Ieg Sponsorship Report Ieg Sponsorship Report the Latest on Sports, Arts, Cause and Entertainment Marketing

IEG SPONSORSHIP REPORT IEG SPONSORSHIP REPORT THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING

JULY 30, 2012 WWW.IEGSR.COM

WHO DOES WHAT CANDY MAKERS UNWRAP NEW SPONSORSHIPS

Consumer engagement and retail promotions are the two primary drivers in the candy category.

Candy marketers are sweetening the sponsorship pot.

Looking to promote new products and engage consumers and the trade, candy companies are signing new deals with pro sports teams, food festivals and nearly everything in between.

Among those leading the charge: Jelly Belly Candy Co. The candy marker has signed a handful of new ties as it moves away from local sampling programs in favor of air shows, theme parks and other family-friendly lifestyle events that draw large audiences.

New deals include the Comcast Bite of Seattle, CMA Music Festival and the Wisconsin State Fair presented CANDY COMPANY SPONSORSHIPS BY NUMBER OF DEALS by U.S. Cellular. Jelly Belly also has signed a new tie with SeaWorld Parks & Entertainment, around which the company will sample at Halloween events at parks in

Orlando, San Antonio and San Diego.

Other players also are stepping up sponsorship. Just Born, Inc. in April announced a new partnership between Goldenberg’s Peanut Chews and the MLB New York Yankees, while Peeps & Co. has come on board as a new sponsor of next month’s Musikfest music festival in Bethlehem, Penn.

Mars, Inc. this year is supporting its long-running NASCAR Sprint Cup Series program with a four-track deal with Speedway Motorsports, Inc. The candy maker © 2012 IEG, LLC. All rights reserved. is leveraging the partnership with the M&M’s Racing Best Seats in the House promotion at Bristol Motor Speedway, Charlotte Motor Speedway, Kentucky Speedway and New Hampshire Motor Speedway.

At the same time, The Hershey Co. is negotiating a hybrid sponsorship/licensing deal with IMG College on behalf of its Reese’s Peanut Butter Cup brand, sources said. The deal would support the brand’s sponsorship of the NCAA, Big East Conference and other college sports properties.

Dollar sales in the chocolate category—which includes everything from candy bars to gift boxes and sugar-free confections—grew 5.3 percent in the year-ended July 8, 2012, according to SymphonyIRI Group, a market research firm.

Below, six sponsorship hot buttons for the candy category:

Gain platforms for retail promotions. As a category largely driven by impulse purchases, candy makers look for partnerships that can help their products stand out at the point of purchase.

For example, Hershey last year activated the NHL in Canada with an in-store promotion on behalf of the Reese’s Peanut Butter Cup brand. The sweeps dangled trips to tent pole NHL events including the Bridgestone NHL Winter Classic, All-Star Game and NHL Awards, culminating with the Reese’s Raise the Cup promotion around the 2012 Stanley Cup Final.

Hersey ran the promotion at mass merchandisers, large-format grocery stores and gasoline and convenience store chains across Canada.

“The promotion engaged fans at the most heightened time of the season and brought a message to life in nontraditional channels for the league,” said Kyle McMann, vice president of integrated marketing with NHL Enterprises, noting the NHL has less penetration in gasoline and c-store chains than other retail formats.

Hershey last year extended the NHL partnership with a new three-year tie.

Drive sales during key consumption periods. Like other packaged foods companies, Mars, Inc. leverages NASCAR and the NFL to drive sales around races and games.

“We want consumers to think about M&M’s, Snickers and other products when they’re preparing for a game or having a Super Bowl party,” said Lauren Nodzak, PR manager for Mars Chocolate North America.

Mars touts the products and their sponsorships through 360-degree marketing programs that include TV ads and in- store marketing collateral.

Create novelty products. With sales of novelty products rising 38 percent—the fastest growing segment of the chocolate category—marketers are increasingly leveraging sponsorship with property-themed products.

Case in point: Hershey plans to activate the 2012-2013 NHL season by creating hockey-themed product around major NHL events.

