The NHL has never shied away from its stance in that any deal they sign will strengthen their bottom line, but it seems that a limit has been reached for PepsiCo when it comes to how much the NHL wanted for Gatorade to remain as the visible sports drink of the league. Gatorade, for as long as I can remember has been the sports hydration beverage of choice on NHL benches, but that will cease to be once this season ends.
"The NHL has been a great partner for years, and while we weren't aligned on the financial commitment to renew, Gatorade will continue to have a presence in hockey," Jeff Kearney, Gatorade’s Global Head of Sports Marketing, told Boardroom. "We've had to be very thoughtful in where our resources, both people and funds, are going. So for us, we didn't want to over-commit in one space, instead focusing on reaching as many athletes as we can."
It's this stance that Gatorade has taken - one where they reach more athletes by committing less to professional leagues - that should make executives sit up and take notice because it isn't often that a brand like Gatorade has chosen to walk away from promotional opportunities with a sport's best players. The fact that this is happening might make a few other well-known brands look to spend less by not aligning themselves with professional leagues as well.
Kearney's post on LinkedIn explained the company's position when it comes to marketing its brand as Gatorade will shift its focus byb investing "in young and diverse athlete communities". This includes the NCAA, women's athletes and sports, and other unique competitions, so there may be some great opportunities to get a major sponsor such as Gatorade onboard for different events. Might we see Canada West Hockey presented by Gatorade? That could happen one day!
"We view ourselves as both a supplier of best-in-class equipment to help the athlete and the partner, but also a partner that when we work together can make an impact," Kearney said. "We're just trying to move sports and our partnerships forward in that fashion, taking a different lens on all the relationships that we currently have and that we're building in the future."
One shouldn't worry too much about the NHL. Someone else will step in and fill the expensive void left by Gatorade, but I commend Gatorade for looking out for their own brand by not committing a ton of money to the NHL that might have cost them opportunities elsewhere.
Gatorade's brand is big enough that they don't specifically need the NHL to continue to be popular, so this is a calculated decision that comes with very little risk. There may not be more than a handful of companies who can make a decision like this, but Gatorade did make it and they've opened a door that perhaps not many other companies would have opened.
In saying that, one has to wonder if the NHL lost an iconic brand in Gatorade because it almost seems like Gatorade lost an iconic brand in the NHL due to the NHL's demands. If there's one big positive, as Kearney stated, there will be lots of other opportunities for Gatorade to use its resources and money to continue to be a leading brand in the sports beverage industry. That can't be overlooked, and it may work to Gatorade's advantage in the end.
When Gatorade chose not to renew their deal with the NHL, that was "The Moment". And from that moment, endless possibilities may be born because Gatorade simply wasn't going to be held hostage by an expensive deal with the NHL.
Until next time, keep your sticks on the ice!
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