Group Created with Sketch.
Volume 24 No. 156

Sponsorships Advertising Marketing

     The Anheuser-Busch Companies "indefinitely postponed
negotiations to buy a stake in Czech brewer Budweiser-Budvar and
opened the door to renewed legal action in their decades-old
trademark dispute."  Anheuser-Busch says its "top priority now is
to settle the numerous battles over the Budweiser trademark that
has locked it out of key markets."  The trademark dispute has
locked Anheuser-Busch's "biggest product out of many European and
other markets because of a patchwork of agreements and court
rulings."  In many European countries, the U.S. brew is sold only
as "Bud," and in Germany and Austria, Anheuser-Busch is locked
out (BLOOMBERG BUSINESS NEWS, 10/12).

     Today's WALL STREET JOURNAL reports that "as consumer demand
for athletic shoes has cooled, growth has slowed at Foot Locker,"
and it has caused problems for their already struggling parent
company, Woolworth.  Some analysts believe Woolworth let its Foot
Locker stores become too dated, and "missed the chance to cash in
on the popularity of licensed apparel and merchandise."  Bill
DeVries, CEO of Kinney Shoe Corp, which includes Foot Locker,
concedes that Foot Locker has "saturated America's shopping
malls" but that they are "keeping their eyes open."  One vendor
said  "brand" stores like NikeTown have made Foot Locker's
presentation look "older" (Laura Bird, WALL STREET JOURNAL,
10/12).

     TBC Direct in Baltimore "took top honors" at the 65th annual
International Echo Awards competition sponsored by Direct
Marketing Association for its work for the NFL Baltimore
Expansion Committee (N.Y. TIMES, 10/12)....ESPN's Peter Gammons:
"The Indians marketing department has calculated that if the
strike isn't settled, which it probably won't be, that they'll
lose 10-12% of their 1995 revenues per month -- every month --
beginning November 1st" ("SportsCenter," ESPN, 10/11).

     International Sports Marketing Consultants Limited (ISMC
Ltd.), headquartered in Bedford, NY, has been organized under the
leadership of Jack McMahon, who guided IBM's worldwide sports
program for 13 years.  Joining him are four former IBMers with
experience in media relations and sports marketing:  Walter Gray,
Michael Lazare, Arnold Pinsly and Fred Steinberg.  ICMC sees
itself providing professional support to companies investing in
sports sponsorships to help maximize their investment in sports.
McMahon: "Companies will also find ISMC expertise useful in
giving them a fresh look at their programs, through the eyes of
experienced professionals, to make sure they are leveraging all
available sources."  At IBM, McMahon was responsible for creating
and managing IBM's top sports sponsorships, including agreements
with the IOC, MLB, ATP, America's Cup, NHL, The Masters and
others (THE DAILY).

     PepsiCo Inc, "which sent shivers through the investment
community in June when it disclosed that its second-quarter
earnings would be flat, attracted enthusiastic applause on Wall
Street yesterday after it reported third-quarter results that
were better than expected."  The company said net income rose
18%, to $541.5M.  Revenue for the quarter was up 12%, to $7.06B
from $6.32B.  "The one blot on the Pepsi report was performance
at its Pizza Hut chain."  Pizza Hut's operating profit dropped
25% during the quarter, to $78.5M (Kenneth Gilpin, N.Y. TIMES,
10/12)....Virgin Cola, Richard Branson's latest enterprise, "was
greeted skeptically yesterday by other soft-drink makers.  They
look forward to the competition but wonder how Virgin and Cott,
its Canadian partner, will crack distribution and sales
problems."  In London, Diane Summers asks, "What has a cola drink
to do with an airline, radio station, music store or computer
game, and what have any of these activities to do with each
other?"  Virgin's corporate affairs dir Will Whitehorn noted that
the Virgin name "does not mean a specific product to the public,
but is associated with fun, friendliness, doing things
differently, quality and price competitiveness."  These
attributes, he noted, "mean the brand can be applied to a diverse
range of products" (FINANCIAL TIMES, 10/12).  Virgin Cola should
hit stores in Britain within a few months, then expand into the
U.S., the rest of Europe and Japan (ATLANTA CONSTITUTION, 10/12).
     UN-COLA:  In this morning's WALL STREET JOURNAL, William
Power suggests that Snapple Beverage, which closed at 12 1/18
yesterday, could be a good stock purchase again (WALL STREET
JOURNAL, 10/12).

     Starting tomorrow, Ontario drivers will be able to order
licence plates emblazoned with the logo of a professional Ontario
sports team -- the Maple Leafs, Senators, Blue Jays, Raptors,
Argonauts, Tiger-Cats or Rough Riders.  Brand new plates bearing
a full-color logo cost C$52.10, while new personalized plates
with a sports symbol cost C$185.85.  The teams will earn either
C$2.25 or C$4.50 per plate.  While logos have been on licence
plates in several U.S. states, the Ontario initiative is the
first to be tried in Canada (Leslie Rapp, TORONTO STAR, 10/12).