SMG Grows UK F&B Portfolio

Tuesday, February 10, 2015

Earlier this month, SMG announced that it acquired CGC Events Limited (CGC) — a catering company based in Yorkshire, England — to expand its hospitality presence in Europe. The company will pay an undisclosed amount over a number of years.

The acquisition came as somewhat of a surprise.

“We weren’t for sale, but SMG approached us and was willing to work in partnership with us on partnership and catering,” said Darran Coulson, CGC Managing Director. “When we started looking at it, it was clear that it was more beneficial for SMG to take us on.”

CGC benefits from having more capital to go after contracts and expand to more than a predominately summer-based business, while SMG will benefit from the established brand that CGC has grown.

The company has been around for nearly a century. CGC has an annual turnover of about $30 million with 200 full-time staff and more than 1,000 employees during peak events. It is the exclusive caterer at eight racecourses including York Racecourse, as well as providing matchday catering for five soccer and rugby facilities and custom catering services for individual events.

Due to its reputation, CGC will retain its name and branding as opposed to coming under the Savor name, which is SMG’s food and beverage division.

“People recognize and have a relationship with the brand name,” said SMG Europe Exec.VP John Sharkey. By acquiring a European food and beverage company, it will allow quick access to supply and inventory. “It gives us an opportunity to get to market more quickly,” Sharkey added.

CGC will be able to leverage the size, reputation and financial resources of SMG, with the combined European group reporting total revenues of more than $250 million under management and a turnover of about $68 million.

Some larger contracts where we could have been successful, we didn’t get because we’re not big enough — we’re big enough to do the job, but what they want is a certain financial ability and they want to see a multinational business,” said Coulson. “All of a sudden we’ll be able to get a longer term and be able to invest more.”

Acquisition discussions have been going on for about 16 months.  It took time to figure out the company’s cultures and how they would fit together.

“Culturally, we think that both companies focus on the customer, the experience and innovation,” said SMG Exec.VP Maureen Ginty. “That’s what makes any kind of merger really work well — when you put your customers first and have an emphasis on the employees.”

Business at CGC will mostly continue as usual, with current staff continuing to operate the catering company, led by Coulson, who will take on the title of Sr. VP of Operations.

Both companies plan to learn from each other.

“There’s one way of doing things well and that’s the best way; it’s a sharing experience both for CGC and SMG,” said Sharkey. “We’re not so proud as to think that one particular party has the monopoly in doing this well.”

Though previously seen as more of a regional company, CGC is open for business and conversation across the whole of the United Kingdom.

This isn’t the first time that SMG has expanded its food and beverage operations through acquisition. As recently as June, SMG acquired Premier Food Services in San Diego.

“We’re open internationally for all sorts of opportunities and we’ve been blessed with a lot of success and supportive owners,” said Ginty. “If we see things that make sense, we’re going to take a hard look at them.”

Interviewed for this story: Darran Coulson, Maureen Ginty and John Sharkey, (610) 729-7900.

SMG Completes Deal to Acquire CGC Events Limited

For immediate release

West Conshohocken, PA (February 4, 2015) - SMG, the world leader in facility management and a leading provider of food and beverage services, announced today that it has acquired CGC Events Limited (“CGC”). Headquartered in Yorkshire, England, CGC provides catering services for clients in a wide range of industries, including horse racing tracks, sports facilities, museums, and civic and cultural venues. The acquisition will enable SMG’s European division, SMG Europe, to broaden their base of food service customers to include some of the preeminent venues and businesses in the North of England.

“The addition of CGC’s business and the outstanding quality of their customer base provides us with an opportunity to share our expertise and to combine our resources to continue CGC’s track record of providing high quality service,” said SMG’s President & CEO, Wes Westley. CGC’s management team, led by Managing Director Darran Coulson, will continue to operate the CGC business under SMG’s ownership.

Mr. Coulson said “SMG Europe has an excellent reputation as a provider of venue management, and food and beverage services, at its venues throughout the United Kingdom. We believe putting CGC and SMG together is a perfect match for our clients, business partners and employees. I look forward to working alongside the SMG/SAVOR management team as we strive to maintain our excellent service to our customers, and seek to grow our business in the U.K.”

The CGC acquisition will strengthen SMG Europe/SAVOR’s position as an innovative, high-quality provider of food service in the United Kingdom. CGC’s clients include iconic horse racing tracks as well as stadia and heritage venues and many other prestigious shows and events.