“They’re looking to exploit key thematic windows through novelty seasonal chocolates,” said McMann.

Sample product. Candy companies frequently use sponsorship to sample new products and line extensions.

The Jelly Belly Candy Co. is using the Wisconsin State Fair, Taste of Dallas presented by Toyota and other events to promote two new products; Jelly Belly Chocolate Dips and Jelly Belly Snapple, a line of jelly beans inspired by Snapple flavors.

The company also uses events to sample and promote its broad array of jelly belly flavors, many of which can be combined to create new tastes.

“We want to make sure people know about our variety of flavors and how to combine them,” said Rob Swaigen, Jelly Belly Candy Co.’s vice president of marketing.

Promote brand heritage. Some candy companies use sponsorship to promote brand heritage and regional roots.

Just Born aligned with the New York Yankees to promote Peanut Chews, a brand with a nearly 100-year-old history and deep ties in the Mid-Atlantic region.

“Aligning with a legendary team is a great fit for our heritage brand,” said Bob Zender, Peanut Chews marketing manager, in a statement.

The sponsorship includes a tie to the “This Day in Yankees History” pre-game LED feature and presenting sponsorship of the Aug. 28 Yankees Old School Pennant Night promotion.

Gain on-site sales rights. In addition to sampling rights, candy companies frequently look for sales rights at sponsored events.

Peanut Chews gains sales rights at the Highlanders concession stand and Dylan’s Candy Bar kiosk in Yankee Stadium, while Mars receives sales rights for candy and ice cream products at Six Flags theme parks.

Jelly Belly Candy Co. 1 Jelly Belly Ln. Fairfield, CA 94533

Rob Swaigen, vice president of marketing 707/428-2800

Sponsorship/Activation Strategy: The maker of jelly beans, gumballs, gummies and other sweet treats uses sponsorship to sample product and create memorable experiences. “The impetus behind our sponsorships is to leave a long-lasting impression on consumers,” said Swaigen. The privately-held company this year has moved away from mobile sampling programs in favor of food festivals, air shows and other lifestyle events that draw large audiences. New ties include the CMA Music Festival, Comcast Bite of Seattle and Wisconsin State Fair presented by U.S. Cellular. Jelly Belly targets all consumers, with a focus on women and children. Sponsors Jelly Belly Pro Cycling team and other endurance sports properties on behalf of Sport Beans, a seven-year-old line of energizing jelly beans.

Current deals: Title: Jelly Belly Pro Cycling Team presented by Kenda. Cosponsor: CMA Music Festival; Comcast Bite of Seattle; EQC Taste of Tacoma; Food Network South Beach Wine & Food Festival; Minor League Baseball Triple-A Sacramento River Cats; SeaWorld Parks & Resorts (three parks); South Beach Wine and Food Festival; Taste of Colorado; Taste of Dallas presented by Toyota; Wisconsin State Fair presented by U.S. Cellular. Sport Beans: Marine Corps Marathon & Historic Half Marathon; Nature Valley Bicycle Festival.

Additional comments: Jelly Belly in 2011 sponsored Kina Grannis’ world tour following the release of the singer- songwriter’s In Your Arms video; the stop-motion video was made with roughly 300,000 Jelly Belly jelly beans. The company has endorsement deals with drag racer Jim Pace, pilot Brant Seghetti, LPGA Tour pro Carin Koch and other athletes. Posts sponsorship guidelines on www.JellyBelly.com; the company in September will start reviewing proposals for 2013 events.

Just Born, Inc. 1300 Stefko Blvd. Bethlehem, PA 18017

Brian Bachrach, senior brand manager 610/867-7568

Sponsorship/Activation Strategy: The company known for Hot Tamales, Mike and Ike, Peeps, Peanut Chews and other brands uses sponsorship to build visibility, promote brand positioning and drive retail traffic. Just Born also uses sponsorship to promote brand heritage: The company this year partnered with the MLB New York Yankees on behalf of Goldenberg’s Peanut Chews, a product with deep ties in the Mid-Atlantic region. Just Born frequently sponsors properties located near its corporate headquarters. For example, the company this year inked a new tie with the Musikfest music festival on behalf of its Peeps & Co. retail brand. Just Born and the music festival are both based in Bethlehem, Penn.

