Labatt

Toronto IndyCar Race Signs Two Local Craft Brewers To Replace Labatt

Published May 18, 2012

The Izod IndyCar Series Honda Indy Toronto announced Thursday that Toronto-based Amsterdam Brewery and Muskoka Brewery "had signed on as sponsors, replacing Labatt, whose three-year deal as beer sponsor ended last summer,” according to Josh Rubin of the TORONTO STAR. Muskoka and Amsterdam will be “the only beer served on the downtown Toronto site of the race.” Indy Toronto VP & GM Charlie Johnstone said, “We had discussions with Labatt about renewing, but those conversations were going a lot more slowly than we liked. We spoke to the craft breweries, and they were very interested.” He added that because the deal is "officially with the Ontario Craft Brewers umbrella group, it could expand.” Johnstone: “This year there will be two craft breweries. Next year, we’re hoping there will be six.” Terms of the deal “weren’t disclosed,” but Johnstone said it was “a multi-year contract.” A source said that under terms of the old agreement Labatt "was paying ‘in the low six figures’ annually for its sponsorship." Muskoka Brewery President Gary McMullen said, “I think this is representative of where craft brewing as a category is headed, and of the momentum it has.” Rubin noted Sony and tech retailer CDW "also signed on this year" as sponsors for the race (TORONTO STAR, 5/18).

TROUBLE BREWING: Meanwhile, the GLOBE & MAIL’s Bruce Dowbiggin notes a “controversial advertising campaign” by Labatt, called "Hockey Playoff Payoff: Hockey Tickets For Life," has MolsonCoors, the NHL’s “exclusive beer rights-holder in North America, fuming.” Labatt lost the rights to MolsonCoors last year, but that “didn’t stop Labatt from still trying to exploit hockey as a promotional tool” in Canada. The promotion “doesn’t specify tickets to which team, but it implies that NHL teams are included.” MolsonCoors has “cried foul, pointing out that some commercial buys are in NHL cities, implying you can win tickets to those teams.” Labatt has “been vague about the details of how the tickets will be awarded.” The fine print says that the fan “could win the cash equivalent of tickets for life, say about $250,000.” Dowbiggin notes this “begs the question of what the NHL is doing to protect Molson’s exclusivity?” Sources said that the league “is waiting to see how Labatt tries to convert its promotion into actual NHL tickets before it acts." Should Labatt provide "authentic NHL tickets, then the league may have the legal connection to act” (GLOBE & MAIL, 5/18).