Budweiser Gains Category Exclusivity In Kahne Sponsorship

Budweiser To Sponsor Kahne's No. 9 Beginning Next Season

Gillett Evernham Motorsports (GEM) formally announced yesterday that Budweiser will replace Dodge Dealers as the primary sponsor for Kasey Kahne's No. 9 Dodge beginning next season, with Allstate retaining a prominent spot on the car as an associate sponsor.  A-B VP/Global Media & Sports Marketing Tony Ponturo said the company is spending more on this sponsorship than it did for Dale Earnhardt Jr.'s No. 8 DEI Chevrolet, but did not reveal specifics. Allstate will move into a primary position on the No. 9 car for two races next season: the Allstate 400 at the Brickyard in Indianapolis plus another to be determined. Bud and Allstate also will work together on a responsible driving program next year. Bud's deal gives the brand beverage exclusivity with Kahne, meaning he will no longer endorse Vitaminwater.  Kahne's association with Wrigley's will also end after this season. McDonald's will continue using Kahne in association with the Ronald McDonald House, but is not expected to appear on the Bud car (Michael Smith, SportsBusiness Journal).  Team co-Owner Ray Evernham said Budweiser will “give us some momentum” on the track. Evernham: “It‘s obviously going to bring partners in that will provide more resources, and that’s something that George Gillett and his group are working on. ... Budweiser does such a mega job of marketing, people are going to want to be associated with them and that translates into dollars that lets our car go faster. But I think more importantly, it’s that momentum, the fact that we now carry a sponsor that’s known for winning in the sport” ("NASCAR Now," ESPN2, 9/18).  More Evernham: “Budweiser will create opportunities to get other people to invest more in this business, that will allow us to compete against the Hendricks, the Gibbses, and the Roushes” (WINSTON-SALEM JOURNAL, 9/19).

BUD DOWNSHIFTS: According to research by Joyce Julius, the Bud-Earnhardt relationship has “reaped the equivalent of $129.7[M] worth of television ad time through 22 nationally broadcast races this year,” ahead of both Jimmie Johnson’s $90.7M and teammate Jeff Gordon’s $71.9M for Lowe's and DuPont, respectively.  A-B stands to lose another $100M in exposure from dropping the Busch brand’s naming rights to NASCAR’s second series (BLOOMBERG NEWS, 9/17).  While NASCAR was initially seeking $30-40M in sponsorship and activation costs from a new title sponsor for its No. 2 series, Ponturo said NASCAR should not “put a disproportional amount of media support on it. ESPN, I know, is a good partner, (and) they pay rights fees, but you’ve got to make it affordable to people. They’ll figure that out” (SCENEDAILY.com, 9/18).  Ponturo said that he is in negotiations with NASCAR to extend A-B's status as the official beer. Ponturo: "They have an offer on their desk. It is our intent to continue, but nothing has been accepted at this point" (Smith, SBJ).

A-B Interested In Tapping Into Kahne's Female Fan Base

FRESH FACE: A-B VP/Sports & Event Marketing Tim Schoen said of Kahne, “Will he be the typical Bud guys of decades before? No. We’re going to see new marketing position that might be slightly different than you’ve seen in years past” (ESPN.com, 9/18). Schoen: “His female base is very interesting for Budweiser. We have many female customers as well. So we’ll want to build on that and on the male side, which is our core audience, I think you’ll see something different" (CHARLOTTE OBSERVER, 9/19). The new Bud car “looks almost exactly the same [as Earnhardt Jr.'s] except it’s a red Dodge and not a Chevrolet and the number is a 9 and not an 8” (ESPN.com, 9/18). ESPN.com’s Terry Blount noted there are already Budweiser bottles with Kahne’s No. 9 on the label.  Bud “played [yesterday's announcement] up big by having Kahne make a grand entrance” riding in the wagon pulled by the Budweiser Clydesdales (ESPN.com, 9/18).