(from SportsBusiness Journal, September 23, 2013) Keurig, a single-serve coffee and tea manufacturer, has entered the realm of national college sponsors by signing a deal with IMG College. This deal is the agency’s first national sale in a year. It is reported that Keurig gained “sponsorship rights to 25 schools across the country during the first year of the deal, 27 schools in year two, and 29 schools in year three.” The schools that are included are some of IMG College’s largest college properties in their 80-school portfolio.
Included in the deal, IMG Collegiate Licensing Company secured rights as the licensing agent that enables Keurig to manufacture its product in colors and marks of selected schools. As terms of the agreement were unavailable, industry experts estimate that the deal would likely be in the $5 million a year range. The deal took only six months to negotiate and finalize.
“IMG College defines a national deal as one that includes 25 or more schools and geographically covers schools from coast to coast.” One year ago, IMG College secured two national sponsorship deals with Lowe’s and Hershey. Just one year before that, UPS, Hyundai, and Miller Coors deals were finalized.
Green Mountain Coffee Roasters owns the Keurig brand and has faced mounting competition in the last two years. As other companies move into what was once their exclusive space, the pressure on Keurig to respond has increased. The IMG College deal marks Green Mountain’s first big sports sponsorship deal.
“Reaching college students is a great way to build the brand with the next generation,” stated Dwight Brown, Senior Vice President of Marketing at Green Mountain.
The agreement provides Keurig with rights to “provide signage in football stadiums and basketball arenas, advertising, and more than 50 sampling opportunities at big events on these campuses.”
“The real hook here is that they want to teach the next generation of coffee consumers to drink one cup at a time, not by the pot,” stated Andrew Judelson, IMG College’s Senior Vice President of National Sales.