8-K: MDWerks' Two Trees Beverages Announces Co-Sponsorship with Team Combat League

MDWerks' subsidiary, Two Trees Beverages, has entered a multi-year co-sponsorship agreement with Team Combat League to promote its spirits brands.

Summary

• MDWerks, Inc. announced that its subsidiary, Two Trees Beverages, has agreed to a multi-year co-sponsorship with Team Combat League (TCL).
• The agreement will see Two Trees and Tim Smith Spirits brands promoted on TCL telecasts through logo placement and the sale of their whiskeys at TCL events.
• TCL is a franchise format boxing league that launched in March 2023 and will have 12 teams participating in the 2024 season, up from 6 in 2023.
• MDWerks views this co-sponsorship as an opportunity to expand brand exposure and introduce its technology platform to potential partners.
• The co-sponsorship is set to begin with TCL's second season in March 2024.

Sentiment

Score: 7

Explanation: The document conveys a positive outlook with the new co-sponsorship agreement, indicating a strategic move for growth. However, it also includes standard cautionary language about forward-looking statements, which tempers the overall sentiment.

Positives

• The co-sponsorship provides a platform for MDWerks to promote its spirits brands to a wider audience.
• The agreement aligns MDWerks with a rapidly growing sports league, potentially increasing brand visibility.
• The partnership allows MDWerks to showcase its technology platform to potential new business partners.
• TCL's growth from 6 to 12 teams indicates a growing audience for the co-sponsorship.

Risks

• The success of the co-sponsorship depends on the continued growth and popularity of Team Combat League.
• The document contains forward-looking statements which are subject to risks and uncertainties.
• The company's future performance may differ materially from the expectations expressed in the document.

Future Outlook

The company anticipates a long and mutually beneficial relationship with Team Combat League and expects the co-sponsorship to increase brand exposure and introduce its technology platform to potential partners.

Management Comments

• Steven Laker, CEO of MDWerks, stated that Two Trees is delighted to co-sponsor Team Combat League.
• Steven Laker believes the alignment provides exposure to both Two Trees and Tim Smith Spirits branded products.
• Dewey Cooper, President of TCL, stated that Team Combat League is fortunate to gain an excellent co-sponsor like Two Trees Beverages.

Industry Context

This announcement reflects a trend of companies using sports sponsorships to increase brand awareness and reach new audiences. The partnership between a spirits company and a sports league is not uncommon, as it allows for targeted marketing to a specific demographic.

Comparison to Industry Standards

• Many beverage companies, such as Anheuser-Busch InBev and Molson Coors, have extensive sports sponsorship portfolios, often including major leagues like the NFL and MLB.
• Smaller companies often seek partnerships with emerging leagues or teams to gain exposure at a lower cost, similar to MDWerks' approach with TCL.
• The use of logo placement and product sales at events is a standard practice in sports sponsorships, aligning with industry norms.

Stakeholder Impact

• Shareholders may view the co-sponsorship positively as a growth initiative.
• Employees of Two Trees Beverages may benefit from increased brand awareness and potential sales growth.
• Customers of Two Trees and Tim Smith Spirits may see increased brand visibility.
• Team Combat League will benefit from the financial support and brand association with Two Trees.

Next Steps

• Two Trees Beverages will begin its co-sponsorship of Team Combat League in March 2024.
• MDWerks will monitor the impact of the co-sponsorship on brand awareness and sales.

Key Dates

Keywords

co-sponsorship, Team Combat League, Two Trees Beverages, Tim Smith Spirits, sports marketing, brand exposure, spirits industry, MDWerks, sustainable technology