Got Sweat?
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In August 1965 the assistant coach of the University of Florida’s football team met with Dr. Robert Cade. The purpose of the meeting? To find a solution for heat- related illnesses. During the 60’s, football players had died from heat exhaustion and Florida players lost between 10 – 15 pounds per game due to water loss.
When players drank water they often companied of stomach aches while those who ate salt tablets got leg cramps.
Dr. Cade sent a new associate Alex DeQuesada to research the composition of human sweat. Whether or not he did this with a straight face I do not know. Part of their research revealed that the body would absorb a glucose and salt drink faster than it would plain water. Thus began the research. What would be the perfect mix of ingredients to hydrate the body.
The human body is 65% water. If this fluid is not replaced after a heavy dose of perspiration…..the result is dehydration. Sweat is composed of water and the various salts needed to maintain the chemical and electrical systems. These elements are essential for nerve and muscle operations.
Ray Graves, head coach of Florida football agreed to let the doctors’ test their experiments... errrr.....I mean drinks on the freshman team. Two players per practice were used as subjects. After the games the doctors analyzed sweat, urine and blood samples. Sweat was serous business; and about to become very profitable.
In October 1965 Cade and DeQuesada were ready to test their new concoction. The ingredients were a mix of sodium, potassium, glucose and lemon juice…..to make it go down easy.
The test took place during a game between the Florida Gator’s freshman and varsity B squads. The freshman drank the concoction while the varsity B squad drank water.
The freshman won and claimed they had more energy. The doctors were on to something. The next day the varsity team faced the Louisiana State University Tigers so the doctors prepared 100 liters of their drink.
Although many of the Gators declined the “super-drink”, a few did drink it. Florida won 14 to 7. Although the doctors couldn’t prove a relationship between their drink and winning, you couldn’t prove there wasn’t.
By 1966 the good doctors had bigger plans for the concoction. Florida Gators paid $10 a gallon for the drink. That year was the best record in the school’s history. The doctors had their marketing story. But they also had competition.
Sports writers wrote about “Gatorade” and its benefits. And before the doctors new it, another company appeared marketing a similar drink.
One of the Gatorade doctors left Florida and got a job as a nephrologist for Indiana University. He met a physician with contacts at Stokely-Van Camp, a food processing company famous for pork & beans.
Stokely-Van Camp had a sports concoction of their own to help University of Tennessee. It was sauerkraut juice to help players replenish lost salts. When the company heard about Gatorade, they were interested.
The good doctors incorporated, created a nine-member trust with 101 equity shares. The name “Gatorade” was trademarked.
At first, the doctors wanted a $1 million fee for the drink. Stokely replied that the drink tasted foul….the target market was exclusively athletes…..and $1 million was way too much.
The two parties eventually came to an agreement. The doctors received $5,000, a five-cent a gallon royalty and a guaranteed $25,000 minimum payout. The doctors earned over $30 million over the next 40 years. Yes, that’s a lot of gallons.
There’s nothing like having a celebrity or athlete use your product. Nothing. In 1967 Stokely paid the NFL $25,000 to make Gatorade it's numero uno drink. It was also determined that each team would use a large cooler showing the Gatorade logo and matching cups. And you thought the entire NFL drank this stuff caused they loved the taste.
In 1983 Quaker Oats purchased Stokely-Van Camp. Gatorade was its major product.
Surprisingly, marketing suffered for the first several years. Quaker never used a professional athlete in any of the ads; but they had used athletes in other products. Quaker said research showed that the public would never believe an athlete would use the drink.
That changed in the early 90’s. After Michael Jordan’s endorsement deal with Coca –Coal expired; Quaker Oats bid $13.5 million dollars for a 10-year deal. Jordan became the drink’s exclusive spokesman.
Hence……….Be Like Mike
Gatorade has many things going for it aside from a special drink branded by Tiger Woods. They have super distribution.
Walk into any convenience store, 7-11, local bodega; you’ll find the flaming colors of Gatorade. This was a concerted strategy by the marketing team. You won’t find a large supermarket on every corner, but you may find a convenience store. Gatorade conducts educational seminars to help store owners improve their business.
By 1999, convenience stores represented over a $1 billion in sports drink sales. Because of powerful marketing, science and the fact that people truly believe Gatorade works, they never had to engage in a price war.
Last weekend I walked into a Target and there was a Gatorade vending machine right by the door. I’m sure most Target customers aren’t about to jump onto a football field and take on the New York Giants. But this drink is about as mass marketed as you can get. And lets face it……it doesn’t taste that good. But it's everywhere & does wonders.
Late December 2000, Pepsi purchased Quaker Oats in a $13.4 billion stock deal and now adds Gatorade to its portfolio. The product line includes the original, lo-cal, flavored fitness water and energy bars.
I’m not a big Gatorade drinker, but this stuff and it's electrolytes have gotten me over many a hangover. You really should try it.
This drink is testimonial to the fact that celebrity endorsements and good product placement will run circles around the competition.
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