Inside the Deal

THE DEAL:

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PowerBar signs as the nutritional energy bar supplier for the U.S. Olympic team and the 2002 Winter Games.

ESTIMATED VALUE/LENGTH:

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$5 million to $10 million in cash and product. Through 2002 for rights to the Salt Lake City Olympics; through 2004 for rights to the U.S. Olympic Committee.

DEAL MAKERS:

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Gabe Griego, director of advertising, PowerBar; Wendy Smith, sports marketing manager, PowerBar; Mark Lewis, president and CEO, Olympic Properties of the U.S.

KEY ELEMENTS:

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Status as official supplier to the 2002 and 2004 U.S. Olympic teams.

Status as official supplier to the 2002 Olympics and Paralympics Winter Games in Salt Lake City.

Right to use the 2002 Winter Games, the USOC and the U.S. Olympic team official supplier logos on packaging.

PowerBar to supply unlimited quantity of product at the 2002 Winter Games villages for athletes and volunteers and at the U.S. Olympic training centers.

BACKGROUND:

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PowerBar Inc., which was started by a former Olympic athlete, was bought earlier this year by Nestlé USA Inc. The company is the category leader with about a 40 percent share of the energy bar market.

This is the first OPUS supplier deal for this category. The PowerBar deal is for the nutritional energy bar only and doesn't convey any rights to the company's Perform sports drink. Coca-Cola Co., a worldwide Olympics sponsor, has rights to all nonalcoholic beverages. OPUS is the joint marketing effort between the Salt Lake Organizing Committee and the USOC.

OPUS sponsors include General Motors, AT&T, Texaco, Bank of America, Anheuser-Busch, US West, Lucent Technologies, The Home Depot, Delta Air Lines, Seiko, Blue Cross/Blue Shield, York International, Marker Ltd., Nu Skin/Pharmanex, Gateway Inc., Monster.com, Sensormatic and Jet Set Sports.

OPUS suppliers include Drake Beam Morin, O.C. Tanner Co., Questar Corp., KSL Television and Radio, Herman Miller and Henriksen/Butler, Compass Group, Harris Interactive, Modern Display Services Inc., Marriott International, Tickets.com, Certified Angus Beef Program, Schenker Inc., Sears, Roebuck & Co., Utah Power, AchieveGlobal, Kellogg Co., Cardinal Health and Allegiance and PowerBar.

ANALYSIS:

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The sponsorship moves PowerBar into a new marketing phase. PowerBar started as a grassroots product for competitive athletes and weekend warriors. Its current "Don't Bonk" campaign attempts to gain use among nonathletes. Now, with an Olympics deal, PowerBar is selling image by leveraging an association with a high-profile event and well-known athletes like Michael Johnson, Brandi Chastain and Jason Kidd. The Olympics tend to attract viewers who don't watch other sports programming, so if Nestlé spends behind the deal, PowerBar should boost awareness and sales.

OTHER NEW DEALS:

  Evian was named title sponsor of the former Ladies European Tour.

Instinet Corp. signed on as title sponsor of the Senior PGA Tour’s event at TPC at Jasna Polana in Princeton, N.J.

The World Indoor Soccer League signed Fila as an official sponsor. As part of the deal, Fila will also serve as a presenting sponsor of the WISL’s International Series.

InGlasCo signed a two-year deal as the official game puck of the East Coast Hockey League. The company will also co-sponsor the ECHL Player of the Week award by donating 100 pucks to the chosen player’s local youth hockey program.

Keystone Financial Inc. sponsored the Exelon Invitational charity golf tournament at the Wyncote Golf Club in Philadelphia.

Source: Street & Smith’s SportsBusiness Journal research and Golfweek magazine