Burger King Has Its Own Way
THE LONG-AWAITED SALE of Miami-based Burger King is a done deal, with a consortium of U.S. venture capital firms snapping up the fast food giant for $2.26 billion. The firms include Texas Pacific Group (of which BK chairman John Dasburg is a member), Boston-based Bain Capital (which also owns the Domino’s Pizza chain) and investment banker Goldman Sachs.
According to BK officials, the fast food chain won’t change its marketing strategy “in the slightest.” After several years of struggle, Burger King is starting to improve with sales up one percent in the second half of 2001 and a retooled menu that debuted in the first half of 2002.
Franchisees unhappy with past management have been eager for BK to break with Diageo, and Dasburg has groomed BK to stand alone since taking the helm in 2001 (April PROMO). The BK sale is expected to close in the fourth quarter of 2002.
Campbell Soup Co., Camden, NJ, has named Olympic Gold figure skating Medalist Sarah Hughes as the first ambassador for Labels for Education, a 29-year-old program that gives educational equipment to schools nationwide. The multi-year deal puts the 17-year-old on more than 150 million labels of Chicken Noodle soup. An instant-win game will award a total of $300,000 in scholarships to 114 consumers, including 10 first-place prizes of $10,000 and 250,000 bonus labels for their school of choice. Plus, every soup can featuring Hughes is worth double value for Labels for Education. The partnership kicks off this month at a school in Hughes’ home state of New York, with Campbell’s donating $10,000 in supplies to that one school.
The Gatorade Co., Chicago, and New York City-based NBA struck a new multi-year partnership that designates Gatorade as the official sports drink of the NBA, WNBA, and National Basketball Development League, and includes courtside presence, player endorsement deals, and advertising. An NBA partner since 1984, Gatorade will develop a “hydration education” program with the league and continue its affiliation with the Jr. NBA and WNBA youth basketball leagues and the NBA Hoop-It-Up tournament. The sports drink will also headline the February All-Star Jam Session Invitation Tournament for middle-school teams.
Heineken, White Plains, NY, inked an agreement with Fox Television Studios as first sponsor of La Isla de la Tentacion, the Spanish-language version of reality show Temptation Island, to air on Telemundo. Heineken gets two 30-second TV spots during each episode, pouring rights for the on-set bar, and product placement for Heineken-branded beach towels, hats, and T-shirts. The series is currently taping in Thailand.
