Clearing up the air

Last week's Formula One test session at the Barcelona circuit was remarkable for the amount of tobacco livery about the place. Both Ferrari and Renault sported fag colours in apparent conflict with European Law, which, as of August 1st last year, outlawed sponsorship of sporting, educational and cultural events and teams within the 25-country territory.

With EU law overriding legislative powers of individual member states, and Spain being very much one of the earliest signatories, there existed much confusion in and around the paddock. Dieter Rencken asked Gary Carey, head of sponsorship for British American Tobacco, whether the laws had changed during Formula One's winter break.

DR: Gary, you're here in Spain today, Wednesday, on the occasion of Honda's RA106 launch, which is sponsored by your Lucky Strike brand yet is sporting 'Racing Revolution' branding (in place of the tobacco brand), while bearing full allegiance to their tobacco sponsors. Has EU law changed? What is going on?

Carey: "The situation, with particular reference to this circuit, is that we are not allowed, through virtue of the EU legislation that came into force on July 31st last year, to brand in EU countries, and with Spain being within the EU means we can't brand (here).

"But there seems to be a bit of a vagary in terms of this circuit, because the Spanish are saying they are going to give an exemption within their own law for the teams to be able to brand at the Spanish race, and I guess that some of the other teams have interpreted that as meaning that the exemption applies to Spanish circuits at all times.

"But it is pretty clear to us that there is overriding higher law which is European Law, which says we may not brand, and we (BAT) will respect that law and follow the EU legislation."

DR: So what you're saying is that Spain has decided to put itself above EU law...

Carey: "Well, they have chosen to, if you like, amend the framework of EU law, and I am not sure where they stand or whether the EU will actually call them to account for that, for choosing to interpret the law in their way, which they also did to France and Germany and others who chose to interpret the law in their own way. I mean, everybody has known for the past three years that the law is coming, and we will comply with it."

DR: As far as tobacco around the world is concerned, what is the situation? Where can you, and where can't you, run tobacco livery?

Carey: "That changes all the time, but currently as far as we are concerned, of the 19 races, we can brand at six - those six being Bahrain; Malaysia, which has a local exemption; Australia (ditto); Monaco, which is pretty much a law unto its own; Japan and, perhaps, China.

"China may come with the exemption they brought in last year."

DR: Brazil, no?

Carey: "Brazil, basically we're waiting to see whether President Lula, keeps the exemption, which in theory ran out last."

DR: Will we this year see any non-tobacco livery that likens to the tobacco one?

Carey: "I can't comment on that other than to say that for us it is pretty clear. We have a branded and an unbranded livery, and all we seek to do is to have some sort of similarity between them. That wish comes from the team; they don't want us to change the look and feel of the car from one week to the other. It is an absolute nightmare for them, and so is the archiving of photography.

"I don't think you will see such things; the tobacco-branded teams are fairly skilled in what they can and can't do, and it is really pretty irresponsible to come with something that gives a likeness which leads to a particular brand. I think that is a little bit irresponsible.

"The interesting thing is that the tobacco companies concerned agreed last year at Monza that within the EU we would not brand, even if the local law permitted it. We agreed that, full stop. We agreed that even if individual countries within the EU brought in regular exemptions for races to run branded, we would respect the higher law. So I was quite surprised, actually, to come here and see some of the other teams running in contradiction with that agreement."

DR: Having sold your remaining 55% shareholding (in BAR) to Honda, BAT have obviously exited Formula One from an ownership situation. But what about Lucky Strike? Is the brand looking to exit Formula One?

Carey: "Yes."

DR: That's definite?

Carey: "That's definite. I mean, the reason for that is that we signed up to the International Marketing Standards (in September 2001), which is a self-regulatory agreement between ourselves and Philip Morris (Marlboro) and the other tobacco companies, in which we all agreed to pull out of all motorsports sponsorships by the end of 2006.

"The agreement is a means of regulating our industry, our own code of conduct. There are many, many different areas where we can continue in sponsorship outside of motorsport, but by continuing with Ferrari, Philip Morris have obviously decided to tear up the agreement. It is within their rights to do so; they are not breaking the law.

"We have decided to market to adults in other ways, communicating with our customers in more targeted ways, depending upon what countries they are in, and what the local laws are. I think the most important thing is that we will always respect local laws, even where others don't. That is why we are not branded here in Spain."

Postscript

It seems the Catalunya circuit will need to scrap plans for exemption, however. Autosport.com understands that the European Union Health and Consumer Protection Commissioner Markos Kyprianou issued warnings to Germany and Luxembourg for failing to include EU tobacco directives, which ban adverting - by whatever form - of tobacco products within the EU, in their national laws.

"I am determined to enforce this piece of legislation, which is essential in the fight against smoking. I am sure that all governments realise that glamorising smoking through fancy advertising can have devastating effects, in particular on young people," said Kyprianou in Brussels on Wednesday. "So I strongly urge non-compliant countries to come back into line and help us defend European citizens' health."

He added that his commission would not hesitate to take similar action against other countries that have "implemented exemptions or granted derogations which go against the provisions of the directive."

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