• Loading stock data...
Friday, April 26, 2024
  • -
    days
  • -
    hours
  • -
    minutes
  • -
    seconds

Constellation Brands Diversifying Partnerships Portfolio

  • Once pinning its sports marketing all to Corona Extra, Constellation Brands has expanded its deals across brands including Modelo, Pacifico and High West Whiskey.
  • Constellation Brands’ marketing investment in sports and entertainment has nearly quintupled the past five years.
Rickie Fowler
Constellation Brands

Constellation Brands, whose sports marketing spending has nearly quintupled in the past few years, is expecting that to likely continue to grow in 2021.

Led heavily by league and team partnerships – including three new NFL team deals — the company has also pushed further into golf after its Corona Premier brand announced a partnership with golfer Rickie Fowler, building on an existing partnership with the U.S. Open.

“Sports is a passion point that connects friends and complete strangers; it creates visceral experience that is hard to rival by other forms of engagement,” said Rene Ramos, Constellation Brands vice president of field, lifestyle and experiential branding. “It drives communal occasions where consumers’ senses are heightened and they’re in the moment together sharing the experience. 

“We look to become a part of that moment and bring something additive that helps set up our brands to be the beer, wine or spirit of choice within those moments,” he added.

Ramos didn’t speak to the specifics of the marketing budget, but Constellation’s first quarter earnings report in July noted a marketing spend decrease with sports programming like NCAA March Madness canceled. Constellation Brands Chief Financial Officer Garth Hankinson said in July the company still expected to spend between 9.5% and 10% of net sales in the full year basis on marketing. 

Net sales for company’s beer division in the first quarter were down 6.3% year-over-year to $1.3 billion. The company reports its second quarter earnings on Oct. 1. 

While the U.S. Open moves each year — and athletes like Fowler move across the globe — many of Constellation Brands’ partnerships are focused on major designated market areas, including Los Angeles, Chicago, New York and Miami. Its recent NFL partnerships are both teams in Los Angeles and the Las Vegas Raiders, a market in which its brand Modelo is the No. 1 beer. 

“Our sports portfolio plays a key role in helping us drive our market leadership and brand velocity in those DMAs,” Ramos said. “But we’ve also made some calculated investments in growth markets that will be new sources of volume for us in coming years. 

“The investments in those markets are growing steadily year-over-year as we’re making bets today for the business we are building for tomorrow,” he said.

Broncos Beer

NFL Beverage Partnerships Heat Up in 2020, Especially in New Stadiums

New NFL beverage partnerships this season include new Modelo, Pacifico and Corona…
September 11, 2020

The growth in partnerships is also diversifying within the Constellation Brands portfolio. Ramos said it wasn’t too long ago that Corona Extra was the “go-to brand for all things sports.” 

Its most recent deals included Corona Premier with Fowler; Corona Extra with the Los Angeles Rams; Pacifico with the Los Angeles Chargers; and Modelo and Woodbridge by Robert Mondavi with the Las Vegas Raiders.

Recent deals with the Los Angeles teams, Raiders and Golden State Warriors have also allowed for the building of “brand destinations from the ground up.” Those include Modelo Cantina at Allegiant Stadium, Chase Center and the Pacifico Patio, as well as Corona Beach House at SoFi Stadium.

“The model and approach for the Modelo Cantina has actually existed for several years but not to this scale,” he said. “It truly has given us the opportunity to curate a brand experience that we believe consumers will be blown away by once they’re safely able to attend events at these venues again.”

Other deals include a PGA Tour partnership with Meiomi Wine, a Woodbridge deal with MLB and the distillery High West’s association with the U.S. Ski and Snowboard team. 

Ramos also hinted Corona Seltzer — launched this spring and already the No. 4 seltzer brand in a swelling beverage category — will be active in the coming months.

Heineken US Strategy

Heineken Brands Build U.S. Sports Strategy With Focused Increments

As a global beer brand, Heineken is invested heavily in soccer -…
September 23, 2019

Figuring out which brands align with different partners is an algorithm of figuring out target audience, market share, and competitive activity. It also throws in brand slogans, like Models “Fighting Spirit,” which pairs nicely with UFC. Or Pacifico’s “Living Life Anchors Up” alignment with the X-Games.

“All of these help us tell our brand story and drive a different message with consumers, allowing us to effectively target our key demos nationally and locally,” Ramos said. “Each league and team plays a different role in a given market, so you may see more investment behind one type of sports property in a Midwest market versus the Southeast, for instance.”

