SBD/4/Sponsorships Advertising Marketing

DOES CANADA'S TOBACCO DEAL GIVE REPRIEVE FOR ONLY TWO YEARS?

          The Canadian government introduced amendments that will
     allow tobacco companies to continue sponsoring sports and
     cultural events through 2000, according to McIlroy &
     McCarthy of the Toronto GLOBE & MAIL.  But after 2000,
     tighter restrictions will be established and all sponsorship
     would be banned by 2003.  The previous law would have placed
     prohibitions on tobacco sponsorship as early as this
     October.  McIlroy & McCarthy report that the government's
     decision to give cultural and sporting events more time to
     wean themselves from tobacco-sponsorship money is being
     criticized by opponents "as a sellout to the industry," but
     Health Minister Allan Rock "defended" the amendments, saying
     they make the Tobacco Act more "severe" and "restrictive." 
     Rock: "What we are doing is ensuring that, after the
     transition period, sponsorship by tobacco companies simply
     will not be allowed" (Toronto GLOBE & MAIL, 6/4). 
          WHAT IT MEANS: The tobacco industry "welcomed the
     reprieve," but said that they would probably sponsor events
     for "only the next two years because after that the
     restrictions would make it not worth their while."  Tobacco
     companies spend about C$60M a year to fund more than 370
     arts, sports, fashion and entertainment events in Canada,
     including the Grand Prix in Montreal and Trois Rivers,
     Molson Indy in Vancouver and Toronto and the Du Maurier-
     supported tennis events (Toronto GLOBE & MAIL, 6/4). 
          DETAILS: Government restrictions, set to start after
     2000, or after the proposed amendment is approved, include:
     direct mailing of sponsorship materials must be sent to an
     identified adult; print ads allowed only in publications
     with primarily adult readership; signs promoting events will
     be restricted to bars and taverns; and promotional material
     mentioning tobacco will be restricted to the bottom 10% of
     the surface area.  Molson Indy Toronto GM Bob Singleton, on
     the reforms: "We're very happy.  This allows us time to seek
     replacement sponsors" (Grange & Blair, GLOBE & MAIL, 6/4).

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