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U.K. upsets European tobacco ad ban

[london] The U.K. has sparked a new controversy in the long-running European Union debate on banning tobacco advertising and sponsorship by announcing it would only agree to the ban if sponsorship of Formula One motor racing is exempt. EU Commissioner Padraig Flynn, who drew up the draft legislation, warned that efforts to enact an EU-wide ban on tobacco advertising and promotion face collapse if the U.K. continues to insist on the exemption for F1 racing. A meeting has been called for Nov. 12 to break this latest EU impasse.

M-B fights bad PR with humor

[copenhagen] Daimler-Benz AG went into overdrive to break print ads in 10 Danish and 60 Swedish newspapers touting the safety of its newly launched Mercedes-Benz A-Class. The rush came following reports the new model had tipped over at speeds as low as 60 kph during a so-called "moose test" in which drivers simulate sudden lane changes to avoid a moose in the road. The tests were conducted in Sweden.The ads use humor to depict the new model upside down. The caption reads, "The famous Mercedes-Benz star has a big advantage: it can be read even if the car is upside down!"

Interbrew links with Cisneros

[toronto] Interbrew SA, owner of Labatt Breweries, has formed a new partnership with Cisneros Bottling Group in Caracas. "South America is one of the fastest growing, most exciting beer markets in the world," said Gustavo Cisneros, chairman-CEO of Cisneros.

B.A.T swallows Mexico tobacco unit

[mexico city] Empresas La Moderna has announced it has reached an agreement to sell remaining shares in its CLM cigarette unit to B.A.T Industries as part of an option under an earlier transaction. CLM has about 54% of the country's $1.5 billion cigarette market. B.A.T earlier acquired 50% of CLM plus two additional shares, giving it a controlling stake, plus an option to buy out the shares still held by Empresas La Moderna within six months. When the deal closes-expected later this month-CLM will be a wholly owned unit.

Sunbeam lands with O&M Europe

[london] Sunbeam Corp. has handed Ogilvy & Mather Europe the task of leading an aggressive pan-European marketing drive. O&M was appointed, without a pitch, on the strength of its work on the brand in the Americas and because of the network's international capabilities. Sunbeam in the U.K. was previously handled

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