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Dunhill Links Championship - background info
'Brand sharing' - profit generating 'dunhill' cigarettes - loss making 'dunhill' luxury items
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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 Dunhill’s 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.

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