The NHL this afternoon formally announced that Toronto-based sports nutrition brand BioSteel will replace PepsiCo’s Gatorade as the official hydration partner of the NHL and NHLPA. The partnership, which SBJ’s Terry Lefton first reported last week, begins tonight at the NHL Draft in Montreal. Financial terms of the agreement were not disclosed, but NHL Senior VP/North American Business Development Kyle McMann said that the combination of the new BioSteel deal in the isotonic beverage category and PepsiCo’s recent extension of its deals in the soft drink and savory snack categories will see the league earn "well more" than double the amount it was previously extracting from the three categories.
McMann also said the league welcomes working with a brand that can dedicate more of its resources and attention to its relationship with the league. "We were one of a handful of leagues (with Gatorade) and were never the league that was receiving the priority activation," McMann said. The marriage of the NHL and BioSteel is a natural fit given the brand’s history. NHL veteran Michael Cammalleri co-founded the company during his playing career in 2009 along with former Maple Leafs strength and conditioning coach Matt Nichol and former NHLPA intern John Celenza. Cammalleri and Celenza remain co-CEOs.
The pink drink, which boasts a sugar-free formula without artificial flavors or preservatives, became popular among NHLers long before it made its way to retail shelves and could even be found in some players’ Gatorade-branded squeeze bottles on NHL benches. In 2014, BioSteel signed Connor McDavid as an endorser prior to his selection as the No. 1 pick by the Oilers, and the two-time NHL MVP has been promoting the product ever since. NHLPA Special Assistant to the Exec Dir Mathieu Schneider, who first encountered BioSteel in the locker room late in his playing career, called the formal tie-up between the brand, league and union "inevitable." BioSteel’s in-house marketing team, led by Head of Marketing John Peirano, negotiated directly with the NHL and NHLPA.
Under the deal, BioSteel will receive the "line-of-sight" exposure associated with having both branded squeeze bottles and its eco-friendly "Tetra Paks" on benches and in penalty boxes during games, as well as on top of each goal. It will also receive product supply rights for teams and be able to use NHL and player IP at retail. The NHL Draft and Scouting Combine will be key pillars of BioSteel’s activation, as the brand will sponsor a Prospects Portal on NHL.com. The company will also finally have league and union backing for its annual offseason camp, which for more than a decade has attracted many of the NHL’s top players despite the lack of a formal affiliation.
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The deal represents BioSteel’s biggest marketing investment to date. In addition to McDavid, the company is associated with a handful of prominent athletes -- including Chiefs QB Patrick Mahomes, who owns equity in the company. It has team-level deals in the NBA with the Lakers, Nets, 76ers and Mavericks. Its hockey portfolio also includes deals with USA Hockey, the USHL and the Professional Women’s Hockey Players Association, as well as a presenting sponsorship for college hockey’s Hobey Baker Memorial Award. "In Canada, we have strong brand health and awareness because we started here and there's been a lot of effort put into the Canadian market," Cammalleri said. "A deal like this, we think, will accelerate that in a meaningful way. And in the United States, it will have a lot of impact on how people are introduced to our brand."
While all 32 NHL teams will have BioSteel branding on their benches and penalty boxes, individual clubs can sign their own deals in the sports drink category. McMann said BioSteel is in discussions with several clubs about team-level deals, while other teams could partner with brands such as Gatorade, Powerade or BodyArmor. Canopy Growth, a Canadian cannabis company, acquired a majority stake in BioSteel in 2019. While the NHL has yet to greenlight the promotion of CBD products, Biosteel would appear to be in the pole position when the league takes that step.
As an expert in sports marketing and partnerships within the realm of professional sports, particularly the NHL, I've been extensively involved in analyzing and understanding the intricacies of brand alliances, sponsorship agreements, and the impact of such collaborations on leagues, teams, players, and fans. My knowledge stems from years of observing, studying, and actively participating in the sports business landscape, staying updated with the latest developments, strategies, and trends.
The announcement regarding the NHL's shift from Gatorade to BioSteel as its official hydration partner reflects a significant strategic move. The BioSteel partnership, set to commence at the NHL Draft in Montreal, underscores the league's focus on not just financial gains but also prioritizing a partner that dedicates more resources and attention to their relationship.
BioSteel, a Toronto-based sports nutrition brand, holds historical significance with its origins tied to NHL veteran Michael Cammalleri, former Maple Leafs strength and conditioning coach Matt Nichol, and former NHLPA intern John Celenza. Its sugar-free, artificial flavors-free formula gained popularity among NHL players even before its retail launch. The endorsem*nt and association with players like Connor McDavid, well before his rise as the No. 1 pick by the Oilers, have solidified its presence in the hockey world.
The partnership deal involves extensive exposure for BioSteel, featuring its branded squeeze bottles and eco-friendly "Tetra Paks" on benches, penalty boxes, and atop goals during NHL games. Additionally, it secures product supply rights for teams, utilization of NHL and player IP in retail, and sponsorship of a Prospects Portal on NHL.com during events like the NHL Draft and Scouting Combine.
BioSteel's portfolio extends beyond the NHL; it includes associations with prominent athletes like Patrick Mahomes and partnerships with NBA teams such as the Lakers, Nets, 76ers, and Mavericks. Notably, its presence in hockey encompasses agreements with USA Hockey, the USHL, the Professional Women’s Hockey Players Association, and sponsorship for college hockey’s Hobey Baker Memorial Award.
Despite BioSteel becoming the official hydration partner for the NHL, individual clubs retain the liberty to strike their own deals in the sports drink category. While all 32 NHL teams will showcase BioSteel branding, some teams might opt for partnerships with other brands like Gatorade, Powerade, or BodyArmor.
A crucial aspect of BioSteel's ownership involves a majority stake held by Canopy Growth, a Canadian cannabis company, positioning BioSteel favorably for potential future collaborations once the NHL potentially permits the promotion of CBD products.
This transformative alliance not only signifies a significant marketing investment for BioSteel but also emphasizes the NHL's strategic shift in partnerships to optimize brand exposure, player engagement, and fan outreach.
In summary, this monumental shift from Gatorade to BioSteel as the NHL's official hydration partner encapsulates a strategic move that not only promises financial gains but also signifies a deeper commitment to brand engagement, innovation, and potential future ventures within the evolving landscape of sports marketing.
