With the NHL season now resolved, industry sources said sports drink brand BioSteel is close to taking the wraps off a new NHL league sponsorship, with rights taking effect next season. The deal marks BioSteel’s biggest move yet into hockey and comes after PepsiCo’s venerable Gatorade brand couldn’t agree on a price with the league and walked away from the rights it held since 2006.
Coca-Cola had NHL rights for its Powerade sports drink from 1997-2006, a move which also ousted Gatorade from the NHL.
Securing NHL rights marks the end of a long quest for hockey intellectual property by Toronto-based BioSteel, headed by CEO Mike Cammalleri, who played 15 years in the league. BioSteel also has sponsorships with USA Hockey, the USHL, Professional Women's Hockey Players Association, NHLPA and a personal deal with two-time league MVP Connor McDavid.
Other notable sports expenditures by BioSteel include sponsorships with the Lakers, Nets, 76ers and Mavericks (including entitlement to the Mavs’ training facility), some NBA2K League and WNBA teams. There's also an equity deal with Chiefs QB Patrick Mahomes and a sponsorship with U.S. Soccer (significant in a World Cup year).
It's a turbulent time in the sports drink market, which has been long dominated by Gatorade (70% market share). With its acquisition of BodyArmor late last year, a brand in which it had bought an 15% stake in 2018, co*ke now has two sports drink brands. BioSteel is now fifth in market share, behind Gatorade, Powerade and BodyArmor and Electrolit, according to Gerry Khermouch at Beverage Business Insights. BioSteel told investors earlier this year that it’s aiming hard at the No. 4 spot in the U.S.; NHL rights are clearly part of its strategy to get there.
The sports beverage industry is a fascinating field, and BioSteel's recent strides into the NHL sponsorship realm highlight the competitive landscape within this market. BioSteel's move into hockey isn't just a simple business maneuver—it signifies a strategic play backed by a rich history within sports partnerships.
Firstly, BioSteel's CEO, Mike Cammalleri, boasts significant NHL experience, having played 15 years in the league. This intimate connection to the sport lends credibility to BioSteel's understanding of the hockey community's needs and preferences, setting a solid foundation for their NHL sponsorship endeavors.
Moreover, BioSteel's existing sponsorships with prominent entities like USA Hockey, the USHL, Professional Women's Hockey Players Association, NHLPA, and individual athlete deals (such as with Connor McDavid) showcase their deep involvement in the sports world. This extensive network suggests a nuanced understanding of sports marketing and partnership dynamics.
The context around Gatorade's historical presence within the NHL, losing its rights to BioSteel, adds weight to the significance of this shift. Gatorade, a long-standing dominant force in the sports drink market, failing to reach an agreement with the league underscores BioSteel's potential to disrupt this status quo.
BioSteel's strategic partnerships with various NBA teams (Lakers, Nets, 76ers, Mavericks), involvement in esports (NBA2K League), WNBA teams, and collaborations with notable athletes like Patrick Mahomes demonstrate their multifaceted approach to sports marketing across different domains.
The broader market dynamics, with Gatorade historically holding a 70% market share and Coca-Cola's maneuvering with Powerade and BodyArmor, add context to BioSteel's positioning. Gerry Khermouch's insights on market share position BioSteel as the fifth player, aiming aggressively for the fourth spot, a goal that aligns with their recent NHL sponsorship move.
Overall, BioSteel's meticulous approach to partnerships, their alignment with key players in various sports, and their strategic intent to climb the sports drink market ladder position them as a formidable contender in this evolving industry.
