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Volume 24 No. 156

Sponsorships Advertising Marketing

     Jack Brock, U.S. Soft Drink President for Cadbury Schweppes,
said he has told the FTC it should reject Coca-Cola's pending
acquistion for Barq's Inc., the New Orleans-based root beer
company.  Brock: "We don't have a problem with (Coca-Cola)
devloping a brand.  But Coke already has such a dominant position
in the market."  Cadbury North America owns the A&W, Hires, and
IBC root beer brands, and Brock claimed they would lose over 20
million cases a year produced by Coca-Cola bottlers (Chris Roush,
ATLANTA CONSTITUTION, 5/25)....Coca-Cola Co. calls its "Red Hot
Summer Promotion" beginning June 1 the largest promotion in the
company's history.  The "under-the-cap promotion" will run for 13
weeks and offer $55M in available prizes and $1.5B in discounts.
Prizes include Ford Explorer Sports trucks, and more than 100
million discounts on Foot Locker merchandise (AD AGE ONLINE,
5/25).

     Bill Elliott has painted his Ford Thunderbird black to
resemble the Batmobile in order to coincide with an advertising
campaign by McDonald's.  The fast food chain, Elliott's primary
sponsor, kicks off its "Batman Forever" promotion on June 1.  The
color switch will be effective from Sunday's Coca-Cola 600 in
Charlotte through the rest of the '95 season (AP/ATLANTA
CONSTITUTION, 5/24).

     International Ice Hockey Federation President Rene Fasel's
visit to Portland, OR, on Tuesday, was reportedly to meet with
with Nike officials, according to the GLOBE & MAIL's William
Houston.  The IIHF's deal with Reebok has expired (Toronto GLOBE
& MAIL, 5/25)....In the current issue of SI, "Scorecard" examines
Reebok's deal with 14-year-old tennis star Venus Williams,
comparing it to a similar contract with then-phenom Jennifer
Capriati.  Reebok is credited with paying Williams despite the
fact she will play in only three tournaments, thereby not
"overextending" her to fulfill schedule requirements.  But, SI
adds, "she has done nothing to merit such riches except provide
one tantalzing glimpse of raw talent" (SI, 5/29 issue)....Walt
Disney announced an "unprecedented move by a major studio" as
they plan to make a motion picture that will be distributed
directly to video stores and bypass theaters.  The movie will be
"Honey, I Shrunk the Parents" and star Rick Moranis (WALL STREET
JOURNAL, 5/25).... Timberland will reportedly switch ad agencies
from Mullen Advertising to BBDO, New York (BOSTON HERALD,
5/25)....CBS' Herb Weisbaum looked at the electronic game market,
including new machines by Sega, Nintendo, and Sony.  Weisbaum
said not to expect the $400 price of the new Sega Saturn system
"to come down anytime soon" ("CBS This Morning," 5/25).

     MasterCard International confirmed yesterday they will be
title sponsor of the Colonial Invitiational PGA Tour thorugh the
'98 event.  As title sponsor of next year's event, MasterCard
"will pay about half of the prize money ($1.4 million) and
bankroll half of the 32 30-second spots run on the CBS
broadcast."  The package is estimated to be worth up to $3M,
although details were not released.  In return, MasterCard will
get its name in all mentions of the tournament, a skybox
hospitality room next to the 18th green, and "an unspecified
number of spots in the pro-am tournament."  PGA Tour Commissioner
Tim Finchem said the search took almost two years.  Finchem: "Ten
years ago, a corporation's decision to sponsor a tournament would
be made in about a week.  Today, the process is much more
laborious.  Corporations want to examine every detail before they
sign up" (Dan Piller, FT. WORTH STAR-TELEGRAM, 5/25).
     THE ROOT OF ALL EVIL?  With the signing of MasterCard, the
Colonial becomes "another traditional title ... obscured for the
stake of the corporate dollar," according to Steve Hershey in
this morning's USA TODAY.  The PGA Tour "is gaining corporate
dollars but losing its history."  PGA Tour Exec VP/Tournament
Affairs Steve Rankin says that although the Tour has lost four
sponsors in the last two years (Northern Telcom, Nestle, H-E-B,
and Hardee's), they are "about where we normally are."  Rankin:
"There always is going to be some volatility with a couple of
situations."  But on the "brighter side," both the Motorola
Western Open and The Memorial by Dean Witter have increased their
purse to make their events more attractive.  But now that $1.2-
$1.5M purses "are commonplace, sponsor investments are leveling
off -- and getting harder to find."  Hershey notes that the New
England Classic hasn't had a sponsor since '90, and the Bay Hill
Club in Orlando is yet to replace Nestle, even with Arnold Palmer
as a host (USA TODAY, 5/25).

     Callaway Golf, Cobra Golf, and Taylor Made have "clobbered"
such established competitors as Wilson, Spalding, and MacGregor
in the golf club market, according to FORTUNE.  Callaway, Cobra
and Taylor Made "own" the market for drivers that cost more than
$200.  Bill Saporito notes that this "high-end" market is a $3B
business at wholesale.  Callaway Golf's sales rose 77% last year
to $449M with profits at $78M, while Cobra saw sales rise 121% to
$124M with a $23M profit.  President of New York's World of Golf
David Braham: "Callaway is hot, Taylor Made is hot, Cobra is hot,
and virtually everything else isn't."  This success has drawn a
"host of competitors" into the market.  Wilson, PowerBilt, and
Lynx offered new product lines at Professional Golfers
Association trade show in January.  In addition, startups such as
GolfGear Int'l and Goldwin Golf are taking a high-tech approach
to club making that Callaway Golf used in the design and
production of its "innovative" Big Bertha driver (Bill Saporito,
FORTUNE, 6/12 issue).

     Malley's Chocolates has introduced the Albert Belle Bar, a
chocolate crunch bar that will cost $1.  Belle said he was
honored to be chosen by Malley's.  Belle: "With the strength of
our team this year, Malley's could have chosen just about
anybody's name to go on their candy bar."  But Belle's hitting
made the decision easy for Malley's.  Malley's Chocolates
President Bill Malley: "Albert crunches the ball so often we
decided to make it a chocolate crunch bar" (Cleveland PLAIN-
DEALER, 5/24).

     Mike Powell, who holds the world record in the long jump,
has re-signed with Foot Locker and inked a new deal with Fila,
USA -- both run for three years through '97.  Jerry Canning,
VP/Marketing Services for Foot Locker, called Powell "a major
asset as we move into the '96 Olympic year and thereafter."  The
Fila deal represents the first for the company with a field event
athlete (Foot Locker).