Jump to full article: Bloomberg News, 2005-07-29
Author: Alex Duff in Madrid
Intro: Formula One racing teams, which receive $250 million from tobacco companies, can't kick their nicotine habit.
On August 1, a European Union ban on tobacco sports sponsorship comes into effect, and at least four of the 10 teams in Formula One say they'll scrub cigarette names off their cars while keeping the colors and designs associated with brands such as Marlboro and Lucky Strike.
The arrangement allows Formula One teams supported by Altria Group Inc. and British American Tobacco Plc to keep the cash and helps cigarette makers maintain a presence before the 150 million television viewers of the sport. Now Hungary is opting out of the ban and will let brand names stay on cars racing in its Grand Prix. The moves have outraged health campaigners and led to threats of legal action by EU officials.
``It's the latest dirty trick by the tobacco industry --it's quite deplorable,'' says Amanda Sandford, head of research for Ash, a London-based anti-smoking lobby group. ``For all intents and purposes tobacco advertising will continue.'' , , ,
In the meantime, television viewers are certain to respond to car designs that echo Marlboro's bold red packaging and Lucky Strike's circle, says Jez Frampton, chief executive officer of London-based brand consulting firm Interbrand. The firm rates Marlboro as the world's 10th-best-known brand.
``People will spot it, without a doubt,'' says Frampton, 40. ``Design is powerful. That's why companies spend a lot of money on corporate identity.''
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