Heineken, one of the biggest global beer brands, has entered into a multi-year partnership with Formula One Management to become the official beer brand of the track race. The deal comes with the right to trackside advertising and title sponsorship of multiple races over several seasons.Â
The Dutch beer giant revealed the news ahead of the Canadian Grand Prix on Thursday at the paddock in Montreal.
Besides the title sponsorship, the Heineken company will also have access and exclusive rights to F1 events. The brewery has also planned live fan events, PR campaigns, and other digital events and experiences.Â
The presence of the beer brand will be seen at most F1 events. The deal is expected to extend till the end of 2023 and has an estimated worth of US $250 million.
Table of Contents
Heineken, the world is full of great drivers.Â
How much does Heineken pay for F1 sponsorship?
Heineken pays $50 million annually to F1 for sponsorship. The Heineken sponsorship deal has been running since 2016. It has been sponsoring at least three titles every year. The deal will continue till the end of 2023, and Heineken is paying about $250 million to sponsor Formula One.
Key takeaways
- The new sponsorship deal with the brand Heineken has put them in the position of the title sponsor of the race, and the race next year will be titled Formula 1 Heineken Silver Las Vegas Grand Prix 2023.
- Heineken has hinted at making more efforts to bring in increased fan engagement with the event.Â
- By indulging in live fan events, PR campaigns, and more digital marketing, Heineken expects to create massive value for the brand. It is estimated to gain a value of over $400 million through this deal. This is a striking decision as the brand is known for its marketing tactics.Â
- As Heineken is a huge global brand with amazing marketing, it is expected to increase the reach of Formula One. F1 has lagged behind other major global sporting events, and the beer brands hope to change this with the new deal.Â
- Title sponsorships are more lucrative, with better exposure during the F1 events. The brand with the title sponsorship gets the right to include the name of the company in the title of the event and advertisement on the prominent banners all along the track.Â
- Heineken executive considers F1 and their company a good match as there is a potential for skill transfer between the two organizations’ employees.Â
- Heineken intends to tap into the existing global market of F1 by providing opportunities for three different areas – skill transfer between employees, giving a platform for responsible drinking in creative ways, and commercial access to products.Â
- The sponsorship contract between F1 and Heineken is for eight years (from 2016-2023).Â
- The deal is worth $250 million and is expected to return over $400 million to the beer brand.
How many years has Heineken sponsored F1?
Heineken has sponsored F1 for eight years, with the deal starting in 2016 and ending in 2023. This is not the first time that the beer giant has sponsored any major sporting event. It has done this with several other sports in the past. Heineken has been looking to revise their sports marketing strategy with their involvement in the Formula One sponsorship.Â
The big sports sponsor has partnered with UEFA Women’s and Men’s football leagues in the past. It has also sponsored the UEFA Champions League. Heineken has also sponsored the Rugby World Cup. These sponsorships remain one of the biggest assets in the marketing cap of the Heineken brand.
Does Heineken have any partnership with Formula 1 besides sponsorship?
Heineken is a sponsor for Formula One. Besides their hefty sponsorship, the beer brand has also entered into a contract as the title partner for at least three Grand Prix Events. The brand is also the sole global beer provider for Formula One exclusively.Â
The beer brand will have a presence at most of the Formula One World Championship Events, but there will be no marketing of the company done on the cars. In the partnership, Heineken will be responsible for live experiences, PR events, and other fan engagement experiences. There are no other partnerships between Heineken and Formula One besides these.
Does Heineken sponsor any F1 teams?
The company has been announced as the title partner for the Grand Prix in Las Vegas in 2023, but it does not sponsor any specific teams for the racing events. Heineken is mainly a sponsor and partner in the title of the event. It won’t be seen on any team’s car, but the advertisements will be present on the side of the track.
Biggest Formula One partners and sponsors
| Sponsor | Est. sponsored amount per year |
|---|---|
| Aramco | $40-45 million |
| Crypto.com | $20 million |
| DHL | $30 million |
| Heineken | $50 million |
| Pirelli | $30 million |
| Rolex | $45 million |
| MSC Cruises | $30 million |
| Salesforce | $30 million |
| AWS | $10 million |
| BBS Motorsport | N/A |
| Ferrari Trento | N/A |
| Lenovo | $20 million |
| Liqui Moly | N/A |
| Zoom | N/A |
| 188Bet | N/A |
| Workday | N/A |
| Drive coffee | N/A |
| Herjavec | N/A |
| AlphaTauri | N/A |
| Read more about all Formula 1 sponsors | |
Several big names of companies in various niches have partnered with formula one management as their sponsors. These deals and partnerships lead to mutual benefits for the company and the Formula One event. With a huge audience viewership for the f1 races globally, the sponsorships provide a wide marketing tactic to the companies and serve as a major revenue source for Formula One.
Here are some of the biggest names that sponsor and have partnered with Formula One in various capacities.
Aramco
Aramco became the main sponsor for the Formula One team Aston Martin in 2022. Aramco is a giant oil and gas company based in Saudi Arabia. The sponsorship allowed the company to use its name in the team name. The title of the team is now called Aston Martin Aramco Cognizant Formula One Team.