Current deals: Just Born: Alex’s Lemonade Stand Foundation; JCC Maccabi Games. Goldenberg’s Peanut Chews: MLB New York Yankees. Mike and Ike: Dorney Park & Wildwater Kingdom, Allentown, Penn. Peeps & Co.: Musikfest, Bethlehem, Penn. Multibrand: University of California, Berkeley.

Additional comments: Peeps & Co. is activating Musikfest with appearances by the Peeps mascot, the Peepster chick car and other on-site activities. Sponsors University of California, Berkeley on behalf of Hot Tamales and Mike and Ike.

The Hershey Co. 100 Crystal A Dr. Hershey, PA 17033

Drew Iddings, senior manager, consumer promotions 717/534-4200

Sponsorship/Activation Strategy: Hershey focuses sponsorship on Reese’s Peanut Butter Cup and the brand’s ties to the NCAA, Big East Conference and other collegiate sports properties. The chocolate giant activates the NCAA with the Reese’s College All-Star Game, a free event that features two teams composed of the country’s top senior collegiate student-athletes. Hershey plans to expand its involvement in college sports with a hybrid sponsorship/ licensing deal with IMG College, sources said. Hershey in 2011 extended its one-year-old partnership with the NHL in Canada with a new three-year tie; the candy maker activates the sponsorship with in-store promotions at grocery stores and other trade channels. Other Hershey brands include Almond Joy, Twizzlers and York Peppermint Patties.

Current deals: Hershey’s: Title: Hershey’s Track & Field Games. Cosponsor: American Alliance for Health, Physical Education, Recreation and Dance National Convention & Exposition; Children’s Miracle Network; Northeast Conference; Rite Aid Cleveland Marathon; Robert Morris University Athletics; United Cerebral Palsy Assn. Reese’s Peanut Butter Cups: Big East Conference; Chip Ganassi Racing; Mountain West Conference; National Assn. of Basketball Coaches; NCAA.

Additional comments: Sponsors Northeast Conference on behalf of Hershey Entertainment & Resorts Co. Hershey Entertainment and Resorts Co. owns the AHL Hershey Bears. GMR Marketing helps negotiate and activate ties.

Mars, Inc. Mars Chocolate North America 6885 Elm St. Mclean, VA 22101

William Clements, vice president, sponsorships and sports marketing 703/821-4900

Sponsorship/Activation Strategy: Maker of M&M’s, Snickers, Milky Way and other candy products uses sponsorship to engage consumers and tap into fan loyalty. “Sponsorship is extremely important to Mars. It allows us to connect with consumers in a way that you can’t do with traditional media,” said Lauren Nodzak, PR manager for Mars Chocolate North America. From a national level, Mars focuses on NASCAR, the NFL and Six Flags theme parks. Activates the No. 18 Joe Gibbs Racing NASCAR Sprint Cup Series team and driver Kyle Busch through www.MMS. com/us/racing; the site hosts a sweeps that dangles a Toyota Camry following each Busch victory. NASCAR tie affords exclusivity in the chocolate, chocolate bar and cheese filled snacks category. Uses Snickers as the lead brand around NFL partnership; Mars activates the tie with a Super Bowl promotion that offers fans the opportunity to celebrate on the field with the winning team after the game. Supports NFL league partnership with 10 team deals. Sponsors regional and local properties to build relations with trade partners and support markets where it operates manufacturing facilities. Mars also uses sponsorship to engage employees.

Current deals: Mars Chocolate North America: QuickChek New Jersey Festival of Ballooning in association with PNC. M&M’s: Title: Joe Gibbs Racing NASCAR Sprint Cup Series team. Cosponsor: EAA AirVenture Oshkosh.; Food Lion Speed Street 600 Festival; NASCAR Hall of Fame; Sheridan WYO Rodeo. Snickers: Copper Mountain, Summit County, Colo.; NFL Atlanta Falcons, Chicago Bears, Cincinnati Bengals, Dallas Cowboys, Houston Texans, Indianapolis Colts, New York Giants, New England Patriots, New Orleans Saints and Pittsburgh Steelers; Snowshoe Mountain, W.V.; USL Harrisburg City Islanders. Multibrand: NASCAR, NFL; Six Flags.

