Success made in Seattle

In 1984, at the age of 16, the high school student, Jay Deutsch, began selling sweatshirts to football fans together with his childhood friend, Eric Bensussen. 40 years later the project of two school boys has become a globally operating promotional products agency. Bensussen, Deutsch & Associates (BDA) is not only the largest supplier of fan items and merchandise on the top American sport scene, its clientele also includes numerous big groups like Starbucks, Amazon, Boeing and Nike. In January 2024, BDA took over the German company, ipm Werbemittel GmbH. In an interview with eppi magazine, the founder and company owner, Deutsch, explained why BDA wants to grow on the European market, which advantages the global alignment has for the customers and how important promotional products are in the field of sport.

In January, BDA took over the German IPM Group. What was the reason for your decision to make IPM part of BDA Europe?

Jay Deutsch: One simple answer: Peter Beichel and Tino Gerstner. (laughs). The main reason is that we are expanding our European operations. We have a lot of demand from our existing clients, and we knew if we wanted to be a major player in Europe, we would have to be present on the number one European market. So, in addition to our two offices in the UK and one in Paris France, we decided to head for Germany. When we were introduced to Peter and the team, it felt like a good match right from the start.

When considering which companies we might acquire, we check if it is a cultural fit and if they know how to do business the way we do. ipm was and currently is serving a lot of major clients in Germany and they understand what an enterprise client needs. The second thing is that I fell in love with was the people. I went there and met so many awesome folks, and to me that is very important, especially since we want to integrate the two businesses together. Within six months the name BDA is on their building and people need to feel proud of that. Furthermore, their culture, the way they serve customers, and how they want to grow all fits in very well with us. So, it became a great match and I also think Peter Beichel and Tino Gerstner are fantastic leaders, who will anchor our tremendous growth in Europe.

What are the expectations regarding the acquisition?

One thing about BDA is that we view ourselves as one BDA rather than being different subsidiaries throughout the countries. So, the question we are asking right now is: How do we get stronger together? Our market strategy, our servicing, and our customers aren’t just focused on one area like Germany, UK or Italy, rather they have a global focus, with localized expertise. I think we will see some significant growth at BDA in the next few years.

BDA’s scope of client services will be absolutely relevant for existing ipm customers, whether it is regarding buying power, creativity, or how to activate sports sponsorships that some of the clients have. ipm is doing a lot of great things and now we are seeking to infuse some back-office services as well as front-line client services to add to that value.

ipm was intact. They were ready for growth and I think that is a huge difference when looking at acquisitions. We fused capital and we opened a lot of new doors. We have already expanded the headcount within six months- and there is plenty more yet to come.

With Peter Beichel and Tino Gerstner, ipm – or BDA Germany now – has great leaders that can adapt very quickly. I have been out there twice, and Peter Beichel and I have been on multiple sales calls together. Our goal is to grow, and we are planted the right seeds in Germany to do that. It’s rewarding to see this kind of growth in a short period of time, that we know will continue to expand.

How important is the German or European market for United States companies in general?

Most of our companies are global brands. Some of them can control their brand and brand spend in merchandise globally, and others are still learning how to do it. In our industry, there is no other company that is as well integrated into Europe and the US as BDA. So, we use the same systems, and we are constantly communicating and connecting the dots. As a result, we are starting to see some of our US customers lean into our European branch. When companies like Starbucks, Dell or Amazon ask for our expertise in multi-geo assignments, that is where we get excited. We also work with companies like Mercedes, Stihl and Siemens whose headquarters are in Germany even though we service them in the US. With the addition of BDA Germany, we now have the ability to talk about their opportunities in Germany. We are strengthening our ability to work with global companies and align their goals in both the US and European markets.

Are there any differences between the European and the US promotional products market?

To me there are more similarities than differences. Now, different countries have different tastes in brands. Sometimes there are brands that are more popular in Germany, the UK or the US, but I think that the globalisation of branded merchandise and the power of merchandise is very much the same across both continents. If you carry out a great merchandise campaign, your target group loves it. If you do a bad merchandise campaign-meaning you miss the mark, don’t deliver on time, you forgo sustainability, or it doesn’t fit in with the brand-it erodes credibility. So, the similarity is that our customers want the best holistically-in delivery systems, products, and price, and that is why they turn to BDA.

The key questions are: Can you get a website up in two weeks? Can you deliver on time? You could source nice products, but if you can’t get them from point A to point B, the products become useless. In Europe, delivery can be tricky. You have to be great in distribution. ipm has its own distribution unit, which was very important to us. We now have two distribution centres, one in Brussels and the other one outside Munich, and this enables us to move quickly.

