Back in 2017, Nature’s Bakery, a major soft-baked snacks company, terminated its three-year contract with Stewart-Haas Racing earlier than expected. And that is what forced the NASCAR team to file a lawsuit against the Nevada-based company. But what was it all about?
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Initially, it was agreed that Nature’s Bakery would sponsor up to 20 Cup Series races in 2017. However, just in the second year of its deal with SHR, the brand felt like they weren’t getting the ROI that it had expected from sponsoring the then-SHR driver and social media sensation, Danica Patrick. On that note, there were a couple of complaints that they had against the 2008 Indy Japan 300 winner.
Patrick often refused to promote the products made by the company that was funding her ride. Moreover, she seemed to have endorsed a protein bar manufactured by one of Nature’s Bakery’s competitors, Six Star. According to a response from the food company, “It was as if Michael Jordan decided to wear Adidas while being paid by Nike.”
An annual investment of $15.2 million in return for at least four times that amount was what Nature’s Bakery had settled for. Needless to say, their hopes died early. And they did not pull any punches, blaming Patrick for it.
They said, “SHR could not control Patrick’s performance, particularly as to her social media, which Patrick often refused to use to promote Nature’s Bakery. Nor could SHR guarantee exclusivity for Nature’s Bakery’s brand in category of on-the-go foods because Patrick was already endorsing a protein bar made by one of Nature’s Bakery’s competitors…”
How was the beef involving Danica Patrick and SHR versus Nature’s Bakery settled?
Nature’s Bakery agreed to sponsor Patrick and her teammate Clint Bowyer in four races that season, two for each. This sponsorship was a part of the settlement between SHR and Nature’s Bakery.
The then-SHR president Brett Frood said, “It’s gratifying to see a difficult situation get resolved in a professional manner that suits all parties. Together, we worked diligently to find an equitable solution to our collective challenges.”
A deal is a deal. And when Nature’s Bakery chose to sever its deal with SHR, repercussions were bound to happen. Tony Stewart’s Cup team initially charged a lawsuit worth $31 million against the snack company for the money owed for the remaining two seasons in the contract, besides interest. However, it was later settled between them. Despite the turmoil, the way both parties handled the situation was quite commendable.
