RE:RE:Bio-steel rumors heating up Sources: NHL bringing on BioSteel to replace Gatorade
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, Coke 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.
Potential for BioSteel in the CBD space?
There are also some intriguing side notes to this deal.
At a time when CBDs are gaining in popularity and legitimacy (MLB recently approved them as a sponsorship category), Canadian cannabis producer Canopy Growth, which trades on the Toronto Stock Exchange under the symbol WEED, owns a majority stake of BioSteel. Ready for a CBD drink on NHL benches?
There have been BioSteel-branded CBD supplements on the market for more than two years now. Making the deal even more incestuous is the fact that brewer Constellation Brands owns a majority of Canopy -- and any big brewer has considerable influence across pro sports.
I also wrote about the potential for CBDs in sports sponsorship in this week's SBJ.