The Coca-Cola Company has teamed up with Chinese dairy giant China Mengniu Dairy to sponsor the upcoming 2032 Olympics. The International Olympic Committee announced the mega partnership this week.
The US-based beverage company signed a deal with the Chinese firm that will include joint advertising projects that will run for 12 years up to 2032.
The advertising partnership will include all Olympic events leading up to 2032, namely two Winter Olympic events and four Summer Olympic events. Marketing rights for Youth Olympics and Paralympic Games are also covered in the newly signed advertising and sponsorship contract.
The International Olympic Committee declined on to reveal the actual value of the deal with both companies. However, reports have estimated that the deal could be worth around $3 billion. Both companies also declined to comment when asked about the exact value of the partnership.
Coca-Cola has been one of the biggest sponsors of the Olympics games. The company has been associated with the event since 1928. The beverage company currently has a sponsorship deal with the Olympics but the contract officially ends in 2020.
The next major event is the upcoming Summer Olympics, which will be held in Tokyo in 2020. This will be followed by the Winter Games, which will be held in Beijing in 2022.
Other companies that have become major sponsors for the event include Intel, Toyota, Panasonic, and Samsung. Another Chinese firm that had recently become part of the event's major sponsors is e-commerce giant Alibaba.
Coca-Cola's partner in its new sponsorship deal is currently China's largest dairy products producer. Mengniu reportedly has over 40 processing facilities across China, Indonesia, and New Zealand. The company's facilities are capable of producing over 9 million tons of dairy products each year. Mengniu is also one of the biggest exporters of dairy to countries such as Australia and Canada.
The company's participation in the international event has been seen as its latest strategy in expanding its international business.
According to the firm's CEO, Jeffrey Lu, the partnership with Coca-Cola should become the catalyst for Mengniu to be recognized around the world. The company sees the deal as a vital step in its international expansion efforts.
The partnership between both companies comes at a very vulnerable time for international collaborations, especially given the growing trade tensions between China and the United States.
Both countries are currently locked in a bitter trade dispute that has resulted in the implementation of increased tariffs. The Olympics Committee sees the partnership as a step in the right direction and an example of how the event's unifying powers.