Dunhill Links Championship - background
info 'Brand sharing' - profit generating 'dunhill' cigarettes
- loss making 'dunhill' luxury items back to
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"So what took place at St Andrews last week was
not a golf tournament sponsored by a cigarette company but one sponsored by a
company selling lighters to smokers, which is owned and heavily
cross-subsidised by another company which makes most of its profit from tobacco
sales." - Lawrence Donegan, The Guardian, 5 October 2005
"No laws have been broken but
what you have here is a classic case of brand stretching. It is not against the
law, but it is certainly against the spirit of the law, and the European Tour
should do itself a favour and end Dunhill's sponsorship of this event as soon
as possible." - Maureen Moore, the chief executive of the anti-smoking
group ASH Scotland
"It could be argued that Richemont has a strong
interest in promoting a leading BAT tobacco brand, and we are very concerned
that this is the effect of the sponsorship." - Ash Scotland response to
Scottish Executive draft tobacco promotion bill
"Clearly, [Dunhill] is a luxury goods company
using its luxury goods media to promote a smoking-related product. .... Can
Dunhill's sponsorship of the Dunhill championship golf tournament still go
ahead, on the basis that it is promoted by the luxury goods side of Dunhill
rather than the tobacco side? Surely it is seeking to promote a tobacco brand,
too." - Tim Loughton, MP whilst debating issues relating to the Draft
Tobacco Advertising Promotion (Brandsharing) Regulations 2004
Draft Tobacco Advertising Promotion (Brandsharing)
Regulations 2004 - issues raised:
Tim Loughton, MP addressing Miss Johnson, MP
Can the Minister confirm whether under the regulations
Dunhill will be able to carry on just as before, as historically the tobacco
and luxury goods sides have been separate? That is my understanding from the
answers that the Minister and her colleague in the House of Lords gave.
However, Dunhill luxury goods company sell expensive
cigarette lighters, and Dunhill luxury goods website advertises lighters as
well as other luxury goods. Will that be able to continue? Clearly, that is a
luxury goods company using its luxury goods media to promote a smoking-related
product.
That is a much closer link than that between Davidoff Cool
Water aftershave and Davidoff cigarettes. Can the Minister clarify why Davidoff
appears to be being treated differently from Dunhill?
Can Dunhill's sponsorship of the Dunhill championship
golf tournament still go ahead, on the basis that it is promoted by the luxury
goods side of Dunhill rather than the tobacco side? Surely it is seeking to
promote a tobacco brand, too.
Where in the regulations does it state that Dunhill is to
be exempt? Or are we to presume that the Government have taken the view that
use of the name does not have the purpose or effect of promoting
Dunhill-branded tobacco products? Can the Minister say, chapter and verse,
where in the regulations it says that Dunhill will not be affected by the
regulations, and so why it has not protested about them? Or will it be up to
the lawyers to argue the toss, at great expense, in court, as I suspect?
ASH Scotland concerns regarding dunhill links promotion
of tobacco, as extracted from :
Response from ASH
Scotland to Scottish Executive consultation draft bill on tobacco
advertising
Tobacco Advertising and Promotion (Brandsharing)
Regulations - Prohibition of Brandsharing
ASH Scotland is delighted that brandsharing will be covered
under the terms of the bill. This is a major advance for tobacco control in
Britain. The consultation paper makes a very strong case for including brand
stretching in the legislation, covering many of the key points and citing
compelling evidence in support of a ban on brandsharing. We welcome the
comprehensive definitions of "other feature" outlined in Regulation 2.
We do have reservations about the practical impact of the
Exemptions outlined in 4(2), and the circumstances in which the intention to
promote a tobacco product is judged.
