Coca-Cola Extends Long-Standing Partnerships with NASCAR, International Speedway Corporation

Coke

Coca-Cola (KO) has extended partnerships with NASCAR and International Speedway Corporation (ISCA) through 2023, extending a 50-year association that has made the brand one of the “most recognized sponsors” in the sport. The integrated agreement means that KO will remain the “Official Soft Drink of NASCAR” and be the leading (non-alcoholic) pour of 21 NASCAR sanctioned race tracks (ISCA owns 12) for the 2018 season. In addition to pouring rights, KO’s immersive NASCAR marketing approach includes race entitlements (Coca-Cola 600, Coca-Cola 400) and the Coca-Cola Racing Family; a group of top drivers that make appearances and are featured in advertising, promotions and packaging.

Howie Long-Short: Back in early October, ISCA reported revenue for the quarter ending August 31st rose 2.2% (to $131.9 million), despite race attendance continuing to decline; with the hosting of non-traditional events, food, beverage & merchandise sales offsetting sagging ticket sales. The company has set 2017 revenue guidance at $660-$670 million; for comparison purposes, ISCA generated $661 million in 2016. The race track owner/manager will report 2017 full year earnings on January 25th.

Fan Marino: The Coca-Cola Racing Family includes 3 of the Top 11 in the Monster Energy NASCAR Cup Series standings; Denny Hamlin (6), Kyle Larson (8) and Austin Dillon (11). Prior to last season’s playoffs, I had a chance to sit down with Austin Dillon (a market buff) and talk to him about the personal stock portfolio he manages (i.e. not his retirement account). I asked him, if there was a trade you could take back; what would it be?

Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $344). I had around 200 shares.

Fun Fact: Dillon played for the South-East team in the 2002 Little League World Series.

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EXCLUSIVE: NASCAR’S AUSTIN DILLON DISCUSSES HIS CURRENT HOLDINGS AND BIGGEST TRADE REGRET

The Monster Energy (MNST) NASCAR Cup Series playoffs continued Sunday at New Hampshire Motor Speedway. Kyle Busch won the ISM Connect 300, advancing in to the round of 12 in the process. JWS got the exclusive opportunity to sit down with Austin Dillon, currently sitting in 13th place, to discuss his corporate sponsorship partners, investment portfolio and a decision to sell (an equity) that he regrets. Austin finished 19th in Sunday’s race after being involved in an 8-car wreck.

How does your passion for sports drive the corporate sponsorship partners you have?

Austin Dillon: I’m a huge outdoorsman, so I started out with Bass Pro Shops (CAB). That was an easy tie-in for me with my hunting and fishing background. From a racing standpoint, I used to be with AdvoCare and their Rehydrate product. I enjoyed using the product. We won a championship with them. I’m now with Dow Chemical Company (DWDP) and their scientists and engineers directly make an impact on our car through technological advances. 

Do you personally invest in your corporate sponsors?

Austin Dillon: Every sponsor that I have, that is traded (CAB, DWDP, GIS), I have stock in. It works well. You can build together. When you are running well, they are doing well. It’s cool how that works.

You mentioned that you do a little bit of trading for fun.  Can you share a few of your holdings?

Austin Dillon: Caterpillar (CAT), I had them as one of our partners for a while; my Grandpa did well on Caterpillar. Builders First Source (BLDR) has been doing well. Nintendo (NTDOY). I was playing Pokeman like crazy when it came out and was like I should get some stock, they’ve been doing well. 

Can you give us one trade you’d like to have back?

Austin Dillon: I messed up on Tesla (TSLA), badly. I had it at $44. One of my engineers was like ‘it’s not going anywhere’ and I sold it (currently at $351). I had around 200 shares.

Howie Long-Short: Dow Chemical Corporation and DuPont Co., the 2 largest American chemical makers, completed a $130 billion merger in late August. As of September 1st, the company began to trade under the symbol DWDP. DWDP is expected to split into 3 separate companies (agriculture, specialty products and materials).

Fan Marino: Austin Dillon played for the South-East team in the 2002 Little League World Series. South East made the 2017 United States Championships and Austin was given opportunity to give the kids a pep-talk before the game. South-East ended up losing a heartbreaker to South-West, 6-5. Nolan Ryan delivered the South-West team’s pregame speech.