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Marketing and Sponsorship

Threat Of Alcohol Ban Grows For Cash-Strapped Formula One Teams

F1 was told to ditch tens of million of pounds of sponsorship from drinks firms "as the sport moves closer to a ban," according to Kevin Eason of the LONDON TIMES. A key group underwritten by the European Union and representing 57 public health organizations from 25 European countries "has demanded the sport rip up sponsorship deals involving some of the biggest names in the drinks industry." Letters have gone out to FIA President Jean Todt and F1 CEO Bernie Ecclestone's Formula One Management company "with warnings that sponsor deals in sport with drinks companies contravene European Union rules and should face an immediate ban." Only two months ago, Diageo, the world's biggest whisky producer, "signed an agreement with Ecclestone." Although this is a letter from a pressure group, the organization, which calls itself Eurocare, "is underwritten by the European Union and next week holds a conference in Brussels in the heart of government" (LONDON TIMES, 11/12). In London, Daniel Johnson wrote it "has been a bumper year for alcohol advertising in Formula One, with the return of Martini to Williams" in a deal worth around £10M ($15.8M), and the announcement of Johnnie Walker as the official whisky supplier of the championship. McLaren "also have Johnnie Walker" on the side of its car, which is thought to bring £15M ($24M) a year. Smirnoff "signed an agreement with Force India in May" (TELEGRAPH, 11/12).

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