While the trade war between the United States and China is going on at full tilt for months, two of the biggest corporations from the two countries have come together to sign a gargantuan sponsorship deal for the Olympics. The sponsorship deal signed by soft drinks maker Coca Cola and Chinese dairy group Mengniu Dairy is going to be worth a staggering $3 billion, thereby making it one of the biggest sponsorship deals signed in sports. The deal is going to run from 2021 through to 2032, and the sponsorship will cover both the summer Olympics and the winter events that would take place during the period.
While the Olympics remain the biggest sporting event in the world, the massive sponsorship deal also reiterates the fact that it remains an attractive proposition for corporate sponsors. In the case of Coca Cola, it is not really a surprise since the company has supported the Olympics for more than a hundred years and managed to find a global audience for its products. However, this time, it has teamed up with Mengniu, and both brands will be accorded the status of non-alcoholic beverage partners by the Olympics. Mengniu is the second biggest dairy company in Asia, and the sponsorship could prove to be a springboard for the company if it decides to make a foray into overseas markets.
The Chief Executive Officer and Chairman of Coca-Cola, James Quincy, said,
With Mengniu, we saw an opportunity to expand the dairy aspect of the beverage category. We will be activating our own individual marketing plans, but we are pleased to be a joint partner with a well-respected dairy company that is well known to us in China.
Although no official announcement has been made with regards to the exact financial details of the deal, sources believe that the total deal could be worth as much as $3 billion. The Chief Executive Officer of Mengniu confirmed the company’s plans for international expansion when talking about the deal.
This historic joint partnership deal, together with our global expansion plans, will help Mengniu promote our long-held values around quality and safety.