Marlboro renews Ferrari F1 deal despite tobacco ad ban

The tobacco brand's current deal with Ferrari expires at the end of next year. Owned by Philip Morris, its association with Ferrari stretches back to 1984.

Philip Morris has confirmed it will not lobby against the advertising ban. The Ferrari cars will only carry the Marlboro branding in countries such as Malaysia and Bahrain, where the ruling has not been adopted.

China became the latest Formula One-hosting country to ratify the tobacco ban last week. The ban is already in place across Europe and the US, having initially been introduced by the World Health Organisation.

The deal gives Philip Morris sponsorship rights to the entire Ferrari car. To date, the tobacco manufacturer has then sub-contracted space to other sponsors, such as Shell and Vodafone, at a marked-up price.

Vodafone renewed its sponsorship of Ferrari for a further two years last year, for an estimated £50m.

If the space -- among the most sought-after in F1 -- does not sell, Marlboro can still use its red and white box and black bar design on the cars, as this does not contravene the existing rules.

Philip Morris has developed a contingency plan within the new contract in case the regulations are tightened to outlaw the use of design images associated with tobacco brands.

This would allow the company to promote the non-tobacco brands it owns on the Ferrari car, such as those in the Kraft Foods range.

British American Tobacco brand Lucky Strike (BAR team) and Mild Seven (Renault) are among the other brands affected by the ban.

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This article was first published on Marketing