In Scotland, the annual Dunhill Links golf championship
is sponsored by the leather goods company Alfred Dunhill. However, the public
perception of the event is that it is sponsored by Dunhill cigarettes. This
means that the effect is to promote a tobacco product, even if that is not the
intention. We also note that Alfred Dunhills parent company, Richemont,
currently has a 21% share in British American Tobacco, which makes Dunhill
cigarettes. It could be argued that Richemont has a strong interest in
promoting a leading BAT tobacco brand, and we are very concerned that this is
the effect of the sponsorship. We are extremely concerned that the exemptions
create a potential loophole which may undermine the ban on tobacco
sponsorship.
We believe that this regulation should be redrafted to
prohibit brand sharing in all cases where the effect is to promote a tobacco
product.
Read also
Dunhill Launches Perfectionist
Series more
Korean Times, 29 September 2005
British American Tobacco Korea, the maker of premium
cigarette Dunhill will launch next week the Dunhill Perfectionist Series
designed by four renowned perfectionist artists.
Not enough evidence for prosecution of
dunhill more
Business Day, South Africa, 20 February 2004
The organisers of the annual dunhill golf tournament will
not be prosecuted under tobacco control legislation, police say.
Films and branded clothes face
ban more
Adam Sherwin, Media Reporter, The Times, 23 August
2002
Tobacco companies plan to sidestep the advertising ban by
selling lifestyle products that will subliminally prompt the purchaser to buy
cigarettes.
Read more in Richemont News
DUNHILL LINKS CHAMPIONSHIP - Richemont sponsored -
£3.5m prize fund - world-wide TV
The 'dunhill' has been described as an unloved pro-celebrity golf
event. Perhaps so, but that would rather miss the point. This event is
promoted worldwide through the huge IMG sports television network, and this
pro-celebrity format is popular with one of the main target groups - young
Asian smokers.
'DUNHILL' CIGARETTES - profitable BAT brand - major
player - marketed heavily in Asia
Dunhill links championship promoter Richemont has endured a difficult year, with
much of its core luxury business suffering. In fact, 75% of the 2003 net profit
is derived from 'associated' BAT tobacco holdings - and much of that is derived
from profits from leading BAT cigarette brands such as 'dunhill'.
Richemont had, until quite recently, been taking steps to
'reduce' their tobacco holdings, but now Richemont chairman says won't
sell BAT 'profit driving' stake.
Investment advisers regard Richemont as a good 'tobacco'
stock.
Richemont shareholders want Richemont to make money, and
they will be aware that the money is most likely to come from tobacco, at least
in the short term. They may regard the £3.5m 'investment' in the
'dunhill' links as money well spent in the promotion of one of the main profit
drivers, 'dunhill' cigarettes.
Read more about the tobacco connection in Richemont News
'DUNHILL' LEATHER GOODS - loss making brands - Richemont
owned Alfred Dunhill Ltd.
Considering the state of their core luxury goods business,
Alfred Dunhill hardly seem to be in a position to find the £3,5m required
to host the dunhill links championship.
Alfred Dunhill has failed to make a profit for several
years, and it has been forced to trim operations - Richemont - luxurious
downturn. The company is rather dependent on 'tobacco rich' parent
Richemont at the moment.
It could be said that Alfred Dunhill Ltd has become a useful
Richemont group 'brandsharing' tool.
Alfred
Dunhill claim not to have any connection with tobacco, but consider the
following :- 
The Mixture 965 tobacco tin nomenclature was changed, circa
1994, to:
'Made in the UK in association with Dunhill Tobacco of
London'
Dunhill Tobacco of London (a close neighbour of Alfred
Dunhill Ltd) is now the holder of most of the, very many, original Alfred
Dunhill tobacco trademarks - including some which were temporarily in the hands
of Rothmans, the makers of Dunhill branded cigarettes.
According to records held at Companies House, Dunhill
Tobacco of London consider their ultimate parent company to be British American
Tobacco (BAT) - the new owners of Rothmans.
Alfred Dunhill Ltd today plays down its association with
tobacco. "We're a bit embarassed about it" stated chairman Richard Dunhill,
grandson of Alfred - read the article here. back to
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