The future of Foster's in F1

There are reports in Australia that Foster's will soon end its various sponsorship deals in Formula 1. The Australian company has a five-year $3.7m annual deal to sponsor the Australian Grand Prix and also pays out around $18m a year for other F1 sponsorships, including pouring rights at events. The contracts are up for renewal at the end of the year and Foster's is expected to drop them because of a 1995 deal which means that Foster's gains little from the exposure it is paying for. This is because of an international licensing arrangement with Britain's Scottish & Newcastle brewery which entitles Foster's to just $23m a year from S&N for rights to the Foster's brand in Europe. Foster's sales are estimated to be worth $75m a year to S&N. Foster's itself is not a big brand in Australia and is now developing into a high-end wine company.

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