Marlboro Men To Diversify?

Philip Morris, owners of the Marlboro cigarette brand, is considering a diversification into other product markets in order to circumvent the proposed ban on tobacco advertising.


The Marlboro colours and logo currently adorn the Ferraris of Michael Schumacher and Rubens Barrichello, but could be forced out of the sport within five years by the European Commission and its plans to reduce the amount of tobacco promotion allowed within its boundaries.


Although F1 bosses have threatened to reduce the number of grands prix within the EU as a protest against the new rules, it is noticeable that several teams, led by Williams and Arrows, have moved away from a previously lucrative source of income and dipped their toes into the waters of other market sectors.


Marlboro, however, has become synonymous with F1 and, according to the British Financial Times, its parent company is keen to preserve the brand even if it no longer advertises cigarettes. Following the lead tentatively set by rival Camel in the early 1990s, Philip Morris is considering the extension of the Marlboro name - which is currently valued at ?13billion - into hotels, the media and telecommunications.


Although the decision to diversify would not necessarily find favour in Europe, where it would be viewed as a concerted, but covert, attempt to promote tobacco products - and outlawed altogether in the US by a binding agreement amongst tobacco firms - it could prove to be the answer to arresting what is now a gradually declining brand.


Philip Morris refused to comment.