

Iconic player becomes latest clothing company to increase sponsorship activity.

When it comes to sponsorship, Levi Strauss & Co. can best be described as a dabbler, especially over the past 10 years. The iconic apparel company had a partnership with Live Nation predecessor SFX Entertainment early in the last decade, an associate-level deal with NASCAR Sprint Cup team Hendrick Motorsports and driver Jimmie Johnson from 2004 to 2007 and, until last year, sponsorship of a BMX cycling team.

The company’s latest dip in the event marketing waters has come in the form of co-title of the Rolling Roadshow, a series of nine free outdoor movie screenings in August, and cosponsorship of the September 11-12 MusicFestNW in Portland, Ore. Both deals are on behalf of its flagship Levi’s line.

The Levi’s deals are the latest examples of sponsorship from apparel companies and brands, a category that has significantly increased its use of the medium over the past year. Recent examples include American Eagle Outfitters, Inc. (“American Eagle’s Sponsorship Program Takes Flight.” 8/9/10) and the Big East Conference, and Donna Karan Int’l Inc. (“Clothing Brands Continue to Try on Sponsorship,” 5/17/10) and the MLB New York Yankees.

Levi’s is using sponsorship to connect with a young adult audience, play up its classic American styling and “effortless cool” positioning, and support its Go Forth campaign, a two-year marketing effort that promotes how a new generation of “real workers” is helping to make the world a better place.

The Levi’s We Are All Workers/Alamo Drafthouse Cinema Rolling Roadshow showcases films featuring the “most celebrated celluloid workers.”

The series screened the movies in outdoor settings where scenes from each film were shot or set. Films and locations included Dirty Harry at Washington Square Park in San Francisco; Jackie Brown at the Del Amo Fashion Center in Torrance, Calif.; the Rocky trilogy at the Philadelphia Museum of Art.

“The We Are All Workers Rolling Roadshow gives us an opportunity to take an irreverent approach to the democracy of work and our Go Forth campaign as we blaze a trail across the country,” said Doug Sweeny, vice president of Levi’s brand marketing, in a statement.

Levi’s and tour producer Alamo Drafthouse—franchiser of Alamo Drafthouse Cinemas, movie houses that show first-run and

© 2010 IEG, LLC. All rights reserved. 8 IEG Sponsorship Report other films and also serve food, beer and wine—teamed with location-based social networking application provider Gowalla, Inc. on a Rolling Roadshow promotion.

The first 50 Gowalla users who checked in at a series of locations related to each film received VIP passes to the screening in that market. The list of locations was available by following Levi’s on Gowalla.

The Rolling Roadshow sponsorship also afforded exposure in ads promoting the free screenings, branding on the event’s projection truck and a banner located under the movie screen. Levi’s also ran a TV spot prior to each screening, said Tim League, founder and CEO of Alamo Drafthouse.

League developed the partnership with Christian Parkes, director of Levi’s brand marketing. The two collaborated two years ago when Parkes was U.S. brand manager of sportswear at Nike, Inc., said League, who worked with Parkes on a one-off Rolling Roadshow Halloween screening of The Shining at Mt. Hood, Ore.’s Timberline Lodge, which appeared in the movie.

In addition to presence on site, including title of the main stage, Levi’s activated MusicFestNW by offering live online streaming of headliners The Decemberists and The National through video platform Stickam.

To access the stream, fans had to “like” Levi’s on the brand’s Facebook page.

Sources Levi Strauss & Co., Tel: 415/501-6000 Alamo Drafthouse, Tel: 512/219-7800

© 2010 IEG, LLC. All rights reserved. 9 IEG Sponsorship Report

September 20, 2010 800/834-4850 | www.IEGSR.com

Category Update Energy Utilities Looking To Promote Peak-reduction Programs

Sponsorship can provide needed promotional platforms and incentives for participating in new demand-response programs.

In an already busy year for new sponsorships from utility companies and other energy providers, at least one player has found yet another good reason to partner with properties.

On the heels of sponsorships prompted by smart grid initiatives (“Smart Grid Initiatives Spur Energy-Related Sponsorships,” 6/18/10), plus activity spurred by developments in solar energy and other renewable sources (“Solar Energy Companies Light Up More Properties,” 9/13/10), comes a first-time partnership promoting a program to encourage consumers to reduce energy usage during peak demand hours.

Baltimore Gas and Electric Co. has signed with the NFL Baltimore Ravens to promote its PeakRewards program. PeakRewards is part of a broader BGE Smart Energy Savers Program that includes rebates on energy-efficient appliances and home energy check-ups.

“We have an aggressive goal to help the state of Maryland reduce energy usage 15 percent by 2015, and the Ravens partnership seemed like an innovative way to promote our message of energy efficiency,” said Robert Gould, a BGE spokesperson.

A precursor to smart grid technology that accomplishes the same goal, PeakRewards and other demand-response programs let energy distributors monitor and control home energy usage, such as automatically turning down air conditioners during peak demand hours.

BGE’s PeakRewards electricity customers allow the company to cycle their central air conditioner compressors and electric heat pumps on and off periodically between 1 p.m. and 7 p.m. Participating customers receive energy bill credits up to $200 a year depending on which of three cycling levels they choose.

BGE, which rolled out PeakRewards in mid-2009, is using the Ravens partnership to build visibility and provide incentives for spreading the word about the program.

The utility is activating the tie by adding team-themed prizes to its four-month-old PeakRewards ReferralRewards sweepstakes.

© 2010 IEG, LLC. All rights reserved. 10 IEG Sponsorship Report

Consumers who submit contact information for friends and family are entered into a drawing offering passes to a Ravens hospitality experience, trips to away games and other team-themed prizes in addition to gift cards, an Energy Star appliance and other items.

BGE, which initially ran the promotion from March 11 to April 30, added the Ravens prizes to the program’s second run from June through November. Consumers enter the promotion at PeakReferrals.com.

BGE also is promoting PeakRewards through the team’s radio, TV and print inventory, said Keisha Clarke-English, a BGE senior marketing consultant.

With a growing number of energy providers offering similar energy efficiency and demand-response programs—many of which are marketed under their own brands—properties would be wise to target such efforts for new deals or help existing utility partners promote those services.

“Most utilities have similar programs,” Clarke-English said. “They may operate differently and have different incentives, but they all help promote energy efficiency.”

BGE is a subsidiary of Constellation Energy Group, Inc.

Sources Baltimore Gas and Electric Co., Tel: 410/470-2800 Baltimore Ravens, Tel: 410/701-4000

© 2010 IEG, LLC. All rights reserved. 11 IEG Sponsorship Report

© 2010 IEG, LLC. All rights reserved. 12