Coors Light Will Replace Budweiser as Nascar Sponsor
Molson Coors Brewing Co., the third-largest U.S. brewer, said Coors Light will be the official beer sponsor of Nascar auto racing, replacing Anheuser-Busch Cos.' Budweiser brand.
The agreement covers five years starting with the 2008 racing season, Molson Coors said today in a statement. The pole- position prize in Nascar's top series, now called the Bud Pole Award, will be renamed after Coors Light.
The accord gives Coors Light exclusive rights to use the National Association for Stock Car Auto Racing Inc.'s logos in advertising, packaging and promotion. Molson Coors is targeting sports to win drinkers from larger Anheuser-Busch, which focused its Nascar sponsorship largely on Dale Earnhardt Jr.'s No. 8 car before he recently switched teams.
``Coors is picking a property where they can have this unique exclusivity without creating an arms race on media spending,'' said Brian Evans, an executive with Verve Sponsorship Group, an Atlanta firm that helps companies evaluate Nascar opportunities. ``In that sense, it's smart because Coors cannot outspend Bud in the media.''
Evans estimated Molson Coors paid as much as $25 million for the Nascar sponsorship.
Andy England, marketing chief for Molson Coors, declined to comment on the value of the agreement.
The Molson Coors sponsorship doesn't include the Budweiser Shootout race or beer-pouring rights at tracks, which are negotiated separately, England said.
Budweiser Offer
Budweiser had made an offer to extend its status as official beer of Nascar, Anheuser-Busch Vice President Tony Ponturo said at a Sept. 18 press conference. The St. Louis-based brewer had been Nascar's official beer sponsor since 1999, said Nascar spokesman Andrew Giangola.
Molson Coors, based in Denver and Montreal, jumped $1.73, or 1.8 percent, to $98.43 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have risen 29 percent this year. Anheuser-Busch gained 45 cents to $50.43 and has advanced 2.5 percent this year.
``Nascar events are so hugely attended by fervent fans, who follow it track to track,'' England said in an interview. ``It skews male, guys who like to drink beer. People are not going to Nascar to drink an appletini.''
Nascar is the most-watched spectator sport in the U.S. for attendance at events, and it's the second-rated regular season sport on U.S. television broadcasts behind National Football League games.
75 Million Fans
``Coors' philosophy and goals in the sport are to market to all 75 million fans, seven days a week,'' said Giangola. ``Coors wanted to create programs and promotions to promote the whole sport overall.''
Budweiser will switch its car sponsorship to driver Kasey Kahne for next season after Earnhardt failed to win control of his late father's racing company from his stepmother.
``Budweiser losing Dale Earnhardt Jr. hurts them more than losing the Bud Pole,'' said Evans. ``He is the most popular driver in the sport, and he sells product.''
Anheuser-Busch's Busch brand will no longer be title sponsor of Nascar's second-tier series, which it had backed since 1984. The Busch Series sponsorship is in negotiations now, and may be signed before the end of the current season, said Giangola.
`More Focused'
``We're trying to be a little more focused in our message instead of having it splintered'' between a driver and the sport's governing body, Tony Ponturo, head of sports marketing for Anheuser-Busch, said in an interview.
Having both Budweiser and Busch involved as Nascar sponsors ``became a little dilutive,'' Ponturo said.
Anheuser-Busch is the largest U.S. brewer, with 48 percent market share as of the end of 2006, compared with about 11 percent for Molson Coors, according to data compiled by Beer Marketer's Insights, an industry publication.
Nascar, started in 1948, has more Fortune 500 sponsors than any other sport.
Coors also is the beer sponsor of the NFL through 2010. The Sports Business Journal said that deal is worth $500 million.
(Source: Bloomberg.com)
