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Marketing and Sponsorship

Royals Capitalize On Shift In MLB Policy, Reach Partnership For Branded Vodka Bottles

The Royals have signed a multiyear deal with Missouri-based McCormick Distilling, allowing the company to produce limited-edition Royals-branded bottles of its 360 Vodka and becoming the latest team to take advantage of a recent shift in MLB policy. The Royals are believed to be the second club to license marks for use on spirits packaging since the league loosened its regulations. Royals VP/Marketing & Business Development Mike Bucek said of the change, “That’s exciting not just for the Royals, but I think for all clubs.” The bottles, which come in two sizes, feature the team’s blue and white color scheme with gold accents and commemorate the team’s ’14 AL championship. McCormick as part of the deal receives naming rights to Kauffman Stadium’s new 360 Bullpen Bar and additional in-stadium signage , while signature Royals-themed cocktails made with 360 Vodka will be served throughout the ballpark. MLB last August brought spirits under the same guidelines as beer and wine, as well as products in other categories, in response to a request from the Cubs. Cubs Senior Dir of Corporate Partnerships Allen Hermeling said that the team’s branded Smirnoff vodka bottles were the first of their kind, as the team worked with the league office to ensure the initiative adhered to league rules. He added that the league has since provided teams with direction on how to pursue similar branding efforts.

LEAGUES OF THEIR OWN: NHL Senior VP/Integrated Marketing Susan Cohig said that the NHL has allowed its teams to license their logos for use on spirits and malt liquor since ’11. She added that the league does have a review process for teams’ creative in the spirits category. An NBA source said that team logos cannot appear on any liquor bottle or primary vessel, but can be used on secondary or outer packaging. One recent example of this is a partnership between Diageo’s Crown Royal whiskey brand and the Hornets. As part of the deal, which was signed last month, the Hornets logo appears not on the bottles, but rather the brand’s signature felt-like purple bags in which the bottles are sold. NFL VP/Communications Brian McCarthy said in an e-mail that the league does not permit spirits brands to utilize team marks on any packaging. The league does allow teams to license their logos for use by liquor brands on point-of-sale displays, but only if accompanied by a social responsibility message.

TIMES THEY ARE A CHANGIN': N.Y.-based marketing agency Engine Shop President & Founding Partner Ed Kiernan, who worked with the PGA Tour on its first spirits partnership with Ketel One in ’04, said that while he was initially a bit surprised by MLB’s policy change, it jibes with the current trend. Kiernan: “If you look at how sports has changed and how sports is adapting to our societal change, I think you see a lot of the restrictions being loosened and a lot of these categories being opened up.” He cited gaming and daily fantasy as examples. He added that while the PGA Tour was initially reluctant to enter into a corporate partnership with a liquor brand for fear of public backlash, Ketel One branding became commonplace on Tour without any pushback. Grey Goose has since replaced Ketel One as the Tour’s official spirit. Both Kiernan and Siegel+Gale Strategy Dir Daniel Katz-Golden said that the notion that there is an acceptability distinction between beer and spirits is arcane. Katz-Golden suggested that leagues that place restrictions on team’s relationships with the spirits industry might be protecting financial interests with beer companies.

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