Tobacco - brand stretching, market control

Chris Burford cburford at gn.apc.org
Mon Mar 1 23:01:52 PST 1999



>From the site Tobacco Control Resource Centre,
funded by World Health Organisation, European Commission and British Medical Association

www.tobacco-control.org/

Brand stretching

.. you could probably guess who owns Benson and Hedges coffee and coffee shops.

Woking (UK) based "World Investment Company" (WIC) is licensee for the Benson and Hedges coffee, soon to go on sale in the UK. Action on Smoking and Health (ASH, UK) and the UK's Health Education Authority have both informed the British press that this is clearly a cynical ploy to "stretch" the tobacco brand name.

A spokesperson for WIC has stated the objective to be "to develop products of a non-tobacco character".

If WIC really wanted a product of a non-tobacco character why give the product a tobacco brand name? Similarly, why "develop" a product which they clearly state is synonymous with having a cigarette?

The reason is simple: World Investment Company is a private company set up by British American Tobacco (BAT). It will accompany other brand stretching gimmicks like Kent Travel, John Player Special Whisky and Lucky Strike clothing.

Rights to the Benson and Hedges brand name are owned by, wait for it, BAT across much of the non-European world, Gallaher in the EU and EFTA countries and Philip Morris in the US. It would appear everyone can gain from having the B&H logo on display on the beverage shelves of supermarkets, especially in the wake of an advertising ban across Europe. British American Tobacco (BAT) have been operating B&H coffee shops in Malaysia for 2 years (where there already exists an advertising ban), the intention always being to create an international coffee brand and bistro chain.

We all know that Philip Morris and Richemont (owners of Dunhill, who recently merged Rothmans with BAT) have been manufacturing "luxury" clothing and consumer items for years but such is the faith of the tobacco industry in the untapped tobacco markets in less developed countries, they aren't going to bother buying up companies to become conglomerates like Philip Morris. They aren't interested in diversification, they want brand recognition. They are engaging in a tobacco war, but the competition is Public Health not their market competitor.



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