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Marketing and Sponsorship

Grocer Hy-Vee Cites Higher Costs For Ending 15-Year Sponsorship With Royals

Iowa-based grocery store chain Hy-Vee is ending its 15-year sponsorship with the Royals "after weeks of negotiations failed to find a deal it could afford," according to Mark Davis of the K.C. STAR. Hy-Vee, which had been the Royals' official grocer since '01, "made clear that price was the obstacle." The company in a statement said, "We couldn't justify spending the amount that was being asked without it impacting our customers in the long run." Davis noted Hy-Vee "produced commercials, hosted events for baseball fans and advertised with in-stadium and outdoor signs and in-store promotions." It also served as a site for Royals ticket sales (KANSASCITY.com, 11/30). Hy-Vee did not disclose what the Royals were asking for as part of a new deal, but company Senior Communications Manager Tina Potthoff said that it was "significantly more than the 2013 contract." In Des Moines, Joel Aschbrenner notes Hy-Vee's signs at Kauffman Stadium "were seen on millions of TV sets nationwide during recent playoff runs," including the Royals' World Series win in '15. The upper deck at the ballpark "was named the Hy-Vee level," and the grocer sponsored "weekly fireworks displays." The Hy-Vee Cool Zone had been added to the Kauffman Stadium outfield as an "area with live entertainment and cooling stations." Hy-Vee will "maintain a presence" in the K.C. sports market, as it "recently renewed its contract" with the Chiefs through '23 and sponsors Kansas Speedway (DES MOINES REGISTER, 12/1).

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