Additional comments: Mars earlier this month announced a $5 million donation to the Smithsonian’s National Museum of American Natural History, around which it will create and title a new gallery that highlights business and innovation in the U.S. Activates Six Flags with M&M’s, Snickers, Milky Way, Dove and other brands. Sponsors Rock ‘n’ Roll Marathon Series on behalf of Snickers Marathon energy bar. Team Epic manages NFL partnership; The Elevation Group manages NASCAR program.

Sources Jelly Belly Candy Co., Tel: 707/428-2800 Just Born, Inc., Tel: 610/867-7568 NHL Enterprises, Tel: 212/789-2000

JULY 30, 2012 WWW.IEGSR.COM

STRATEGY PILOT FLYING J EXPANDS TRIATHLON INITIATIVE

Rightsholders need to adapt to sponsors’ changing priorities to ensure sponsorship success.

Like a long-distance trucker who encounters an unexpected detour, Pilot Flying J has taken a few unexpected twists and turns around its year-old sponsorship of the Revolution3 Triathlon Series.

What began as a program designed to encourage health and wellness among employees has morphed into a multifaceted initiative with the additional goals of promoting the truck stop operator’s new loyalty card and encouraging healthy lifestyles among professional truck drivers.

Pilot this year is sponsoring Rev3’s eight U.S. stops, up from three in 2011. The company is presenting five of the races.

Pilot Flying J, which operates more than 550 Pilot Travel Centers and Flying J Travel Plazas across the U.S. and Canada, initially partnered with Rev3 to promote health and wellness among its roughly 23,000 employees.

The impetus for the sponsorship: Pilot’s self-insured medical plan.

“The health plan encourages health and wellness to the point that it is in the individual’s financial interest to stay out of the hospital,” said Dave Parmly, Pilot Flying J’s employee services manager, who spearhead the sponsorship.

Pilot partnered with Rev3 events located in markets where it has a sizeable presence. Those include Knoxville, Tenn.—the location of Pilot’s corporate headquarters—and Sandusky, Ohio and Anderson, S.C., both of which are markets where it operates travel plazas.

While Pilot initially partnered with Rev3 to promote health and wellness, it expanded the program this year to generate visibility for its new MyRewards loyalty card. The program offers discounts on in-store and restaurant purchases.

“We wanted to leverage the traffic of Rev3 participants as they flow in and out of race markets,” said Parmly, adding that triathlon participants typically have high household income and are loyal to companies that support triatholons.

Pilot activates Rev3 events with on-site brand ambassadors who talk up the MyRewards program and solicit new cardholders.

While Pilot has promoted MyRewards at four events thus far this year, usage of the card among event participants has been below expectations.

“We have been disappointed translating behavior into card usage,” said Parmly, who acknowledges the product is designed more for professional truck drivers who purchase gasoline in 300 gallon increments than everyday car drivers.

“Unless someone is motivated to get their sixth cup of coffee for free, people aren’t bothering with the card.”

Parmly is working with Rev3 to beef up on-site activation. That includes a letter from Pilot CEO Jimmy Haslam explaining the program and its benefits and a sweepstakes that dangles a $100 gasoline card.

“We’re working on strategies to drive more activity through the latter half of the season.”

Turning Truckers Into Triathletes In addition to touting the MyRewards card, Pilot this year is using the triathlon series to accomplish another task: promoting physical activity and healthy nutrition among professional truck drivers.

The company added the goal following new federal guidelines that tighten physical fitness requirements for long- distance truckers, said Parmly.

“We want to make truck drivers aware they have healthier choices.”

Pilot is promoting the physical fitness message through a partnership with Truckers to Triathletes, a program developed by Dr. George Harris, a workplace safety and health and wellness expert. The program coaches professional truck drivers to complete a full sprint triathlon.

