SA fires warning shot in cola wars

One of sport's biggest global brand wars came to South Africa's parliament on Tuesday with legislators voting to shield Pepsi Cola from ambush by its major rival during next year's Cricket World Cup.

Trade and Industry Minister Alec Erwin told legislators the Merchandise Marks Amendment Bill was vital to protect South Africa's small but growing position in the world sports and entertainment market.

Behind his concern was fear of a repeat of the 1996 World Cup row in the sub-continent, where Pepsi contracted key players to carry its brand during an event officially sponsored by Coca Cola, and flew a branded airship alongside stadiums.

Legislators voted overwhelmingly to give Erwin the right to declare the cricket World Cup and other events of similar size protected against piggy-back marketing by companies not registered as sponsors.

South African law already prohibits attempts to pose as an official sponsor of an event, but the new amendment criminalises any misuse of an event logo to promote a product not listed as a co-sponsor.

The new law will prohibit rival advertising in the vicinity of a stadium and advertisements referring to an event even without the suggestion of co-sponsorship.

"The motive is to place South Africa in a stronger competitive position to host this kind of event in the future," said Trade and Industry committee chairman Rob Davies.

In effect, the amendment would protect Pepsi, the major sponsor of the event that is expected to attract 1.2 billion world-wide television viewers, from other soft-drink manufacturers attempting to cash in.

Erwin said it would bolster confidence in South Africa as a venue for major sports and entertainment events.

"If we want to hold these events, we need very large sponsorships. We have to take the protection of those rights into account," he said.

The liberal Democratic Alliance, with 38 of the 400 seats in South Africa's parliament, was the only party to oppose the measure.

Mail Cricket Editor