OCTOBER 31, 2001
BAT's sales continue to grow
THE Formula 1 team may not be doing much but British American Tobacco continues to make big profits, registering a nine percent increase in the sale of its big brands and profits in the first nine months of the year of over $3bn. The Formula 1 team has debts estimated to be in the region of $200m but if it is concluded that the racing team is justifying its existence in terms of marketing the company's support of BAR could survive the end of the current season when the five year sponsorship deal comes to an end.
There has been speculation that BAT would sell the team at the end of the year but it may conclude that it is wiser to hold on until tobacco advertising regulations finally force tobacco sponsorship out of F1.