Liquor Company Objects to Racing Sponsorship

Liquor company Pernod Ricard is threatening to withdraw from the industry alcohol-education group The Century Council, saying the group should not be involved in sponsorship of auto racing, MarketWatch reported Sept. 14.

Pernod Richard USA president Alain Barbet recently wrote to the group saying that "we at Pernod Ricard firmly believe that is inappropriate for the distilled-spirits industry to engage in sponsorship of motor sports. We also believe strongly that any involvement of the Century Council in these sponsorship activities runs the risk of damaging [its] well-earned credibility . . . and undermining its message of responsibility."

Pernod owns brands like Chivas Regal, Wild Turkey, Stolichnaya, Beefeater and Perrier-Jouet. The company is a major financial backer of the Century Council, which mainly focuses on drunk driving and underage drinking.

Racing circuit NASCAR recently amended its rules to allow liquor-company sponsorships, and companies like Diageo quickly signed up; beer companies have sponsored NASCAR teams for years.

Century Council CEO Ralph Blackman said the group is trying to work out a compromise to keep Pernod from leaving. "When you have an organization that represents eight different companies, this isn't the only issue where everybody doesn't see to eye-to-eye. It's [just] a little thornier than most," he said.

The Distilled Spirits Council of the U.S. endorses liquor ads in auto racing. "We believe it provides spirits companies a useful option for showcasing both their brands and their responsibility messages," said spokesman Frank Coleman. "It also further levels the playing field with beer."

But a Pernod spokesperson said that "what we do object to is member companies using the Century Council in conjunction with an individual branded sponsorship."