The decision by Kraft Heinz not to get into a bidding war with Acrisure for the naming rights to the Pittsburgh Steelers’ stadium could signal more than a change in signage on the North Shore, several business and marketing onlookers said Monday.
“I think it’s kind of remarkable that it’s still Heinz Field because Heinz has not had ketchup production here — what it’s known for in particular — for over 20 years now,” said Chris Briem, a regional economist based at the University of Pittsburgh’s Center for Social and Urban Research. “So the naming of the stadium is a legacy of Heinz in Pittsburgh that is now pretty much gone.”
Kraft Heinz said Monday it could not match an offer from Acrisure, a Michigan-based financial tech insurance firm, for the naming rights to the stadium. Terms of Acrisure’s 15-year deal were not disclosed. Heinz paid $57 million — a nod to its famous 57 varieties slogan — for a 20-year deal when the facility opened in 2001. Kraft Heinz and the Steelers extended the pact for one year in January 2021.
“While we worked diligently with the Steelers for several months around a new naming rights deal, they found a new partner willing to pay significantly more than we could justify,” Kraft Heinz said in a statement.
The Heinz company became a source of pride for the Pittsburgh region after its humble beginnings in 1869 with H.J. Heinz selling horseradish, pickles and sauces in clear glass bottles. It grew exponentially and gained national and international prominence over the decades, from marketing its legendary ketchup in 1876 to introducing portable packets of their famous condiment in 1967. At one time the company occupied 17 buildings on the city’s North Shore.
In 2013, the company was obtained by billionaire Warren Buffet and his Berkshire Hathaway firm and 3G Capital for $23 billion. In 2015, the company merged with Chicago-based Kraft to form Kraft Heinz Co., one of the world’s largest food and beverage firms.
The legacy of Heinz in Pittsburgh seemingly took a hit with each passing development.
From a business standpoint, it makes perfect sense for Heinz to no longer have its name on the stadium, said Risa Kumazawa, an associate professor of economics in Duquesne University’s Palumbo Donahue School of Business.
“They are already a famous company. I don’t think they need the exposure,” Kumazawa said. “Deciding not to continue with the naming rights is not going to hurt their product in any way.”
The name change, however, could lead to a backlash from Steelers fans who identify strongly with a stadium named for a traditional hometown brand, said Vanitha Swaminathan, a professor of marketing at the University of Pittsburgh and the director and founder of the Katz Center for Branding.
“I think you’ll find a lot of Steelers fans who don’t embrace this change,” she said. “Extremely loyal fans don’t like these kinds of changes, and there could be some loss of equity for the Steelers if the backlash is significant.
“I’m completely shocked that Heinz Field is undergoing a name change,” Swaminathan added. “It’s a very, very big development for Pittsburgh and for the Steelers.”
More on Acrisure Stadium naming rights:
• Heinz Field no more: Steelers, Acrisure finalize deal for stadium naming rights
• Pittsburgh has plenty of places that have changed names
• Many Steelers fans underwhelmed by Heinz Field name change
• Editorial: Acrisure Stadium, you say? To Steelers fans, it’ll always be Heinz Field
• Never heard of Acrisure? Naming rights deal with Steelers stadium aims to change that
• Ben Roethlisberger sounds off on the Heinz Field name change
• No more ‘Highway to Heinz,’ but WPIAL plans to hold 4 football finals at Acrisure Stadium
Briem said he was surprised that another Pittsburgh company didn’t step up to lend its name to the stadium. But he admittedly had a hard time figuring out which company it might have been.
“The companies that might have done that in the past are all long gone,” he said. “Gulf is gone. Westinghouse, as we knew it, is gone. PNC already has the naming for one stadium. PPG obviously has the naming of another venue in town. So maybe there aren’t a lot of other Pittsburgh companies that would see the benefit from this type of investment in terms of really getting some national advertising out of it.”
Although Kraft’s headquarters is in Chicago, Heinz still maintains corporate offices in Downtown Pittsburgh. It said Monday that other partnerships with the Steelers are in the works.
“While our name will no longer be on the stadium, Heinz will remain a significant, long-term sponsor of the Steelers, and we’re excited to announce the details of our new partnership in the days ahead,” the company said in a prepared statement.
Briem remained skeptical.
“I would not be surprised that now that they’ve moved on from naming the stadium,” he said, “you might see (Heinz) acknowledge their center of gravity being more Chicago than here.”