Pilot kicked off the partnership earlier this month when T2T athletes participated in the July 8 Rev3 event in Portland, Ore. The winning athletes are now training for the Oct. 14 Rev3 race in Anderson, S.C.

Sponsorship sales agency Precision Sports Entertainment is working with Pilot Flying J on a public relations initiative to promote the T2T program and Pilot’s commitment to health. The agency last year sold Pilot the Rev3 sponsorship and brokered the partnership with Truckers to Triathletes.

In addition to the Rev3 series, Pilot Flying J titles the Richard Petty Motorsports No. 43 NASCAR Nationwide Series team driven by Michael Annett.

The company uses the tie to build relations with vendors. For example, the team partnered with Mars Chocolate North America (“Candy Makers Unwrap New Sponsorships” 07.30.12) and the company’s new M&M’s Snack Mix at last weekend’s Indy 250 at the Indianapolis Motor Speedway.

The M&M’s line extension co-titled the car at the 250-mile race.

Source Pilot Flying J, Tel; 865/588-7488

JULY 30, 2012 WWW.IEGSR.COM

SEEKING DEALS SNAP INFUSION PARTNERS WITH USSA WITH MORE DEALS TO COME

Upstart sports nutrition line uses sponsorship to sample product to active health-conscious adults.

Sponsorship is playing a major role in the launch of Snap Infusion, LLC’ s Supercandy sports nutrition line.

Fresh off announcing a new four-year partnership with the U.S. Ski & Snowboard Assn., the company in August will kick off a tie to six Rock ‘n’ Roll Marathon Series events.

And the company is considering additional deals.

“Will we sponsor other events? Absolutely. We’re just getting going,” said Eric Stoll, president and founder of Snap Infusion.

Snap Infusion positions Supercandy as a healthy alternative to traditional candy (“Candy Makers Unwrap New Sponsorships” 07.30.12) products. The line—which includes gum, gummies and beans—contains B vitamins, antioxidants and electrolytes.

“The idea behind Supercandy is performance and flavor. That’s our point of difference.”

The privately-held company aligned with the USSA and the Rock ‘n’ Roll Marathon Series to sample Supercandy to active adults. The company will distribute the product at the Lake Placid Freestyle Cup, Sprint U.S. Grand Prix and other competitions.

“Sampling is our biggest thing. Once they try it, they buy in.”

Snap Infusion is also activating USSA with the Quick and Delicious sweeps that dangles a trip to the Jan. 10-13 Sprint U.S. Grand Prix competition at Cooper Mountain, Colo. Consumers enter the contest through Supercandy’s Facebook page.

The company later this year will roll out another sweeps offering trips to three other USSA events, said Stoll.

USSA has not previously signed a deal in the candy category due to an existing partnership with General Mills, Inc.’s Nature Valley granola bar. The product line has exclusivity in the snack bar category.

“We haven’t done another candy bar deal because of Nature Valley. For us to jump in with Snap Fusion is great for everyone,” said Michael Jaquet, USSA CMO.

Snap Infusion will kick off the Rock ‘n’ Roll Marathon Series on Aug. 19 in Providence, R.I. The company also will sponsor races in Las Vegas, Miami, New York City, Philadelphia and San Antonio, Texas.

The mash-up of running and music supports Supercandy’s positioning of performance and flavor, said Stoll.

Snap Infusion plans to sign endorsement deals with pro skiers and snowboarders as well as athletes in stick and ball sports. The company recently received a call from MLB Boston Red Sox shortstop Mike Aviles expressing interest in Supercandy, said Stoll, who plans to send a case to the team’s locker room.

Snap Infusion sells through natural food stores, health clubs and sporting goods retailers including GNC Holdings, Inc. and Henry Modell & Co. The company this week plans to announce a new partnership with Whole Foods Markets, Inc.

Sources Snap Infusion, LLC, Tel: 978/409-1591 U. S. Ski & Snowboard Assn., Tel: 435/649-9090

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