The great circus, or Formula 1, is characterised by being a motorsport filled with glamour, fashion, and extensive marketing from major brands to ensure financial viability. Therefore, there are a large number of “sponsors” that form part of this grand spectacle.
Red Bull is known for an energy drink sold in 172 countries and stands as the prime example of brand presence and promotion through the use of marketing across various dimensions. Thus, their Formula 1 team is no exception, having been a top team for 15 years, striving to have the fastest car, surpassing speed icons such as Mercedes, Ferrari, and McLaren.
Our compatriot, Sergio Pérez, is in his third year with the team (despite the major controversies currently surrounding him), competing at the highest level, a feat not seen for decades. This has led to an increased brand valuation in both Mexico and Latin America, with a broader advertising reach due to the sponsorships behind him and his team, which are primarily listed on NASDAQ and NYSE.
Below, we will compile a list of the main companies that we see represented in the team’s colours each race, aiming to understand the vast scope of this business.
“Figure 1. Market Value of each sponsoring company:”
Note: Figures expressed in billions of dollars updated as of 23-October-2023.
Source: investing.com
ORACLE
The main sponsor of this team, Oracle is considered one of the largest global software development and cloud service companies, focusing on IT management solutions for businesses. Currently, Oracle ranks among the top 20 global tech companies and is expected to play a key role in the development of AI for businesses.
AMERICA MOVIL
Owned by Mexico’s most successful businessman, Carlos Slim, who has been the primary backer of Checo since his F1 beginnings. This company holds brands like Telcel, Telmex, and Claro, operating in the telecommunications sector. It’s rated as the largest telecoms company in Latin America and ranks among the top 10 globally, trading mainly on the Mexican Stock Exchange and the NYSE.
PUMA
A German brand listed on the Stoxx 600, Puma is the third-largest sportswear brand in the world, behind Adidas and Nike. They are the primary uniform supplier for the team, so you’ll likely see plenty of F1 team merchandise from this brand.
WALMART
This conglomerate is once again involved in sports sponsorships (recall its owners own the NFL’s Denver Broncos), showcasing its dominance as one of the world’s most valuable brands. It has the most supermarkets globally and leads in basic consumer goods sales, also trading on the NYSE and listed in major indices like the S&P 100 US and Global.
MOBIL 1
The well-known car oil, popular among vehicle owners, is a part of the oil titan ExxonMobil. This company is the USA’s largest in its sector and ranks within the top 5 globally in sales volume and revenue in the energy sector. They recently acquired Pioneer Natural Resources, boosting their oil and gas production capacity for the coming years. The company also trades on the Dow Jones Industrial Average.
HONDA
Known for producing high-quality engines and vehicles across its various brands, Honda stands as the second-largest automaker in Japan and seventh globally. Besides sponsoring the team, they also power the RB19 (RB’s 2023 race car), which motorsport experts regard as one of the most dominant vehicles in F1 history. Beyond positive publicity for Honda, could this be a display of their technological prowess against competitors like VW or Toyota?
HEWLETT PACKARD
Better known as HP, it’s a leading company in manufacturing and selling computers, laptops, and printers globally. Despite being one of the significant tech companies, it lags behind in brand power compared to Apple, Microsoft, or Oracle. HP has its roots in Palo Alto, California and played a key role in the computer development era of the 80s and 90s, making it a pioneering brand in the computing industry.
ZOOM
The renowned software or app used for video calls or remote meetings was launched in 2012 and gained prominence in 2020 during the pandemic as a solution for remote work due to social distancing restrictions. It was one of the companies that benefited most during the COVID-19 era, having a significant social impact as part of the revolution in social relations.
As can be observed, these multinational corporations associated with the F1 team are part of our daily activities or compete with products we use. It’s evident that not just anyone can join the elite world of motorsport.
For additional topics related to economics, markets, and personal finance, contact me directly at:
Email: agarcia@hedeker.com
LinkedIn: Alberto García Medina
HEDEKER GROUP is an advisory firm specializing in international investments, aiming to educate, protect, and grow the assets of savers and investors in our country. Consult us to learn more about what we can achieve.
