1. Global Sport (& Event) Sponsorship
Robert Sparks and Shannon Jetté
November 28, 2005
The University of British Columbia
Vancouver, Canada

2. In your youth… A question for you…
How have you learned what you know about drinking alcohol, such as when to drink, where, why, how much, and so forth?
To answer, probably need to think stage of life (stage of drinking experience):
When you first started (15-16 yrs)
Now
In your youth…
Meaning of drinking shaped by:
Family
Peers (friends)
Direct experience
In media-intensive societies, we see that meanings and values connected with drinking are increasingly shaped by the mass media: television, movies, music/ videos, consumer brand advertising.

3. Background1
Major international alcohol corporations are using sport and event sponsorship in increasingly multi-functional ways to gain competitive advantage in the emerging global market.
This shift invites us to assess the impacts of alcohol sponsorship and of alcohol control policies themselves in more global and fundamental terms.
1(Sparks, Dewhirst, Jette & Schweinbenz, 2005)
Invites… “requires” us to…
Some of this multi-functionality includes sponsorship’s adaptability to the web and internet as a global communications strategy.

4. Multi-functional Uses of Sponsorship
Open doors politically (corporate “good citizen”)
Bridge cultural differences in the global-local market (invest in/capitalize on favorite local events and brands)
Develop strategic alliances (with suppliers, distributors, and other key groups)
Exploit under-developed markets (that will respond to the sponsorship techniques developed in mature markets)
Lock out competitors (to achieve a heterogeneous distribution of resources – “competitive advantage”)
Opening doors politically for global expansion (corporate “good citizen”)
Bridging cultural differences in the global-local market (capitalizing on favored local events and brands)
Developing strategic alliances with suppliers, distributors, marketers, and other facilitator groups
Identifying and exploiting under-realized markets (that will respond to the techniques developed in mature markets)

5. Top 4 Global Breweries (2004)
(sales)1 (volume)2
Anheuser-Busch $14,
Heineken $12,
SABMiller $12,
InBev $11,
1 US$ millions
2 billions of gallons
Remarks by Patrick Stokes, CEO A-B
“Stokes identified four priorities to stimulate growth:
improve the image and desirability of beer;
keep beer fun and social;
grow [increase] beer occasions; and
improve retail.”
(Pas, 2005)

6. In beer sponsorship in particular…
We are seeing a growing sophistication and integration of sponsorship-linked marketing methods that follow these guidelines.
Some of this is originating from abroad;
Some domestically, in response to the changing communications and marketing environment.
Organization of the Talk
Illustrate some of these developments in Latin America (particularly Brazil)
Policy issues
Some ideas for solutions

7. Recent LA examples…. Columbia Brazil Schincariol Nova Schin
AmBev (InBev)
Antarctica
Skol
Argentina
CCU (A-B licensing)
Budweiser
Columbia
Bavaria (SABMiller)
Cristal
Aguila

8. Schincariol’s use of events…
In 2003, Schincariol launched Nova Schin with aggressive price positioning and strong ad support (R$180 million each year 2003, 2004, 2005)
Events: Culture (Folio at Carnaval de Salvador), surfing (Nova Schin Festival -WCT), F1 (Globo TV)

9. Nova Schin Festival Brazil WCT

10. Industry Self-Regulatory Code
Brazilian Council for Self Regulation in Advertising
2000
Recommended that ads for alcoholic drinks not be associated with athletes at major sporting fixtures
2003
Celebrities appearing in ads must not be drinking
Scenes, photos, illustrations… that represent consumption of alcohol are banned from ads

11. AmBev’s use of sport sponsorship and events
AmBev began sponsoring the Brazilian National Soccer team with Guaraná Antarctica in 2001 (US $10million/yr)
AmBev introduced Skol Beats in 2003 aimed at youth (5.2%). This has been supported by Skol-themed events marketing.

12. Guaraná Antarctica sponsorship of Brazil National Team - Confederação Brasiliera de Futebol

13. Brand: BOA Antarctica
Brewery: Brahma (owned by AmBev, part of InBev)

14. Issue of brand extensions…
Using brand elements from an unregulated or socially acceptable product to help sell a regulated product or one that would raise concerns.
No apparent guidelines

15. Anheuser-Busch A-B competed with Interbrew for AmBev in 2004
Interbrew won
A-B lost distribution channel in Brazil, but is now using CCU partnership in Argentina to produce Budweiser, and Coca Cola to help distribute in Brazil.
A-B Sponsors River Plate, Argentina’s leading football team, and related properties.
Since December 1995, Anheuser-Busch has had a strategic alliance with leading Chilean brewer Compañía Cervecerías Unidas S.A. (CCU) to brew and market Budweiser in Argentina through the CCU-Argentina subsidiary. Budweiser is brewed locally at CCU’s Santa Fe brewery, where an Anheuser-Busch brewmaster oversees every step of the brewing process. Anheuser-Busch owns a 10.8 percent stake in CCU-Argentina.
In a landmark sports sponsorship agreement for Budweiser in Argentina, the King of Beers is the official beer sponsor of River Plate, Argentina’s leading professional soccer club. Through the sponsorship, River Plate team jerseys carry the Budweiser name. Budweiser also receives on-field, in-stadium and concourse signage, which provides the brand with further exposure. The agreement also makes Budweiser the official beer of River Plate’s other sports properties that include basketball, volleyball and handball.

