Sponsorship deal to reinvigorate flagging Reebok
In an attempt to reinvigorate Reebok, owner Adidas has signed a worldwide sponsorship deal for CrossFit.
The brand that helped introduce step aerobics to gyms worldwide in the 1990s has posted declining profits for three of the years since its acquisition by Adidas in 2006 for $3.7 billion.
Reebok managed a brief upturn due to their Easytone shoes that are designed to help tone and strengthen leg and gluteus muscles. However, as John Birnsteel, head of strategy at FutureBrand comments,
Reebok has forecast another drop in revenue this year.
Bad news for Reebok
Reebok was accused by the U.S. Federal Trade Commission of misleading health claims about its toning shoes. Despite disagreeing with the allegations, Reebok conceded to pay a $25 million settlement for consumer refunds. Then in April the brand lost out on a contract to provide outfits to the U.S. National Football League, costing Adidas a figure of approximately $250 million a year in lost revenue. Most recently, Reebok is working in cooperation with the Indian government in connection with a fraud allegation concerning two executives.
Hoping the CrossFit worldwide sponsorship deal will make up for the companies losses, Reebok have designed a routine and clothing range securing their profile in 70 gyms across 30 countries. Chris Froio, Reebok’s global head of fitness commented,