2007-04-04

Bye, bye Blue

How Molson knocked Labatt out of Ivor Wynne
By Lisa Grace Marr
The Hamilton Spectator
(Apr 4, 2007)
Molson has snared a share of the Tiger Cats' roar just as Labatt has loped into town with its purchase of Lakeport last week.

Molson has signed a four-year sponsorship deal, which Mandeep Malik, a marketing professor at Mac, calls a "coup."

"I'm sure they put out some big dollars for the Tiger Cats, but on the other hand, (the Tiger Cats) offer value. I'm sure beer consumption at Ivor Wynne is higher than at a lot of other venues and they have the fans," he said.

The Ticat's rejuvenated profile brought the team a higher value, and that got them shopping around for a new corporate sponsor once the deal with Labatt, which had lasted for 12 years, ended.

"Over the last three years, the Tiger Cats has increased its brand," said Mark Bowden, vice-president of corporate partnerships for the Ticats. "Our attendance and television ratings were way up, there were just more people going to the stadium."

Bowden said it was more than just money that led the Tiger Cats to switch allegiances: Molson also has plans to get the Ticat brand out of the stadium in conjunction with other licensing partners into the Greater Hamilton area.

Rick Tousaw, Molson area vice-president, said the brewer is more interested in using tickets to get more people in the stadium. "We waived our rights to on-field signage to get more tickets for on-premise promotions," he said.

Molson has also sponsored the Hamilton Bulldogs for years, so knows the market, said Tousaw. Molson is also the sponsors of four other Canadian Football League teams and the league itself.

The move was a blow to Labatt.

"We were disappointed they've chosen to go in a new direction," said Neil Sweeney, vice-president of corporate affairs at Labatt. "It's a very competitive market. Molson and ourselves, we do battle all over the place."

Sweeney said Labatt is still "assessing" Lakeport after closing its purchase deal late last week. The company intends to be active promoting its brands in Hamilton this year despite the sponsorship loss.

Gary Prouk is principal for the Sebastian Consultancy in Toronto and has created many ad campaigns for the beer industry. He said while the two companies fight for market share constantly, both have a distinct lack of innovation and novelty when it comes to strategy.

"They tend to mimic or follow each other. If Hamilton had a major-league baseball team, Molson would want that. The beer taste is so similar, they're packaged the same, marketed the same."

Prouk said the breweries' sponsorship of sports teams has more to do with flexing marketing muscle than using it. "Much of what beer companies do (in marketing) is done by ego and testosterone."

Tousaw said sponsoring the Tiger Cats is about differentiation, reaching the minds of Hamiltonians through a brand that resonates. "We know how important the Hamilton Tiger Cats are in the minds of our consumers."

lmarr@thespec.com 905-526-3992
Used with permission from The Hamilton Spectator, www.thespec.com Copyright The Hamilton Spectator. All rights reserved.