16. River Plate (Argentina)
F1 - BMW Williams
This is issue of importing of ad messages, here within national context. Budweiser also receives on-field, in-stadium and concourse signage, which provides the brand with further exposure. The agreement also makes Budweiser the official beer of River Plate’s other sports properties that include basketball, volleyball and handball.
(AB sponsorship of River Plate, Argentina’s leading professional football club). Also sponsors basketball tournament in Mexico Ciudad Obregon

17. Bavaria (Columbia)
SABMiller (England) bought Grupo Empresarial Bavaria in 2005 for US$7.8 billion.
Two of Bavaria’s main brands are using sport imagery & sex in their marketing:
Cristal
Aguila
From Bavaria website, linked to cristal brand

18. Industry Self-Regulatory Code
Brazilian Council for Self Regulation in Advertising
2003
Women in bikinis, etc., must only appear in ads that portray beaches and/or swimming pools

19. Issue of Sport Sponsorship
Functions as an implicit form of social marketing
Attributes socially desirable qualities to alcohol & tobacco products, ultimately to the actions of drinking and smoking themselves, not simply to brands
Youth have been found to be particularly vulnerable to these messages (Sparks,1999)
One of the main principles driving this legislation is the understanding that the active association of alcohol and tobacco products with athletes, sports teams and sports events makes consumption of these products attractive, and thereby contributes to start up, maintenance, and social acceptability. This is to say that sports sponsorship functions as an implicit form of social marketing that attributes socially desirable qualities to the actions of drinking and smoking themselves, not simply to brands. Youth are thought to be particularly vulnerable to these messages, a point which helps to explain why sport sponsorship and sponsorship of cultural events that target youth have been singled out for restrictions, even in countries such as Portugal and Switzerland where alcohol and tobacco sponsorship are not yet banned outright.

20. Does alcohol sponsorship affect consumption?
Yes, but we need more research….
Some longitudinal survey evidence that sponsorship increases consumption among youth:
Ellickson et al. (2005) exposure to beer concession stands at sports or music events predicated f of 15 year old drinking.
Evidence that consumption goes up in the context of major events such as Carnival and World Cup.
Examples of “time outs” where people engage in “legitimate deviance” of excessive drinking.

21. But the consumption question somewhat misses the point
But the consumption question somewhat misses the point. What is the long term effect of these brand strategies?
The increased marketing of youth-oriented alcohol sponsored events, in particular:
Insinuates beer and drinking into youth culture, but outside the context of family controls.
Provides parallels to Carnival and World Cup, but on a continuing, mass produced basis.
Sells drinking as a functional component of socializing, dating and having fun. (Stokes, CEO of A-B)
Normalizes association between masculinity, sport and beer: men as doers & drinkers, women as watchers & drinkers.
Family controls have been credited with keeping the consumption rate of alcohol down in Brazil.
Student athletes already drink more in Canada, for example, than other students groups.

22. What to do? Will need cross-national strategy
Framework Convention on Tobacco Control is good model.
In our experience with tobacco, other categories will step up: telecoms, transportation, .com’s, more.
They have been “locked out”

23. FCTC sponsorship-related clauses
Sponsorship: ‘any form of contribution to any event, activity or individual with the aim, effect or likely effect of promoting a tobacco product or tobacco use either directly or indirectly’
Each ratifying country:
‘in accordance with its constitution or constitutional principles, [shall] undertake a comprehensive ban of all tobacco advertising, promotion and sponsorship’
[shall adopt and implement legislation] ‘providing for protection from exposure to tobacco smoke in indoor workplaces, public transport, indoor public places, and, as appropriate, other public places’
Broad definition of sponsorship
Sweeping ban, but in accordance with national principles.
Indoor public places, other public places
This overturns the issue of banning sponsorship but not cigarette sales and smoking at events.

24. Issues in global markets (Kotler, 1986)
Legislation, regulations
Cultural differences
Performance expectations & standards
Local customs & knowledge
Networks & key contacts
Competitors (domestic & international)
Nevertheless, there are a series of well-documented issues in working in global markets.
These are potentially significant encumbrances for successful sponsorships and marketing activities.
Nova example (South America: “no va” means “won’t go”)