In the Southeast, Constellation Brands is using its craft beer brand Funky Buddha in a partnership with the Florida Panthers — the company recently expanded its NHL partnerships with Modelo deals with the Dallas Stars and Seattle Kraken. The Panthers and Funky Buddha even partnered on a beer, “Gloves Off IPA.”

The Panthers partnership showcases how Ramos wants the team partnerships to go.

“If we’re having serious conversations with a potential partner, it’s because we’ve already vetted whether we think this can drive our objectives,” he said. “Our best partners are the ones that are helping us evolve our engagement strategy as we activate, constantly bringing new ideas and approaches to our teams. They believe that being connected with one of our brands brings as much value to them as their brand does to us.”

“I’m a big believer in one-plus-one equals three when it comes to aligning ourselves strategically with partners,” Ramos added.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NFL commissioner Roger Goodell addresses the crowd with Eminem and Detroit Lions Jared Goff, Amon-Ra St. Brown and Aidan Hutchinson and Hall of Famers Calvin Johnson and Barry Sanders on the stage before Round 1 of the NFL draft on April 25, 2024.

First Round of 2024 NFL Draft Averages 12.1M Viewers

The NFL and TV partners know quarterback-driven NFL drafts spell TV ratings gold.

Amazon Nears NBA Rights Deal, Eyes Sweep of U.S. Sports Leagues

The online retail and streaming giant picks up NHL content to join its presence in the NFL and MLB.

NFL Draft Grades: Belichick, Saban, and Detroit Get High Marks

A new attendance record for the NFL draft could be set this year.

‘Jaw-Dropping’ Noncompete Ban Could Shake Up Pro Coaching, Experts Say

Many pro coaches are banned from interviewing for other jobs without team approval.
podcast thumbnail mobile
Front Office Sports Today

NHL on Offense as Playoffs Heat Up

0:00
0:00

Featured Today

Everything You Need To Know About the Legal Attempts To Kill the ACC

Four lawsuits involving the conference, Clemson, and FSU could determine the future.
April 20, 2024

A Bare-Knuckle Fighter Won His Pro Debut. The Far Right Scored a Marketing Win

With Proud Boys sponsoring him, experts say extremist groups will use his success to elevate their ideologies and recruit new believers.
April 7, 2024

Women’s Basketball Finally Has a TV Deal to Match the Excitement. Now What?

A lucrative new media-rights contract could rectify problems of the past, but the future of March Madness media rights is anyone’s guess.
Mar 16, 2024; Washington, D.C., USA; North Carolina State Wolfpack forward DJ Burns Jr. (30) cuts the net after defeating the North Carolina Tar Heels for the ACC Conference Championship at Capital One Arena.
April 6, 2024

How Two College Seniors Helped DJ Burns Cash In on a Final Four Run

Two college seniors are facilitating deals for NC State’s big man.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Live Nation
Multiple - USA Careers
Adidas
Multiple - USA Careers
FanDuel
Multiple - USA Careers

The WNBA Has Huge Ambitions as Caitlin Clark Finally Comes Aboard

Commissioner Cathy Engelbert is aware of the moment in front of the league.
Drew Brees smiling while wearing hat
December 2, 2022

Drew Brees, PointsBet Pull Off Elaborate Lightning Publicity Stunt

The video racked up over 2 million views in about 12 hours.
March 11, 2024

WWE Borrows From UFC, Puts On-Mat Advertising in the Ring

The wrestling outfit is learning from its MMA counterpart’s playbook under the TKO Group.
Sponsored

Rapid Returns: How Technology Is Getting You Back to Your Seat

How Oracle’s POS technology is helping fans get back to their seats faster.
September 16, 2022

NBA Legend Scottie Pippen Latest Celebrity To Endorse LIV Golf

The former Chicago Bull is part of LIV’s celebrity marketing campaign.
al michaels and kirk hergstreit
September 15, 2022

Amazon’s Advertising Blitz Ahead Of First ‘Thursday Night Football’

‘Thursday Night Football’ has launched massive marketing takeover ahead of Chiefs-Chargers.
June 21, 2022

NBA Finals Broke Records on Social Media

The NBA closed out the season with a bang on social media, eclipsing 2 billion video plays for a 19% increase over last year.
June 21, 2022

Gallo Winery Could Be New Player For Super Bowl Spots

Anheuser-Busch is giving up Super Bowl alcohol exclusivity for first in decades. NFL sponsor E. & J. Gallo Winery might step up with own commercials in the Big Game.