Rugby Collectors cups

THREE WAYS MAJOR EVENTS, VENUES AND SPORTS WASTE MONEY

Events and Venues are always trying to reduce cost and make a marginal profit. The margins are so small that most events struggle to find their way through it, and as a result often end up losing money. 

Below are 3 ways events can save money, improve their event, and improve the overall experience: 

 

Catering at Dunedin Stadium

Catering at Dunedin Stadium

1 Catering

There is a reason Sydney Showgrounds' catering is kept in-house. It's the same reason Vector Arena recently stopped outsourcing their catering.

Catering companies offer venues large cash incentives and free machinery investment, but more and more venues are now waking up to the fact that nothing is free. 

Why?

Every dollar counts, including money made over the bar from drink and food sales. More importantly fans don’t show up to an event for the music, rugby or event itself - they show up for the experience. 

THE EXPERIENCE IS EVERYTHING. 

Catering companies make most of their money from the backhanded rebates from food companies. The stadiums outsourced catering sell's a Coca Cola for $6, few people buy it due to the high cost, and then the stadium's catering books show “no money”, but back at the catering company's Head Office Coca Cola just paid a nice fat check for the opportunity to sell its sugar water at the venue. The Catering companies HQ makes a lot of money. 

The interest of the catering company is not to make the event experience better, it is to increase margins and make more money. 

It is a conflicting interest with the event organizers and venues.  

So why do venues outsource their bread and butter to catering companies? 

The first reason is the incentives, but beyond money, the main reason is that it removes any risk and blame from the venue organizers. When something goes wrong at the event, (long lines and slow service) the event organizer can blame the catering company. 

So what can event’s do? 

Bring their catering in-house. It is easier said than done. But if you can find the special someone who has the leadership to make this happen, you will never look back.  

Get in contact with someone like, Matthew Lazarus-Hall - Owner of Uncommon cord - he has a wealth of strategic knowledge in the entertainment industry. 

2 Waste Management

Reusable cups from England Rugby World Cup Image from  Sportbuzzbusiness

Reusable cups from England Rugby World Cup Image from Sportbuzzbusiness

There is a reason almost every Rugby Club in France has a set of reusable cups. 

It is the same reason the Rugby World Cup introduced a reusable cup system at the 2015 events in England. 

And it is the same reason the Rio Olympics had 45 different reusable cup designs that made not just a major impact on waste but increased their beer sales dramatically. 

Waste management cost are increasing year on year. There is no option for events, but to bow down to $40,000 + waste bills. 

What is the main reason for the waste? 

Disposable products. 

Disposable cups. Disposable Tents. Disposable Food Packaging. Disposable everything. 

There is a reason San Fran decided to eliminate disposable bottles from the city and it is the same reason France has banned disposable food packaging from 2020 . 

It is why major sports teams and venues like Twickenham and Stade de France are leading the charge for reusable products in Europe. 

Reusable products not only reduce waste but increase beer sales, create a souvenir and whole new revenue stream for sports teams and venues. 

Lets hope more Sports business in New Zealand and Australia open up to the opportunity. 

Reusable cup system that was intergrated in Europe 

Reusable cup system that was intergrated in Europe 

 

 

3 Alcohol Laws

 

Lets face it, we all just want to have a good time. 

How do you increase cost to an event? 

Health and Safety. 

Why? Everybody has to comply with Health and Safety. Nobody refutes it. Society abides by the state law as there is no alternative. 

The result? 

Health and Safety brings increase paperwork, which brings on extra cost. 

It is how the Dairy industry saw Fonterra grow and take out all small milk producer. 

It is how the meat industry created 3 big companies and eliminated the hundreds of small processing plants. 

In the event industry the big push right now is Alcohol Laws. 

It is now seeing many events almost go out of business. This includes racing club's, major venues, festivals, and more. 

The worst part - every region has different restrictions and different ideas about intoxication. 

So what can you do? 

Smart events like Toast Martinborough have hired a new events manager who understood all alcohol compliance in-depth. This means more events need to find managers who have a clear understanding of all the laws and build relationships with the authorities.

Other event organizers are putting $10,000-$20,000 aside for miscellaneous spending towards health and safety type incidents and their lawyers fees. 

The RIO Olympics SECRET to DRIVE UP BEER SALES....MARKETING

RIO OLYMPIC REUSABLEGLOBELETS BY SKOL

Ambev's paid a high price for sponsorship at the Rio Olympics, but it was worth it. 

The Brazilian beer company introduced it's Skol brand to the world of reusable souvenir cups, each one emblazoned with a different Olympic sport.

The strategy led spectators to guzzle hundreds of extra litres of beer in the hope to accquire the whole collection of 42 different cups. 

Not only did Ambev sell vast amounts of beer, it has gotten the Skol name into kitchen cupboards across the world. (Globelet Director, Linda Jenkinson brought back 20) 

The popularity of the Globelet concept makes sense at an event where T-shirts from the Rio 2016 megastore cost 95 reais ($30NZD), making a $13-real beer-and-cup offering a bargain.

The faceoff between Brazilian and Swedish women soccer teams the semi finals - based at the Maracana soccer stadium - demonstrated how much of a hit the cups were. Skol's beer stations were bustling with activity.

"Of course I'm buying more beer because of the cups," said Claudia Maria Dias de Sousa, 58, a physical education teacher from Belem, Brazil. "They're souvenirs for my friends from the Rio Olympics."

The collection of cups from every sport at the games. 

 

Dias de Sousa said she has collected eight of the hard plastic cups so far. She was overheard requesting a basketball cup because soccer had sold out. At a basketball game Saturday night, a spectator tossed one of the yellow and green cups into a trash bin at half time. Within a minute someone had retrieved it, adding it to a stack of more than 10 he was carrying around.

"People will go for the perception of getting something that's special and spend the extra money," said Joe Favorito, a sports marketing expert who teaches at Columbia University in New York. "It's a great branding opportunity for Skol."

Ambev, which is controlled by Anheuser-Busch InBev NV, needed to deliver strong results at this year's Olympics. With Brazil mired in recession, the company sold less beer by volume in the second quarter than it has in the last seven years, while also losing market share to less expensive rivals. Chief Executive Officer Bernardo Pinto Paiva told investors on that 2017 could be better as consumer confidence recovers and inflation slows.

The idea was to pay homage to the different Olympic sports, instead the cups turned into a hot collector's item, Bruna Buas, Ambev's Olympics manager, said through a press officer.

In response to the cup craze and to promote responsible drinking, Ambev said it has set aside space at venues where fans can exchange cups as if they were Pokemon cards.

Skol's strategy isn't totally unique. Budweiser, which Ambev sells as a premium brand in Brazil, had a collectible cup at the FIFA World Cup in Brazil in 2014. Coca-Cola did something similar. But the gimmick of building a collection of Skol cups sets it apart. It also means beer salespeople must often negotiate the details of the cup before serving a beer.

Let's hope the All Blacks, NZ Cricket and stadiums want to get in support of a similar concept in New Zealand and Australia. Globelet is here to make it happen. 

Rio Collectors Cup