Is delivery easier in the US?

Well, that is a loaded question. I’m going to say yes. Crossing a state line is typically much less complicated than moving goods from country to country, like you do in Europe. So, it becomes very critical to sharpen your logistics operations, so delivery is as seamless as possible.

Do you visit the different sites regularly to get an impression of the work processes and progress?

Absolutely. I was there in January. We went to the PSI fair in Düsseldorf and met six or seven clients. I am probably out there three to four times a year. I like to understand the market. Peter and Tino report directly to me, so when they want an answer on something, the more educated I am on the marketplace, the better I can support what they are trying to do. Our growth plans are very aggressive, so the closer we move in lock step, the more it helps.

BDA’s turnover increased by 22% over the last 12 months. What are your goals for the future?

I think BDA will achieve double digit growth again this year. Both Europe and the US are on track to attain significant growth this year.

BDA also offers e-commerce solutions. How important is e-commerce nowadays?

Hugely important. It is all about technology, whether it’s B2B integrations, an e-commerce store, or a gifting platform – these systems need to work together. That is a huge value add to our customers.

Sustainability is a very important topic in Europe. How important is it for the US market and how will BDA ensure that it complies with the different approaches or requirements?

I would say that Europe has been ahead of the US on the sustainability front. The US is getting there though. We have always been on the forefront of sustainability in our products and in our business. We hold the Ecovadis Platinum rating in the EU and are Ecovadis Gold here in the States. For some clients, sustainability is a top priority, and for others it is less important. We still give them a range of choices that incorporate sustainable options, and I believe they appreciate us pushing the envelope for them. In addition, if someone comes to them and asks about sustainability, they have an answer and something to present. Again, when we talk about those global brands: if there is an initiative that is being carried out in Europe, somebody will ask why it is not happening in the US. That is a message we communicate to our existing customers.

Which trends do you envisage in the promotional products sector over the coming years?

I was recently asked what the next Pet Rock [Editor’s note: A hype game from the 70s] was and I would probably say it is the Stanley Travel Mug. That came out of nowhere. Stanley is a brand that has been around for so long and suddenly it got hot.
For me, it is about innovation and brand association. Promotional products have evolved from only being made from plastic to today’s unique branding elements. You can get great co-brandings, you can do collaborations, and you can do your own cool product that is unique to your brand and goes deeper into your brand’s ethos. Whether that is the way you get your Mercedes-Benz key when you first buy a car or anything else. It must be an authentic experience with merchandise. Starbucks does a great job with this. Just walk into a Starbucks and see the retail merchandise with the Starbucks branding. We have to think like that.

Starbucks was founded in the Seattle area, alongside a lot of huge global companies such as Boeing, Microsoft or Amazon and, incidentally, also BDA, which actually lists many of these companies as their customers. How did you start the business?

We are very proud of our Seattle company heritage and the companies we serve. We consider ourselves lucky for the city we grew up in. It kind of goes back to how we started. I called up the NFL 40 years ago when I was a 16-year-old senior at high school. We got a license for having an idea about the Seattle Seahawks, our local American football team. We had a lot of fans coming down from Alaska, and so our idea was to create a sweatshirt solely for the Alaskan fans. And we got that license, which probably wouldn’t happen today anymore. We expanded quickly and said: “Ok, we are doing cool merchandise in the field of sports, so why don’t we do that for the corporate world?” Our first order came from Boeing, and that’s where it really started. We expanded quickly, including brands like Nike and other local clients. From the early days, it was about how we push the creative envelope on merchandise.

Since those days BDA has grown significantly. How do you feel about BDA’s development?

My business partner, who grew up two houses down from me, and I are best friends and that is what is so special about BDA. It has always been, and still is, Eric Bensussen and me, and we are the owners. We’re already able to look back on 40 years of business, and that makes us very fortunate. We now have a turnover of over half a billion dollars and we have over 1,100 people working for us around the globe. BDA is both 40-year-old start-up, because we are still very aggressive, and an established and trusted leader in the industry as we have 40 years of knowledge, systems, growth and a secret little ingredient- that we are like a family.

In what other ways has the world of merchandise and promotional products changed over the last 40 years?

Large companies are noticing the importance of branded merchandise in the overall mix of advertising. Nowadays, you need to start calling your audiences at a very young age. And even at that point, the campaign has to be done right. You must use good, quality items. In today’s world, the customer focuses on something they value highly for free.

