Ieg Sponsorship Report Ieg Sponsorship Report the Latest on Sports, Arts, Cause and Entertainment Marketing
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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. © 2012 IEG, LLC. ALL RIGHTS RESERVED. 1 IEG SPONSORSHIP REPORT 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. © 2012 IEG, LLC. ALL RIGHTS RESERVED. 2 IEG SPONSORSHIP REPORT 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. © 2012 IEG, LLC. ALL RIGHTS RESERVED. 3 IEG SPONSORSHIP REPORT 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.