SMG Europe and SAVOR currently manage food and beverage operations at all of the SMG Europe-operated venues in the U.K., including the Manchester Arena and Bridgewater Hall in Manchester, First Direct Arena in Leeds, Metro Radio Arena in Newcastle, Odyssey Arena in Belfast, the Barbican in York, the Baths Hall and Plowright Theatre in Scunthorpe, and Playhouse Whitley Bay in Tyne and Wear.

Tom Marchetto, a highly respected hospitality executive, joins SMG as Senior Vice President, to accelerate the growth of the company’s foodservice division

West Conshohocken, PA (February 2, 2015) - Tom Marchetto, one of the most respected industry veterans in the contract management business, is joining SMG, the world leader in venue management and facility services, as Senior Vice President, Strategic Marketing, to expand the company’s food and beverage portfolio, specializing in concessions, catering and banqueting, and premium services for convention centers, stadiums and arenas, theater and performing arts centers; and newly defined markets, both domestically and internationally.

In his new role, Marchetto will report directly to SMG’s President and Chief Executive Officer, Wes Westley, and will be involved in setting strategic direction, business development planning, synergistic branding across a multiplicity of business units, and client relationship management.

“Tom will work closely with SMG’s senior management team, in particular SAVOR, to accelerate our current growth, and identify new opportunities through an innovative approach utilizing all of SMG’s resources,” said Westley. 

“Tom provides dynamic leadership and extensive industry knowledge, and his unique ability to grow organizations and build client relationships, makes him the right fit at the right time for SMG,” added Westley.    “I know the professionalism and value that Tom brings, and I’m excited to have him as part of our team.”

Prior to joining SMG, Marchetto held a senior marketing advisory position at Ovations Food Services, a subsidiary of Comcast-Spectacor, from 2006 to 2014. He was instrumental in the implementation of a business development strategy that resulted in Ovations more than quadrupling its revenues, and becoming an industry growth leader, while doubling the number of its client roster accounts.

Formerly, Marchetto spent 30 years with ARAMARK, a world leader in managed services, where he held several senior level executive positions.  As President of the Convention and Tourism Services (1999-2003) division, he had nationwide responsibility for a broad range of services for convention centers, national parks and cultural attractions, including some of the largest public facilities and park resorts in the United States. Under his leadership, the company experienced unprecedented growth in its convention center sector, advancing from low market penetration to the #1 position in the hospitality industry.

Marchetto also served as Area President for ARAMARK’s Sports and Entertainment Group (1995-1999), where he was responsible for stadiums, arenas and amphitheaters.  His vision and operational focus contributed to double digit sales and earnings growth, and high customer satisfaction and fan experience levels, which resulted in record client retention rates. Earlier in his career, he was Vice President, Convention Center Services (1990-1995); and Regional Vice President, Conference Center Services (1987-1989).

Marchetto is a graduate of the Pennsylvania State University, with a degree in Food Service and Housing Administration. He continued his training and education through various executive leadership programs including the University of Florida. He and his wife, Lois, reside in St. Simons Island, GA.

Pensacola Bay Center Celebrates 30 Years with Brad Paisley

(Pensacola, Fla.) January 23, 2015—2015 marks the Pensacola Bay Center’s 30th anniversary of providing first class entertainment in the Pensacola Bay area through concerts, trade shows, meetings, family shows and sporting events. It all started when KISS performed on January 21, 1985 with a sold out show, and the Bay Center has been rockin' ever since.

The Pensacola Bay Center has been a staple in improving the quality of life for 30 years with such huge acts as Elton John, Janet Jackson, David Bowie, Jimmy Buffett, Kid Rock, George Strait, David

Bowie and hundreds more.

In honor of Brad Paisley playing at the arena tonight at 7:30pm, the Bay Center will kick off the 30th anniversary celebration an hour prior to the show.  As country fans enter the building, they will be greeted by mini-­‐cheesecakes courtesy of Szotski's Cheesecakes and mini cupcakes provided by Smallcakes, J's Pastry Shop and Publix Bakery. Fans will also be able to light the night up with fun sized glow sticks while singing and dancing the night away. 

To make this day even more memorable, the Board of County Commissioners of Escambia County have officially proclaimed January 23, 2015, Brad Paisley Day in Pensacola.  Pensacola Bay Center SMG general manager, Cyndee Pennington was also recognized by the Board of County Commissioners for her 30 years of service at the venue. 

Throughout 2015, more activities and events will be planned in honor of Pensacola Bay Center's 30th anniversary. To stay updated with all the happenings, sign up for the Bay Centers newsletter and follow on Facebook and Twitter.

