Swedish Match has decided to
become a principal partner in a Whitbread project organized by
Krantz/Nilson Team for participation in 1997-98 Whitbread Round
The World Race.
"The global character of the
Whitbread enables us to display Swedish Match as a worldwide
enterprise in a number of ways," says Göran Lindén,
President and Chief Executive Officer of Swedish Match. "We
will utilize the Whitbread project to promote the Swedish Match
name both internally and externally and to generate
business."
"As the principal partner in
our Whitbread project, Swedish Match will obtain the greater part
of the commercial value generated by the project," according
to Roger Nilson, Project leader and Co-skipper/navigator.
"The financial commitment will secure a competitive
participation in the 1997-98 Whitbread."
"We have chosen to
participate in the Whitbread rather than the Grand Mistral
because the former offers the greatest sporting competition and
the largest commercial benefits for our partners," says
Gunnar "Gurra" Krantz, Sports Manager and Skipper of
Krantz/Nilson Team.
The Whitbread Round The World
Race, which is being staged in 1997-98 for the seventh time, is
the world’s longest sailing race and one of the most
demanding team events for professional sailors. It also offers
one of the great challenges and adventures of our times. This has
created broad interest in the race, making it one of the most
publicized sporting events in the world. Television exposure will
be at least tripled for the 1997-98 race in comparison with last
race as a result of a contract negotiated by Trans World
International on behalf of the Whitbread organization.
"The global character of the
Whitbread Race fits well with Swedish Match’s profile as a
worldwide company. We are a globally operating company, based in
Sweden and recently listed on the Stockholm Stock Exchange. We
have production in 12 countries and sales in approximately
140", says CEO Göran Lindén. "The company has sales
of nearly SEK 8 billion, with slightly more than 7,000
employees."
As the principal partner, Swedish
Match will obtain the greatest part of the commercial value
generated by the project and will have the right to designate the
name of the project as well as the boat.
"A primary objective is to
promote the Swedish Match name both internally and
externally," Göran Lindén notes. "But equally
important are the opportunities given to generate business and
create contacts, with priority on our customers but also other
important commercial interests."
"Our financial commitment to
the project amounts to SEK 65 million that, as a result of the
duration of the project, can be distributed over the 1996, 1997
and 1998 fiscal years," says Lars Elmenius, Executive Vice
President of Swedish Match. "The greatest part of our total
investment will be made through use of funds that would otherwise
have been allocated for more traditional image-building and
marketing."
Good experience from last
summer’s co-operation and Swedish Match Cup
Swedish Match’s decision to invest in the Whitbread project
was made following evaluation of the commercial benefits as well
as the co-operation with Krantz/Nilson Team from last
summer’s project involving the Grand Mistral boat "Very
Bright".
Along with the participation in
the Around Gotland race, the summer project featured
participation in the Swedish Match Baltic Cup Race between
Stockholm and St. Petersburg, in competition with the Russian
Grand Mistral boat. The summer project also consisted largely of
exhibition sailings in Russia and Sweden, as well as commercial
sailings for important business relations to the various partners
in the summer project.
"We also have good experience
from the successful last three years’ Swedish Match Cup, one
of the races included in the World Cup in match racing,"
Lars Elmenius notes. "As a result of an expanded involvement
in sailing, we are now making a further claim on the marine theme
in our image-building and marketing."
Joint decision on participation
in the 1997-98 Whitbread
"A Whitbread project is a commercial project with a
foundation in sports," says Roger Nilson, who heads the
project within Krantz/Nilson Team. "Therefore, we always
have to create the best sporting and commercial conditions for
our projects."
Where The Card project and the
1989-90 Whitbread was concerned, the main choice facing the
Krantz/Nilson Team was not selection of boat, but the selection
of rigging. The choice of two masts rather than one became a
strategic sports decision with important commercial consequences.
In connection with the Intrum Justitia project and participation
in the 1993-94 Whitbread, the choice was between a Maxiboat or a
W60 boat.
"This time, we have mainly
focused on which of the two round-the-world sailing competitions
to participate in, the Whitbread or the Grand Mistral", says
Roger Nilson. "We aimed for the Whitbread at an early stage,
without excluding the Grand Mistral."
"This was one reason why last
summer’s project was implemented with a Grand Mistral
boat," says Gunnar "Gurra" Krantz, Sports Manager
and Skipper of Krantz/Nilson Team. "We wanted to wait before
deciding which of the competitions to participate in, and
simultaneously to use the summer to test and evaluate a Grand
Mistral boat."
"Together with Swedish Match
the decision was taken to participate in the Whitbread",
adds Roger Nilson. "This because the race offers the
greatest commercial potential, in particular as a result of the
increased television exposure that has been contracted. Another
reason is that the Whitbread offers the greatest sporting
competition in the form of skippers as Lawrie Smith in one of
EF’s boats and Chris Dickinson, in the Toshiba-project boat
organized by Dennis Connor.
Whitbread 1997-98 - New rules
The Whitbread Round The World Race is a eight-month,
round-the-world sailing competition. The race takes place every
fourth year, with the start in September and the completion of
the final leg in May.
A number of changes will be
implemented in 1997-98 Whitbread with respect both to its
sporting content and commercial interests. For the first time,
only W60 boats will be permitted to participate, and overall
victory will be decided according to a new, more equitable point
scoring system for each leg rather than the previous formula
which was based on elapsed time sailed. This means that you can
win the entire race despite a poor result or sustaining damage on
the boat in one of the legs.
The Whitbread race was subdivided
into six legs, but 1997-98 will consist of nine. The intermediate
routes entail approximately 120 days at sea and encompasses about
32,000 nautical miles.
The race begins in September 1997
off Southampton, England, with the first leg to be completed in
Capetown. The subsequent legs are by way of Freemantle and
Sydney, Australia, and Auckland, New Zealand.
The Pacific and South Atlantic are
to be crossed this time with a new sub-goal, Sao Sebastiao,
outside Sao Paulo, which broadens interest and creates
possibilities for market activities in Brazil. The following leg
concludes, as earlier, in Fort Lauderdale, Florida, but
Baltimore, Maryland, on the U.S. east coast, has been added as a
new intermediate stop raising possibilities of commercial
exploitation in the U.S.
The North Atlantic is to be
crossed via a new stopover at La Rochelle, France, stimulating
interest in the Whitbread in France and promoting prospects of
French market activities. The new French stopover also entails
the assembling of the boats prior to the final leg. This will be
of short duration, with a tighter-paced and more predictable
finish date, planned for May 24, 1998.
Krantz/Nilson Team
The Krantz/Nilson Team has been formed to initiate and conduct a
project for participation in the Whitbread Round The World Race,
in close co-operation with commercial partners.
The individuals behind the project
initiative for Whitbread 1997-98 are Gunnar Krantz and Roger
Nilson, as well as Göran Ekdahl, Odd Michael Stavnes and Lars
Åhrén, who also comprise the Board of the company which has now
been formed for the Krantz/Nilson Team. Odd Michael Stavnes has
been named president of this company.
For additional information:
Roland Perlström SVP, Public
Relations, Swedish Match tel +46-8- 658 0436
Roger Nilson Project leader &
Co-skipper/navigator tel +46-70-797 9801
Gunnar "Gurra" Krantz
Sports Manager and Skipper tel +46-70-797 8902