Diageo's sponsorship of Jamie McMurray's No. 26 Ford has grown to race sponsorship. Credit: Autostock

Diageo buys another round of sponsorship

One has only to look at Diageo's corporate strategy to figure out why, in the last two weeks, the company has announced two new motorsports initiatives.

Last week, during the Samsung/Radio Shack 500 weekend at Texas Motor Speedway, Diageo, which makes Crown Royal among other adult beverages, announced a short-track initiative for Tony Stewart's Eldora Speedway.

On Monday, the company announced it had bought the presenting sponsorship for the spring race at Richmond International Raceway for the next several years.

As you know, the company is the primary sponsor for Roush Racing's No. 26 Ford Fusion driven by Jamie McMurray in the Nextel Cup Series, as well as the Crown Royal International Race of Champions series. Its Crown Royal Special Reserve brand is also the presenting sponsor for the Grand American Rolex Sports Car Series and for that series races at Long Beach and Watkins Glen.

A quick look at the company's broad strategy shows that this recent flurry of activity is just another day at the office for Diageo.

The first strategy pretty much says it all: "We will invest more to take leadership positions in every category, market and consumer occasion in which we choose to compete."

That's word-for-word from the company's Web site, and it matches -- word for word -- what the company has done over the first few months of the 2006 racing season.

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Since NASCAR opened the door to spirit sponsorship in late 2004, Crown Royal has been buying rounds for the house, so to speak.

The latest announcement, title sponsorship of Richmond's spring race, is simply the most recent aspect of company strategy.

"We are honored and proud to have such a significant presence during a race at one of NASCAR's most entertaining and popular tracks," said Jim Lorenz, Senior Brand Manager, Crown Royal, in making the announcement.

"Richmond International Raceway will always be special to Crown Royal and our consumers as it was the site of our first-ever victory. The promotional agreement for the race name provides us with yet another platform to advance our 'Be a Champion. Drink Responsibly.' message."

Jamie McMurray

That message is the centerpiece of all of Crown Royal's motorsports endeavors, and it is central to their presence on the midway as well. Crown Royal has one of the most popular displays every week it is on the road, with thousands of fans flocking to the black tents with purple trim.

Crown Royal replaces Chevrolet as sponsor of the spring race, which brings us to another strategy point.

"We will invest more resources behind these ... brands with the best growth prospects."

In other words, Diageo has focused on NASCAR and motorsports as the vehicle it will use to drive sales of Crown Royal, and as long as growth potential remains, it will continue to pump dollars and effort into the marketing of its involvement.

RIR President Doug Fritz is all for that.

"Having Crown Royal on board is a great fit for Richmond International Raceway," said Fritz. "Two top, historic brands are coming together to form a terrific partnership. We are looking forward to an exciting promotional relationship that will benefit race fans for years to come."

Richmond, founded by Paul Sawyer and recently purchased by the International Speedway Corp., has sold out 28 consecutive Cup Series races, will become just the fourth track in NASCAR history to host 100 races on May 6, when the Crown Royal 400 gets the green flag. Only Daytona, (118) Martinsville (115) and Darlington (105) have hosted more races than Richmond.

Jamie McMurray has two top-10 finishes in seven Cup starts this season. Credit: Autostock

Crown Royal, according to the company, is the top-selling brand of Canadian whiskey. It was first blended in 1939 to celebrate a grand tour of Canada by King George VI and Queen Elizabeth of Great Britain.

With its expansion into NASCAR racing and motorsports, Diageo is getting about fulfilling another key strategy point: premiumization. That's why the Crown Royal Special Reserve brand is involved in sports car racing with the ISC-controlled Grand American Series building its luxury brands profile.

Diageo, the parent company of Crown Royal, is considered the world's leading premium drinks business, and looking at its lineup, one can understand why. In addition to Crown Royal, Diageo produces Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Beaulieu Vineyard and Sterling Vineyards wines.

Of those, Johnnie Walker, Smirnoff, Baileys and Guinness are the most global trademarks. Smirnoff, the company announced last week, is the top-selling premium distilled spirit in the world for the second year in a row, surpassing Bacardi in terms of sales volume and value.

The global company is traded in more than 200 countries around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).