INTRUST BANK ARENA ANNOUNCES PLANS TO GIVE FANS 5-STAR FAN EXPERIENCES IN 2015

Wichita, KS (January 21, 2015) – This year, INTRUST Bank Arena celebrates five years of creating memories and providing world-class entertainment to fans in downtown Wichita. To celebrate the 5th Anniversary, INTRUST Bank Arena has announced plans to give fans 5-star fan experiences in 2015 at each of their 5th Anniversary Concert Series shows. 

As previously announced, INTRUST Bank Arena will put on a 5th Anniversary Concert Series throughout 2015 to commemorate the milestone. As part of the concert series, INTRUST Bank Arena will be giving fans the chance to win a 5-Star Fan Experience for each show in the series. The 5-Star Fan Experiences will include tickets to the concert, round-trip limousine transportation, dinner in the Arena’s Cox Lounge, a 1-night hotel stay and a commemorative concert poster. Contests will begin approximately three weeks prior to each concert series show and will be hosted on the Arena’s social media pages. Three concerts in the series have been announced to date, including Bob Seger (Feb. 17), Fleetwood Mac (Mar. 31) and Foo Fighters (Sept. 30). Fans can expect additional concert series announcements throughout the year. 

“We’re in the business of making memories, and when our marketing team got together to brainstorm ways to celebrate our 5th anniversary, we knew we had to come up with something big,” said SMG Director of Sales & Marketing, Christine Pileckas. “The ‘5-Star Fan Experiences’ we’ve put together will not only leave fans with incredible memories, but it will give them the chance to experience our events in a way they might never have been able to experience them otherwise.” 

Earlier this month, INTRUST Bank Arena launched a completely new, redesigned website to kick off the fifth anniversary. The newly redesigned website, www.intrustbankarena.com, is sleek, easy to navigate, and offers a full multimedia experience. The site was developed by Howerton+White, an interactive marketing agency in Wichita, Kan. In addition, INTRUST Bank Arena has designed commemorative ticket stock and commemorative souvenir cups for the fifth anniversary. Th

e souvenir cups will be available for purchase at all arena concession stands during events. This week, the arena will also be installing fifth anniversary themed banners on street poles in the arena neighborhood.

To stay connected with INTRUST Bank Arena and be the first to know when a 5-Star Fan Experience promotion is kicking off, fans are encouraged to sign-up for the Arena’s e-news or follow them on Facebook and Twitter.

Cars, Cobo kick-start 2015 with big buzz for Detroit

Wes Westley, CEO of the company that runs Cobo Center and 240 venues worldwide, planned to visit Detroit in March to check out operations.

But last week he abruptly changed his travel schedule after he saw social media traffic "blowing up" with news and chatter from the North American International Auto Show (NAIAS).

"I had to get out there to see the action," Westley, who heads Philadelphia-based SMG, said in a phone interview Friday, "so I came in for an overnight Wednesday and Thursday. I was blown away by the video boards, the cars, the excitement in the city and the industry. It's really gratifying to see."

That strong reaction and positive vibe overall from the Detroit show this past week positions 2015 as the most promising year for Detroit and its signature industry since at least the go-go 1990s.

The 2015 show's economic impact on the region will top $400 million for the first time since 2008, economist David Sowerby said. Friday's Charity Preview, with tickets at $400 apiece, raised more than $5 million, boosting the total donations for children's charities to more than $100 million since the Detroit Auto Dealers Association began the black-tie gala in 1976.

Cobo's $279-million makeover has opened up much more space for banquets and parties, both before and after the Charity Preview.

And despite the nonstop construction activities since the Cobo renovations began in 2010, convention bookings have nearly tripled, said Thom Connors, Cobo general manager and SMG regional vice president. The final stages of the renovation, including an east facade glass canopy, video screen above the main entrance and upgrades of meeting rooms and concourses, are slated for completion by June.

"In my 40-year career, I have never seen the amount of change that has happened in such a compressed period of time to improve the stature, marketability and appeal of a convention destination as has occurred in Detroit," Connors said.

Highlights of a rebirth

What better way to kick off the rebirth of the much-maligned Motor City on the heels of its exit from Chapter 9 bankruptcy than with:

• Cobo Center looking better than it has in forever, welcoming 5,025 journalists from 60 nations. 
• The auto industry rejuvenated and posting strong sales and profits as consumers enjoy plunging gasoline prices and low-interest loans.
• The auto show floor full of glamor, power and some surprises, such as Ford's GT supercar and Chevrolet's Bolt concept combining 200-mile range and affordable price point in a next-generation electric car.

Positive attitude

By any measure, it has been a robust week for Detroit.

