McDonald's (NYSE: MCD ) once again is a top sponsor of the Olympic Games. But
not everyone is lovin' it. On Thursday, McDonald's announced it would
continue its sponsorship through 2020, a deal estimated around $100 million per
four years, or for every pair (winter and summer) of Olympic Games. In addition
to its role in this year's Games in London, McDonald's now will gain
exposure in Sochi, Russia (2014), Rio de Janeiro, Brazil (2016) and Pyeongchang,
South Korea (2018). The 2020 Summer Games location has yet to be determined.
McDonald's also uses the Olympics as a primary part of its advertising
initiatives each year in the U.S. In a statement, McDonald's President and COO
Don Thompson said, "In keeping with McDonalds ongoing commitment to childrens
well-being, we will continue to communicate with kids about the importance of
balanced eating and active lifestyles through our partnership with the Games."
However, it's the topic of health that's landing McDonald's in hot water.
For years, various organizations have protested McDonald's sponsorship of the
Olympic Games on the basis of hypocrisy many are galled by the notion that a
restaurant known for flipping fatty burgers and greasy fries is joined at the
hip with one of the foremost showcases of athleticism and fitness. Numerous
protests already are planned for the 2012 Games. A former Olympian is
particularly outraged at one of the 2012 initiatives for London. McDonald's
will build its largest location ever a 30,000-square-meter, two-story behemoth
capable of seating 1,500 customers in the Olympic Park. 2004 boxing silver
medalist Amir Khan has criticized organizers, telling the Daily Mail , "It is
clearly sending the wrong signal to kids and young people. If we want them to be
healthy and educate them to eat healthily, we need to think about approaching
them in a different way, especially around sport." Also, McDonald's position
as the exclusive "meal brand" of the games has drawn much ire across Britain
for putting an American face on the food. Other chains must remove their labels
and/or change packaging on food sold throughout several Olympic sites, according
to The Guardian , meaning the country's mix of British, Indian and other
ethnic fare will go mostly unnoticed. Coca-Cola (NYSE: KO ) has a similar
exclusivity deal with the Games as the sole provider of non-alcoholic drinks.
However, spectators will be able to bring their own drinks into the various
Olympic venues. McDonald's isn't alone in drawing ire as an Olympic sponsor.
In December, the Indian Olympic Association executive board planned to protest
Dow Chemical 's (NYSE: DOW ) sponsorship of the Games. Dow Chemical in 2001
bought Union Carbide India Limited, which owned a pesticide plant in Bhopal,
India, that leaked toxins and killed thousands in subsequent years. While Dow
had no direct connection to the incident, protestors have decried the mere link
between the two companies. Kyle Woodley, InvestorPlace Assistant Editor
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