Coffee War Percolates New Sponsorship Spending
Posted: 7/24/2009 3:09:34 PM by
William Chipps | with 1 comments
Today’s coffee lover faces more choices than ever on where to buy their favorite brew, and that has prompted new sponsorship spending on behalf of coffee retailers.
That activity has been driven in large part by McDonald’s Corp., which took on Starbucks Corp., Dunkin’ Brands, Inc. and other coffee retailers earlier this year with the launch of the McCafe coffee line.
Competition also has been fueled by convenience stores, many of which are adding premium coffee blends to their product offering. Coffee can be a profitable item: New Jersey-based Quick Chek reported a 10 percent increase in coffee sales in its fiscal first quarter.
The one-two combination of more players and new products has spurred new sponsorship activity as companies look to sample their drinks, maintain relevancy and drive store traffic.
Case in point: McDonald’s earlier this year inked a sponsorship of New York City’s Mercedes-Benz Fashion Week as a platform to unveil McCafe and sample its new coffee line to trend-setting urbanites. McDonald’s also has leveraged existing ties with sports, motorsports and other types of properties to promote the beverage line.
At the same time, Starbucks and Dunkin’ Donuts also have beefed up their sponsorship portfolios. Starbucks, an active sponsor of community festivals and events, last month entered new ground by signing title of MSNBC’s Morning Joe talk show.
Back east, Dunkin’ Donuts continues to use sponsorship as a go-to marketing medium in both new and established markets. The company, which sponsors everything from the ING New York City Marathon to the NBA Boston Celtics and NFL Philadelphia Eagles, last year hired Fenway Sports Group as its sports marketing agency of record.
A heads up to properties in Minnesota: Dunkin’ plans to open more than 100 stores in Minnesota and Western Wisconsin this year, a move that could prompt additional sponsorships as the company looks to build awareness in the new market (read the story here).
Other players include Peet’s Coffee & Tea, which sponsored the Amgen Tour of California bicycle race; and coffee marketer Paramount Coffee, which runs a cause-related marketing program around its partnership with Susan G. Komen for the Cure.
Increased competition almost always leads to new sponsorship spending. This is a category that offers lots of opportunities.
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Filed under: how to get sponsorship, marathon, spending, cause marketing