In what THE SPORTS BUSINESS DAILY considers a "MUST READ,"
this week's issue of ADVERTISING AGE provides a ranking of top
global brands in terms of current status and growth potential.
The ranking was developed by Young & Rubicam and based on "in-
depth interviews with 25,300 consumers in 16 countries." THE
TOP 10 IN EACH CATEGORY:
"STATURE" -- Coca-Cola, Kodak, Sony, Mercedes-Benz, Pepsi-
Cola, Nestle, Gillette, Colgate, Adidas, Volkswagen.
"VITALITY" -- Coca-Cola, Nike, Adidas, Sony, Ferrari,
Reebok, Disney, Porsche, Pepsi-Cola, Mercedes Benz.
"While it's not surprising that Coca-Cola emerges as the
most dynamic brand in the world -- in both rankings -- other
names indicate that the traditional package goods megabrands are
being surpassed in growth potential by leisure industry
standouts, such as entertainment vehicles like MTV and Disney and
sports shoes marketers" (Laurel Wentz, AD AGE, 9/19 issue).
According to this morning's ATLANTA CONSTITUTION, projected
3rd-quarter international sales for Coca-Cola Co. will jump 14%
from last year, while domestic sales will rise 5 to 6% --
enabling the company "to post its best quarterly volume gain in
five years." Coca-Cola Chair and CEO Roberto Goizueta "credited
aggressive marketing -- including the company's new contour
bottle, summer and World Cup promotions, and effective ad
campaigns -- and good weather in Germany and Japan. ... But the
huge success of the plastic version of the classic curvy Coke
bottle is the eye-opener." Goizueta: "I don't remember seeing
this kind of connection (with the consumer) since 1985 -- when we
changed the formula and then brought back the original formula as
Coca-Cola Classic." Goizueta also said the company's additional
revenue is being directed "into marketing, which had been pared
in some markets to meet earnings goals" (Cynthia Mitchell,
ATLANTA CONSTITUTION, 9/20).
THIRST QUENCHERS: The WALL STREET JOURNAL reports that
Coke's domestic growth has been helped, not just by the new
plastic bottle, but also by the company's "new juice and sport
drinks." The JOURNAL also says dramatic volume gains of up to
40% are expected "for the quarter in the region that covers
Eastern Europe, the Middle East, and India" (Laurie Grossman,
WALL STREET JOURNAL, 9/20).
STRIKE IMPACT: In today's USA TODAY, Lehman Bros.' Caroline
Levy "notes Coca-Cola controls much of the baseball stadium
fountain business," but says earnings have not been affected by
the MLB strike. Levy: "Should the strike continue (into next
season), this could become an issue" (Ellen Neuborne, USA TODAY,
It was announced this morning that Kinney Shoe Corporation's
Foot Locker has renewed its agreement with Dorna USA to advertise
on Dorna's AdTime signage system in 11 NBA arenas during the '94-
95 season. As part of the agreement, Champs Sports, also a
division of Kinney, will advertise on AdTime systems in four NBA
Arenas -- Charlotte Coliseum, United Arena, Orlando Arena, and
the Alamodome. Jerry Cifarelli, Dorna USA Senior VP: "We are
delighted with Foot Locker's continued commitment and we welcome
Champs Sports to our AdTime NBA lineup. The Kinney Shoe athletic
divisions are certainly among the most supportive and
enthusiastic sponsors of our signage system." AdTime will be
used this season by the Knicks, Bulls, Hawks, Celtics, Hornets,
Pistons, Pacers, Clippers, Timberwolves, Nets, Magic, 76ers,
Spurs, and Bullets (THE DAILY).
Caesars World Inc. and Planet Hollywood formed a joint
venture to develop hotel-casino projects, "reflecting Caesars'
interest in tapping the mass market and Planet Hollywood's push
to expand beyond entertainment-theme restaurants into new
businesses" (WALL STREET JOURNAL, 9/20)....SWEET SPOT, a
publication for serious collectors of sports memorabilia, reports
that stadium seats are a popular item, especially ones from the
original Yankee Stadium or Brooklyn's Ebbets Field (CHRISTIAN
SCIENCE MONITOR, 9/20). ....The debut of "The Ultimate Tennis
Experience" will occur on November 14 in Frankfurt. Pat Cash and
John McEnroe will be the featured players and the match will
"combine the theatrics of a rock concert with a tennis match."
