Nfl Street
Molson CEO sees better use of the budget of the NFL
Peter Swinburn, CEO of Molson Coors, told Reuters on Tuesday became the sponsorship less after the change attractive financially. "Its value, not price," Swinburn said in an interview. "We came to a point where we thought we could extract actually much better value for our money for a certain level and once asked to go above this level, it has become more attractive to us. "
risk that the U.S. venture together with SABMiller Plc, known under the name MillerCoors said Tuesday it would not renew the sponsorship of Coors Light, once the existing agreement expires after the 2010-11 season. It has more than a dozen dealing with individual teams, as the Dallas Cowboys and said he is still waiting to buy ads in the NFL.
A Instead, Anheuser-Busch InBev, said his Bud Light, the best-selling beer in the United States, would take over.
No wonder MillerCoors bent on sponsorship, "said Jim Andrews, vice president of IEG, a unit of advertising giant WPP Plc, which is sponsored spending.
"Sponsored by the League provides a national platform, but the value of which is questionable, since consumers are not NFL fans are fans Bears, Steelers, Cowboys, etc., "said Andrews.
He estimated that MillerCoors is currently facing 100 million-about U.S. $ 30 million per year for the sponsorship another, more than 70 million guaranteed the NFL media buys.
Swinburn said the company has a "plan B" for the money spent in the NFL, but declined to give details, except to say that even in sport. "We are confident that we'll extract more value from the company we've done If we paid more than what the NFL wanted to, "he said.
The terms of the contract of Bud Light were not disclosed, but an article in the street and Smith Anheuser says SportsBusiness Journal paid double what Coors paid, according to sources. According to figures Andrews, who would come to $ 1.2 million in six years contract.
Price of beer in China
Molson Coors, the largest brewery in the world and fifth largest of Molson Canadian, Blue Moon and Carling, also said Tuesday it has agreed to pay 40 million for a 51 percent stake in a joint venture with China's Regional beer.
Even if companies Molson is concentrated mainly in the mature markets of Canada, Britain and the United States, Coors light is currently sold in 43 Chinese cities.
The company supply and quality of Coors Light beer, and improve profit margins by eliminating the costs of preparing the contract, "Swinburn said. Control direct the company will also allow greater freedom to innovate.
Swinburne does not lose focus on growing sales of Coors Light in China, but said the company, it is easier to launch other brands combined.
"We see no reason why in the next 18 months to three years can not be other products in the system we already have and it is clear that help them become more sustainable, "said Swinburn.
Striking a balance in emerging markets is important that the growth is hard to find in existing markets for the company. The volume of sales in April fell to a low single-digit rates in Canada and the United States, Swinburn said, noting that the rate of the United States represents "an improvement" The decrease in the recently concluded first quarter Instead, while sales to wholesalers fell 3.6 percent and retail sales fell four percent.
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