Dr. T. Bettina Cornwell
Professor of Marketing, Philip H. Knight Chair, and Head, Department of Marketing, University of Oregon. Her research is at the intersection of marketing strategy and consumer experience. Author of Sponsorship in Marketing: Effective Partnerships in Sport, Arts, and Events.
Email: tbc@uoregon.edu
The Paris Olympic and Paralympic Games included a sponsorship “first.”
The Games have their first ever beer sponsor. AB InBev signed the TOP sponsorship deal with the International Olympic Committee making Corona Cero the official beer of the Games through the 2028 Olympics to be held in Los Angeles. Corona Cero is a non-alcoholic beer. Anne-Sophie Voumard, Managing Director, International Olympic Committee Television and Marketing Services stated that “Together, we strive to promote sports and moderation, contributing to a better world.” While the non-alcoholic beer category is booming, it is still a tiny percent of the beer market. What is the strategic logic for putting a no alcohol beer in front of millions of viewers?
There are at least two perspectives to consider on the logic of this first beer sponsorship for the Games.
One perspective suggests that AB InBev is responding to marketplace changes in consumer behavior for healthy, no and low, beverage offerings. Non-alcoholic beer currently fits neatly in the classic Boston Consulting Grid Growth Share Matrix as a “question mark” of low market share and high growth. The advice here would be to invest in question marks offerings if they have a chance to become a star (with high market share and high growth). Still, TOP sponsorship is a big investment for a question mark.
Taking a broad view for a moment, AB InBev is not the only beer brand investing in their no alcohol offerings. For example, Heinekin is leading with their Heinekin 0.0 beer in F1 racing and tennis for the US Open. Given that no or low alcohol beers are growing for the category, they may become stars. It could be argued that Corona is responding to marketplace changes. From this viewpoint, support can be found in another unique TOP IOC sponsorship. The first-ever joint TOP partnership between Coca-Cola and Mengnieu dairy products from China.
Coca-Cola has been broadening its portfolio of brands in recent years to become a consumer-oriented total beverage company. For example, after years of investment and collaboration in 2020 it acquired US dairy brand Fairlife. A product brought into the Coca-Cola portfolio with the Fairlife acquisition was Core Power protein shake—that brand now sponsors Olympic swimmer, Katie Ledecky. In China, Coca-Cola has partnered with Mengnieu for branding power, distribution systems and consumer markets that are mutually beneficial. Like the Fairlife investment, the Mengnieu partnership is in keeping with Coca-Cola’s evolution to a total beverage company.
Again, we must ask, is the strategic value to these two brands in responding to marketplace change? The commonality underlying these two “firsts” can be viewed as changing consumer preferences. Brands like Coca-Cola and Corona are responding to consumer trends for products like protein rich beverages and non-alcoholic beers. Are we witnessing brand evolution?
Now, for that other perspective.
Cynics might say that the AB InBev investment value is in the potential to sell more than just Corona Cero from the AB InBev stable via an event with unique international coverage. Given their sponsorship of TEAM ULTRA athletes from the US with the Michelob Ultra label, one can understand the critique. Moreover, when the Games reach Los Angeles in 2028 Michelob ULTRA will front the partnership, not Corona Cero. A critical perspective is also supported by considering how other no alcohol beers, such as Heineken, are sponsoring racing with no alcohol campaigns, in part to retain sponsorships without regulations.
While the critical perspective applied to Coca-Cola is somewhat different than that of Corona, the similarity is fundamental. Both brands want to retain their relationship with the Games. Coca-Cola began their partnership in 1928. The continuity provided by history is a key dimension of authenticity and consumers seek authentic experiences and authentic brands. Even with the understandable backlash regarding the pairing of an unhealthy soda brand with a healthy activity of sport, their shared history is known by most people on the planet. You can’t buy history; you can only make it.
Global brands like Corona and Coca-Cola value communication platforms like the Olympics and Paralympics that parallel their global distribution. These brands market in nearly every country in the world and the Olympics reaches nearly every country in the world. The IOC wants to avoid controversy since it is not good for their brand. They also want to attract and retain sponsors since 30% of their funding comes from TOP program marketing rights. In this new chapter of sponsoring, both sides want to retain their relationship, thus, the path to shared brand equity is to evolve so not to be barred from sponsoring.