Cash: "This should help spark a whole new interest in the game"
(THE DAILY).....Digital Pictures will introduce the first live-
action basketball game on CD-ROM in November, featuring Scottie
Pippen (AD AGE, 9/19 issue).....The Ford Grand Prix of Dallas is
expected to produce long-term sales results for area Ford dealers
who paid around $400,000 to be the event's prime sponsor (DALLAS
MORNING NEWS, 9/17)...."Baseball" director KEN BURNS has agreed
to pitch merchandise on QVC. All profits will benefit the
Florentine Films Foundation, an organization established to aid
baseball charities and public television documentary filmmakers
(AD AGE, 9/19).... CNN's Irv Chapman looked at U.S. businesses in
Haiti, including "some of the biggest names in sportswear and
sporting goods," many of which would consider continuing business
there if the embargo is lifted ("Moneyline," 9/19).
Demand for Nike products "is overwhelming inventory,
reducing net income," reports Richard Reed in this morning's
PORTLAND OREGONIAN. "It's a headache that just won't quit.
Worldwide orders for Nike athletic footwear and apparel scheduled
for delivery between now and January total $1.66B -- up 28
percent over the same period last year, when U.S. orders were
depressed." But, U.S. inventory is down 46% from '93, leaving
just 5.5M pairs of shoes, while global inventories are down 26%.
Nike's 1st-quarter net income fell from $114.1M in '93 to $106M
this year, but global revenues increased 6 percent to a record
high of $1.17B (Richard Reed, PORTLAND OREGONIAN, 9/19).
REAX FROM THE TOP: Nike Chair Philip Knight: "Last year at
this time, media and investment sources were sounding the death
knell of branded athletic footwear. Our U.S. results should give
investors great confidence in the resiliency of the Nike brand
and in our ability to lead the market with innovative products."
Nike President Thomas Clarke: "The magnitude of the orders
really reflects the continued strength of the Nike brand, but I
also think it reflects of the athletic footwear industry around
the world" (PORTLAND OREGONIAN, 9/19).
DOMESTIC AND INTERNATIONAL STATS: U.S. revenues during the
1st-quarter of this year grew 55% in outdoor shoes; 31% in
walking; 27% in tennis; 17% in cross-training; and 11% in
running. Basketball shoes sales declined 14%, "but Nike
executives said that orders were up again in that category."
International revenues jumped 13% overall, but dropped 34% in
France and 28% in Germany. Knight: "We are making progress in
... those countries, but tangible benefits may not be realized
until fiscal 1996." Sales in jumped in Spain 163%; in Italy and
Mexico, 37%; and in Canada, 12% (PORTLAND OREGONIAN, 9/19).
Royal Crown Co. said yesterday that it has expanded its
number of Mexican bottling plants from seven to 11 "in an effort
to build the [RC] soft-drink brand" (AP, 9/19) ....Coors Brewing
has introducted Keystone Ice this week in select markets around
the U.S. (WALL STREET JOURNAL, 9/20). Coors also announced they
have signed Julio Cesar Chavez to support their "ongoing effort
to fight illiteracy" (THE DAILY)....Japanese brewers such as
Suntory, Kirin, and Sapporo have started producing ice beer
(JAPAN TIMES WEEKLY, 9/19)....With total sales of $1.5B this
year, Ocean Spray "dominates the juice aisles of the nation's
supermarkets," and reports that "business has been strong" since
the start of its $35M "Crave the Wave" marketing campaign (BOSTON
HERALD, 9/19)....Heineken signed an agreement to build its third
brewery in China (N.Y. TIMES, 9/20)....The Australian Football
League signed $30M in sponsorship deals during the next five
years with Carlton & United Breweries and Coca-Cola Amatil (AD