Companies Find Benefit in Sponsoring Cycling Teams

Every time Fayetteville cyclist Kyle Kruger puts on his Snapple jersey and participates in a race or tour, the brand’s name reaches a growing demographic.

According to USA Cycling, the official governing body for competitive cycling in the U.S., there were 63,819 licensed cyclists as of Sept. 4, 2009, a 5.4 percent increase over 2008 and nearly double the 33,481 from a decade ago.

Cycling has steadily grown into a mainstream sport and corporate sponsors are seeing the benefit of putting their names on teams as a cost-effective way to promote their brand.

Kruger, a project engineer with Garver Engineers in Fayetteville, said the team sponsorship benefits both the cyclists and the company.

By being a part of a sponsored team, he said, he gets to race with experienced and dedicated cyclists.

He also gets support from Snapple through products and financial contributions.

The team receives reimbursements for a portion of their entry fees throughout the year. On longer trips and races with multiple stages, Kruger said the sponsor also covers the cost of hotel rooms and partial fuel reimbursement.

Jon Landes, a branch manager for 7up/RC Bottling Co., a division of the Dr. Pepper Snapple Group, is also a member of the company’s racing team.

Landes joined the group when it was called the Dickson Street Cycling Club and helped the team hook up with Snapple as a sponsor.

He approached some of the executives at the Dr. Pepper Snapple Group’s offices in Bentonville and asked if they would be interested in contributing to the cycling team. Not only were they interested in helping, he said, but they wanted to put their name on the team.

Now every time the Snapple team races, Landes brings the company’s flavored juices, teas and energy drinks along with him and distributes them to thirsty cyclists.

With races in Kansas City, St. Louis and Tulsa, Landes said the brand gets a lot of exposure with its target audience.

Since Snapple introduced its line of all natural drinks in 2008, the cycling community is a natural fit for promoting the products, he said.

Cycling has also been a good fit for Tyson Foods, which has sponsored a local racing team for the past 15 years.

Bruce Dunn, president of the Tyson racing team, also known as the Fayetteville Wheelmen, said the company’s financial support goes toward the purchase of uniforms as well as the team’s junior development and racing program for aspiring young riders.

Dunn said the team’s annual budget is about $25,000 with support coming from several sponsors in addition to Tyson, including Crossland Construction Co., J.B. Hunt Transport Services Inc. and Airways Freight Inc.

With about 30 to 40 riders attending 500 races per year, the amount of exposure for the cost is a good deal for the sponsor.

Dunn said a study a few years ago found that cycling, compared to other sports such as auto racing and soccer, was the least expensive sport to sponsor in relation to the amount of impressions, or number of times anyone reads, sees, or hears the sponsor’s name in the media.

Tyson has increased its funding for the team over the years as the team has become a mainstay in the Northwest Arkansas community, Dunn said. The company also sees the benefit of being associated with the healthy lifestyle that cycling promotes.

“And of course it doesn’t hurt that Lance Armstrong has really taken cycling from being a fringe sport to a mainstream sport,” Dunn said.