The delivery method is important too, but the merchandise campaign’s effectiveness is the most critical thing. That is what smart marketers at large brands have come to understand. Take Nike for instance: They are not just a shoe company anymore. They place their brand name on merchandise, and not just promotional merchandise. They have taught people to desire and value their products. That is what built up their company. The line between branded merchandise versus promotional merchandise blurs for me. It is more important that the products are good quality.

Do you see any differences between the US and Europe regarding how promotional or branded merchandise are handled?

I think there is much more promotional merchandise in the US than in Europe, especially from a game day give-away standpoint. In Major League Baseball many teams need to sell their tickets. We taught the sports world in the US market that branded merchandise promotion can help sell tickets. You just need to add a free premium when the spectators come to book tickets. That is a proven fact here in the US. So, if you want to sell tickets, do a promotional merchandise give-away that your fans will love, and it will work. That is not happening in Europe as much as it is in the US.

So how important is branded merchandise for sports and other corporate companies?

Branded merchandise is super important. It has become a strategy cornerstone of large brands. That is why really good marketers are focusing on their branded merchandise, because there is now an expectation that the merchandise is on-par with TV advertising, social media and other paid media. This is where it becomes part of the overall marketing, with branded merchandise right at the top. In the US they say we are a $27 billion dollar industry. I again say that is promotional. A Starbucks coffee mug in their stores – is that promotional? I view the world as branded merchandise which has, in my opinion, a huge importance in building brand loyalty. For example, if you buy a hat at Bayern Munich I call it branded merchandise. If I gave it to you instead, does it turn in to promotional merchandise? It is still branded merchandise and companies should take those campaigns extremely serious.

Sports are an important part of your portfolio. Did you come up with a focus on sports marketing and merchandise on purpose? If so, why?

It is in our DNA. We started the company in sports merchandising and continued on from there. Today, we are extremely fortunate to be the largest sports promotions company in the US. We also have the largest portfolio. We work with every single sports brand, not just the NFL, MLB, NBA or NHL, but also for the UFC and the Olympics. We consider ourselves to be sports experts and that is why sports teams approach us, just like the leagues. We are starting to expand that into Europe and Germany, too. We are proud of our affiliation with the DFL and recently signed deals with FC Bayern Munich and FIFA, which is very exciting. We feel like our sports expertise is getting known in Europe as well.

Over the last couple of years, the NFL became pretty popular in Europe. There are even games in Germany and England. Do you expect the NHL to get as big as the NFL and how important is it to offer merchandise while making a sport more popular abroad?

Exceptionally important. Whether its NBA, NHL or NFL, even the MLB is going to the UK right now. You can go to a game and today you don’t even leave with a ticket stamp since it is all digital. So, what do you have as a memory from that game? That is where branded merchandise comes into play. The queues to get into the merchandise tents and for sponsors who are activating and giving things out are huge.

You are part-owner of the NHL team, Seattle Kraken. Is your relationship to this team different to the others you produce merchandise for?

While I love all teams, I am very proud of my association with the Seattle Kraken. We have to remember that just under three years ago we launched a new brand. We didn’t have a team or a name. I’m very proud of the work we did to help design the brand and the logo. I was involved in naming the team and the pressure was huge. If you get the name wrong, that is a legacy. But I guess we nailed it, and the merchandise is just as cool as the name!

Are there different favourite merchandise items for different sports and what is the bestseller of the Seattle Kraken?

We came up with a tentacle. It is a plush tentacle that you put on your hand, and you see people waving them at every single game. It is so authentic to us and everyone loves the tentacle. You always want to come up with unique merchandise that has never been done before and this was a huge hit. The jersey is the bestseller though.

After founding the Seattle Kraken, you donated the first income of the online sales. How important is social responsibility for BDA?

Massive. We call it BDA Cares. We just did a fundraiser at our national sales meeting here. We donated $176,000 dollars to the American Cancer Society. We are very involved in the philanthropic needs of our communities, not just in Seattle, but globally. Our employees have done an amazing job at raising funds and volunteering hours. I estimate that annually, BDA probably gives away half a million dollars in time, money, and goods for charities, sustainability, and DEI (Diversity, Equity and Inclusion) initiatives.

What is special about branded merchandise for you?

I am quite sincere when I say I love what I do. We make branded merchandise for thousands of customers and our sports customers, and when you watch a recipient being given branded merchandise, it elicits emotion. I love it and every night I go to the Seattle Kraken game and go to our store there and watch kids, parents or single people coming in, finding what they like and saying, “I love this brand and want to take it home with me.” It fills me with an amazing amount of pride watching my merchandise walk around the streets. I have seen it all over the globe and I am still fired up by doing great merchandise campaigns.

Sophia Arnold spoke to Jay Deutsch.

photos: BDA