F1 is growing fast with Big Tobacco along for the ride
The report details how F1’s growth strategy aligns with the cigarette corporations’ interests. New races are scheduled in the Americas and Eastern Mediterranean, which the companies target for growth. F1 is also securing a better broadcast deal in China, which is home to the world’s largest population of smokers.
The sport is growing particularly rapidly in the United States, which will host three races in 2023 and is seeing record race attendees and TV audiences. Vuse, the e-cigarette brand BAT advertises through its F1 sponsorship, is the second-most popular e-cigarette among U.S. youth. PMI has re-entered the U.S. market and will have sole rights to commercialize its IQOS tobacco product in the U.S. from April 2024.
Jorge Alday, Director of STOP partner Vital Strategies, comments, “Formula One wants to grow by reaching a younger audience and that goal lines up squarely with the plans of big cigarette companies. Because it is so hard to regulate streaming platforms, Netflix is the perfect vehicle for Philip Morris International and British American Tobacco to bypass advertising restrictions on a global scale.”
The report shows how F1 helps PMI and BAT subvert a global treaty and national laws. Many countries, like Australia, do not permit any tobacco advertising or sponsorships and others such as India heavily regulate advertising and ban the sale of the industry’s electronic products. F1 race coverage and “Drive to Survive,” however, deliver the cigarette giants’ brands to consumers in these markets. At the 2022 Mexico City Grand Prix, McLaren cars carried Vuse branding even though Mexico banned e-cigarettes and marketing.
Big Tobacco’s newest marketing vehicle: Netflix
“Formula 1: Drive to Survive” has attracted new audiences, including fans who don’t otherwise watch F1 races. PMI and BAT benefited significantly from Season 4’s focus on the rivalry between Ferrari and McLaren, the teams they sponsor, with tobacco company branding appearing in nearly one in three one-minute segments* of broadcast footage. Half of all episodes contained tobacco-related branding in the opening minute and the average viewer will have been exposed to more than 34 minutes of programming containing tobacco-related content—an estimated 1.1 billion minutes of footage consumed globally.*
“As specialists in F1 sponsorship, we knew that ‘Drive to Survive’’s popularity had given sponsors a big boost for their money,” said Caroline Reid of Formula Money, a co-author of the report, “but even we were surprised by the amount of tobacco-related footage. PMI and BAT even benefited from past sponsorship deals: One minute of historic footage featured five different cigarette brands, including PMI’s Marlboro. And BAT notably stretches its McLaren deal away from the racetrack to arts projects and Tomorrowland music festivals, potentially overlapping with those younger Netflix audiences.”