Macomb County Executive Mark Hackel said the transformation of Cobo and downtown Detroit in recent years extends beyond the physical construction.

"People are more inviting; the staff here is more engaging," Hackel said at Cobo last week. "And you can feel it especially around the downtown area."

A few years ago with the industry in the doldrums, some major foreign car companies skipped the Detroit show or scaled back their presence. Not so anymore.

Zetsche, the Daimler CEO who ran Chrysler in Auburn Hills from 2000 to 2005, said last week that "if you are in the auto world, you must be in Detroit to start the new year."

Urmson, Google's head of self-driving cars, said the brainpower and experience of metro Detroit are essential elements of future car development. Google's self-driving car team is based mainly in Silicon Valley, he said, but vehicle prototypes are being built in Livonia.

Detroit has been mass-producing vehicles for so long, many people take its know-how for granted.

"You forget just how complicated that is," he said in a Free Press interview last week, "and how much engineering effort, thought and design it takes, how smart the pe
ople are that are able to pull this off ... at scale, every day. I think anyone who looks at Silicon Valley as the only place that innovation happens is dead wrong."

Some challenges ahead

To be sure, Detroit and its auto industry still face many challenges.

Mexico and the American South want auto jobs and plants, too, while Silicon Valley and other spots want a share of action in future automotive technology and mobility innovations.

UAW workers want a raise and changes in the two-tier wage structure, with 2015 a key contract bargaining year now that the auto industry bailouts are history.

That said, though, it's all right to embrace the enthusiasm and excitement that put Detroit in the national spotlight for a frigid January week.

Last, with something for everyone at NAIAS as the public jams the show floor this week — powerful supercars from Ford and Acura, a Rebel Ram from FCA, an electric Bolt and a 640-horsepower CTS-V from Cadillac — one wonders what the ghost of Alfred Sloan might be thinking if he were floating around the 2015 show.

It was 90 years ago, in his 1924 annual report to GM shareholders, that the legendary CEO explained his famous market segment strategy of "a car for every purse and purpose."

You think Alfred had Tesla, Google and 3D printed cars in his mind's eye?

From the Detroit Free Press.

2014 – A Banner Year of Community Involvement for SMG Managed Arenas & Stadiums

West Conshohocken, PA (January 14, 2014) - SMG-managed arenas and stadiums recorded a banner year of community involvement projects and initiatives throughout the United States in 2014.  Over 1,000 SMG employees in venues across the country donated more than  12,500 community service hours, made non-profit cash donations of over $400,000, donated more than $2 million in tickets to charities and non-profits in the local communities they serve, donated more than $1 million in venue rentals, and created over 35 separate food and toy drives.

“In addition to managing venues on a world-class level, our employees are also involved in the communities where they live.  Improving the quality of life for those in the cities we serve is of utmost importance,” said Doug Thornton, Executive Vice President of SMG Arenas & Stadiums.   “I celebrate the community service of our employees,” added Thornton.

Some highlights of the projects SMG employees created and participated in their local communities:

• Chef Devon with SMG Savor/BOK Center in Tulsa Oklahoma coordinated “Chef Aid” to raise money for tornado victims in Oklahoma
• In Topeka Kansas, SMG employees participated in the Lifehouse Child Advocacy Book Drive
• At the Dunkin Donuts Center, SMG employees feed over 2,000 economically challenged citizens for the Holidays 
• In Lincoln Nebraska, SMG employees participated in 2014 Hunger Rally packing some 40,000 meals benefitting the hungry in SE Nebraska
• SMG employees in Stockton California partnered with several community organizations to collect 6,000 coats, blankets, and socks that were donated  as part of “Stockton Cares”
• In Peoria Illinois SMG employees at the Peoria Civic Center Cultural Diversity Committee hosted the 2014 Noche De Fiesta Festival which raised much needed funds for the Peoria Hispanic Organization
• SMG employees at the Intrust Bank Arena in Wichita Kansas participated for the fourth consecutive year in Habitat for Humanity’s Community Challenge Build.  In addition employees volunteered at the Kansas Food Bank packing backpacks for the Food 4 Kids program

Throughout the year in cities that SMG serves employees donate their time, talent, and treasures to many non-profits including those such as:  Ronald McDonald House, Make A Wish Foundation, Big Brothers and Big Sisters, Salvation Army, March of Dimes, Habitat for Humanity, United Way, Red Cross, and many others.

“When our venues donate millions of dollars of tickets annually to events in their communities the experience is sometimes life changing for those that are economically challenged,” said Jim McCue, Senior VP of Entertainment for SMG.