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Coca-Cola's £20m Games money at risk from other sponsor deals
Matthew Beard, Olympics Editor13 Oct 2009
Coca-Cola is at war with London Olympics chiefs over proposals for a £20million sponsorship deal with a major British supermarket chain.
The 2012 organising committee, Locog, has been in talks with Sainsbury's and Marks & Spencer as it bids to sign up an official Games supermarket.
But soft drinks giant Coca-Cola has complained to the International Olympic Committee that such a deal would damage its own promotional campaigns in the run-up to the Games.
If a compromise is not found, Locog could see the potential £20million deal collapse in a setback towards raising the final £150million of its £700million in sponsorship for the 2012 Games.
Coca Cola has been an Olympic sponsor since 1928 and pays around £20million a year for global marketing rights.
The Atlanta-based company rigorously defends its marketing rights with the Olympic rings carried on its full range of bottled products, including carbonated drinks, mineral water and fruit juices.
Coca-Cola does not want its brands to have to compete for shoppers' attention alongside supermarkets' own labels also bearing the distinctive Olympic rings and 2012 logo.
The company fears any diminished impact of the brand would hit sales at a time when they would be expected to rise in the run-up to the Games.
The IOC allows each host Olympic nation to sell rights limited to the domestic market. Among these domestic sponsors for London are adidas, British Airways and Lloyds TSB, and Locog wants to add a supermarket to the list.
A senior IOC source said: "Locog stands to get a new sponsor in the retail category which would be worth a lot of money to them. But there are concerns from Coca-Cola that there may be a violation of its rights. It's something the IOC is trying to work through."
Coca-Cola declined to comment.
A Locog spokeswoman said: "We have had a lot interest from the retail sector in partnering London 2012 and are talking to more than one company. Retailing sponsorships are complex due to the wide range of products retailers carry.
"We need to make sure any deals we do in this sector do not impinge on any rights already purchased by the TOP [global] and domestic sponsors, so we are working through these complexities."
Reader views (3)
I reckon that this is more of a ruse on the part of Cocal Cola: it offers them an easy way out of what they see unfolding and probably don't much care for. They can see that the organisation and infrastructure is becoming a total shambles with venues still undecided upon, let alone the build started for many.
Coca Cola can see things like the 'iconic backdrop' we were promised at Woolwich (and supposedly so good it was worth throwing £42Million at and tear it down afterwards with NO legacy, also compromising the British Army and a local A&E Department, and NOW we learn this iconic view will be obscured by a 62 feet high netting screen to stop soldiers living and their children playing behind from being hit by spent shotgun pellets!!)
Coca Cola is, whether we like it or not, an internationally famous brand with a high brand awareness worldwide; why would they wish to risk tarnishing their reptatuion by being involved with this potential fiasco?
Better let the supermarkets in then Coca Cola can withdraw gracefully and let our home-grown companies play with the clowns. They will be back for future games for sure as no-one else could refuse their marketing power.Richard of Worcester.
- Richard Atkins, Worcester. England, 16/10/2009 15:45
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Fair point Steve but places like McDonalds and drink companies sposor all sorts of sporting events!
- Mark, Watford, 13/10/2009 19:25
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Cool! Coke has no place sponsoring the Olympics anyway, most of their products are bad for your health.
- Steve, Hackney, London, 13/10/2009 16:32
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