The sponsorship has provided the opportunity for the oil and gas company to bring its name to the global stage in front of a massive audience. Through the deal, Aramco will increase its research efforts on the latest mobile technology and continue work on sustainable fuel, which will be available to the Formula One team until 2025. The sponsorship deal has been fixed since the year 2020.
Crypto.com
Crypto.com is the title sponsor for the Miami Grand Prix. The company entered into a nine-year deal with Formula One. The sponsorship deal began last year and marked one of the first sports deals for the crypto platform worth such a vast amount.
The deal is worth $100 million and was signed last year in June. Most of the teams, about 80%, have partnered with at least one crypto sponsor. The deal has given full-view advertising on trackside and other places for the whole season of the Grand Prix to the crypto platform. As crypto’s craze is increasing among fans, people have witnessed the crypto platform’s logo all over the f1 racing events.
DHL
DHL and Formula One have one of the longest sponsorship deals. The partnership has been going strong since 2004 and has been renewed recently. DHL is the main logistics partner for Formula One, providing services like mail and delivery. The 40-year-long partnership has provided huge mutual benefits to both sides.
Emirates
Formula One and Emirates are no longer involved in a partnership. Emirates’ sponsorship deal with Formula One has continued since 2013, but it ended this year. Their deal included rights to about 15 races and other programs too.
The sponsorship with Emirates was one of the most lucrative for Formula One. It was worth $25 million annually for the race event. However, due to the increased demand for Formula One management, the partnership ended.
Heineken
Heineken is a global beer brand that has entered into a sponsorship deal worth $30 million annually with Formula One. The deal is to continue till the end of 2023 and has a combined value of $250 million. Heineken has title rights for several F1 races and advertises along the trackside in almost all F1 races. Heineken aims to increase fan engagement and bring a message of responsible drinking for all people.
Pirelli
As their tire manufacturer, Pirelli entered an exclusive deal with Formula One in 2011. Their deal was recently renewed till the end of 2023. The company has been a part of several motorsport events since 1907.
Pirelli ensures that Formula One cars get top-tier tires, and in return, the company can advertise during the f1 races. The preference of Pirelli for Formula One tires comes from their use of green and sustainable technology for their products.
Rolex
Rolex has been a long-time partner with Formula One since 2013. The deal is worth $40-45 million annually. The luxury Swiss watch brand is still one of the top sponsors for the f1 events, and it gets to advertise its luxury products to a massive audience in return.
MSC Cruises
MSC cruises is a top cruise operator in Europe, and it has entered into a multi-year deal with the F1 management recently. The sponsorship deal began at the Bahrain Grand Prix in 2022 and is worth $20 to $30 million annually. The company has signed the deal to become the official cruise partner for the racing events. The combined deal also involves title sponsorships and is worth about $450 million.
Salesforce
Salesforce is a cloud-computing company that manufactures and sells software products that help businesses deal better with customer services management, sales tasks, cloud services, and more.
The partnership between Salesforce and Formula One is worth $130 million, and the company deals with marketing, customer services, e-commerce, and other related areas for the Formula One event. Currently, the contract is signed for five years.
AWS
AWS is a platform associated with Amazon that provides cloud computing and related services. AWS became a global partner for the Formula One team Scuderia Ferrari in November 2022. The company is expected to work on innovation and bring about digital transformation in Formula One events.
Lenovo
Lenovo manufactures different technological products and is based in China. The company entered into a sponsorship deal with F1 in March 2022, right before the tournament season, and it is a global partner in providing computers, servers, and other technologies. The partnership showcases the technological capabilities of the company to the world.
Conclusion
There are several sources of revenue for Formula One events. Sponsorship deals with global brands are one of the primary sources of revenue. However, besides revenue, there are factors that Formula One management considers before signing on with a partner.Â
There are several goals that the racing event aims to accomplish, such as sustainability and digital transformation. The sponsors on board provide opportunities to accomplish these long-term goals along with the revenue source.Â
Moreover, the deals come with mutual benefits. While they are beneficial for racing events, they also provide a source of massive advertisement for global brands.
Article sources
- https://sportskhabri.com/sponsors-list-for-formula-1-heineken-grande-premio-de-portugal-2021/#:~:text=Since%20then%2C%20Heineken%20has%20been,~%2430%20million%20a%20year
- https://sportsmintmedia.com/heineken-becomes-title-sponsor-of-formula-1-las-vegas-grand-prix-2023/
- https://www.foxsports.com.au/motorsport/formula-one/f1-heineken-signs-337-million-deal-to-become-the-global-beer-partner-of-formula-1/news-story/3117522ce1eb309df9cb89e591794c21
- https://www.skysports.com/f1/news/12433/10302300/heineken-seal-multi-year-formula-1-sponsorship-deal
- https://www.forbes.com/sites/csylt/2019/05/19/revealed-sponsors-fuel-formula-one-with-30-billion/?sh=6e8659d32416
- https://www.warc.com/newsandopinion/news/heineken-increases-sports-sponsorship/35318
