Burning Point: Formula One and Tobacco Sponsorships

One of the first big wins is when PMI is forced to pay $51,5 Million to a California smoker with lung cancer by a California jury. This led 46 states in the USA to sue tobacco companies under consumer protection and antitrust laws. 

In November 1998, 46 attorney generals of the 46 states and four Tobacco Companies (Philip Morris Inc., R. J. Reynolds, Brown & Williamson, and Lorillard) settled in what is known as the Tobacco Master Settlement Agreement, In which the companies agree to refrain advertising practices, especially towards kids, pay an annual sum with the minimum of $206 billion over the next 25 years, and dissolved three of the four company.

The second thing that greatly impacted tobacco sponsorship in F1 is the World Health Organization Framework Convention on Tobacco (WHO FCTC) which is the first international treaty negotiated under the auspices of WHO regarding tobacco control.

The treaty was adopted on 21 May 2003 and entered into force on 27 February 2005. Among the things that the treaty regulates, tobacco advertising is the most impactful. 

F1 itself agrees to ban tobacco sponsorships in the 2007 season under the treaty and pressure from the governing body Federation Internationale de l'Automobile (FIA) in 2001 agreed to end tobacco sponsorship by 2005. 

And the fact that some countries already banned all forms of tobacco sponsorships justified the banning further. However, since 16 years ago, F1 has failed to "clean" teams from the influence of tobacco sponsorships.

Highest Revenue Stream Since the '06 Season

In the 2021 season, the global tobacco industry watchdog, Expose Tobacco has revealed that revenues from Tobacco Sponsorship in F1 are the highest since the 2006 season, the last time that tobacco sponsorship was legal.

It was found that teams and tobacco companies have found ways to circumnavigate the brand by rebranding them as a corporate responsibility (PMI) and a brand of nicotine pouches (BAT). The team responsible for this advertising is Scuderia Ferrari S.p.A. and Mclaren Racing Ltd. 

Scuderia Ferrari S.p.A. after the 2006 season maintained a relationship with PMI and up until the 2011 British Grand Prix, would race under the name "Scuderia Ferrari Marlboro Racing" and would place barcodes as the replacement for the Marlboro logo despite the ban taking place and. 

However, this does not mean the end of the relationship with PMI. In the 2018 season, Scuderia Ferrari S.p.A raced with the Mission Winnow branding in the 2018 Japanese Grand Prix. 

It comes with a controversy when it was revealed that PMI is the parent company of Mission Winnow. Branded as a corporate social initiative, Mission Winnow is revealed to be a venue for PMI sponsorship.