Iconic 1980s chocolate bar brand now worth £1.7BILLION to be new sponsor of F1 in groundbreaking deal

FORMULA ONE have announced a stunning sponsorship deal with iconic chocolate bar brand KitKat.

The multi-year partnership will begin in 2025 to mark the 90th anniversary of KitKat and the 75th anniversary of F1.

PAF1 have agreed a global brand deal with KitKat[/caption]

ReutersThe deal will run from 2025 to 2028[/caption]

It is understood the deal will see trackside advertising for the Nestle-owned product start in Mexico and Brazil before expanding throughout the world in 2026.

According to Reuters, the goal of the deal, which will run until 2028, is for KitKat to expand its appeal and global reach to shoppers under 30 years old.

A statement from Chris O’Donnell, KitKat’s global category leader, said: “(The deal is) a key part of our strategy to move from what’s a very local model today, very fragmented.”

While O’Donnell did not disclose the monetary value of the deal, he added: “We’re now back to pre-COVID levels of investment (in marketing in KitKat).

“That’s a significant change, and we anticipate to keep investing behind the brands.”

The brand’s budget has risen by 20 per cent this year and is said to be worth more than £1.7billion ($2.3bn).

On the deal, Emily Prazer, Chief Commercial Officer at F1, said: “We’re delighted to have such a globally recognised and fun brand as KitKat joining us as a partner.

“They’re universally loved, and we can’t wait to see the fantastic experiences they’ll be bringing to our fans at the track and the new audiences they’ll introduce to the sport.”

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Nestle‘s Bernard Meunier, Head of Strategic Business Units and Marketing and Sales said: “F1 is a global phenomenon with a rapidly growing, diverse fanbase, especially among younger audiences.

“With its global reach and packed schedule, F1 offers KitKat the perfect platform to remind everyone to make time for a break.

“We’re excited to bring our signature sense of fun to this thrilling sport and to create memorable experiences for fans around the world.”

A statement on KitKat’s website added: “This strategic partnership will feature interactive on-the-ground experiences at Grand Prix, trackside branding, special-edition F1 products and playful, humorous digital content amongst other exciting Break-centric initiatives, offering a fun and surprising contrast to the thrill of each race day and uniting two passionate global fanbases.”

As part of the sponsorship agreement, Nestle will give away hundreds of race tickets.

The deal marks a major strategy shift for Nestle.

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The 160-year-old company typically strikes deals on a country-by-country basis, rather than one global brand deal.

Last month F1, who are owned by Liberty Media, reached a 10-year deal with French luxury giant LVMH covering Louis Vuitton, Moet Hennessy and TAG Heuer brands.

The motorsport also has a global beer sponsorship deal with Heineken that has been in place since 2016, while there is also a regional deal in place in Latin America with McDonalds.

F1 alone is valued at around £13.8bn, according to Forbes, while owners Liberty Media are worth £16.8bn.

This is more than Kroenke Sports & Entertainment, who own Arsenal, the Denver Nuggets and the Colorado Rapids and are valued at almost £9.7bn.

At the end of the year, Liberty Media will also become the main shareholder for MotoGP after striking a £3.6bn deal in April of this year.