In 1987, the Canadian Grand Prix was abruptly canceled due to a rivalry between two potential title sponsors, both Canadian breweries.
Labatt, which had been the title sponsor until 1987, held the rights to the Circuit Gilles Villeneuve, while Molson possessed the rights to the Grand Prix itself, leading to a legal confrontation that threatened to end North America’s longest-running F1 event.
History of the Canadian Grand Prix
The journey of Canada as a host for Formula 1 World Championship races began on August 27, 1967, when it held its first event at the Mosport International Raceway near Bowmanville, Ontario, during the Canadian Centennial celebrations.
This original one-off race evolved into an annual classic, moving from Mont-Tremblant to Mosport, before finally finding a permanent venue at Montreal’s Circuit Ile Notre-Dame, now known as Circuit Gilles Villeneuve.
Since its inclusion in the F1 calendar, the event has continued almost yearly, with exceptions occurring in 1975, 2009, and due to the COVID-19 pandemic in 2020 and 2021. Notably, 1987 marked a significant disruption due to a sponsorship dispute.
The Sponsorship Conflict
As major breweries in Canada, Labatt and Molson were both eager to sponsor Formula 1 in the late 1980s. Labatt, being based in Ontario, assumed a natural connection to the Ontario-centric F1 events, while Molson began to challenge Labatt’s dominance in the market.
Molson’s success led to them securing various sponsorship deals, including the rights to Can-Am races. However, Labatt retaliated by launching a beer called “Grand Prix” to further align itself with the F1 brand, intensifying the brewing rivalry.
1987: The Beer Wars Escalate
The conflict escalated when Molson expressed interest in holding a future IndyCar race at the Circuit Gilles Villeneuve, making it known that they believed they could host without government subsidies, a jab at Labatt’s financial struggles with the Grand Prix.
This led to a court battle in January 1987, where a lower court initially permitted Molson’s deal, but Labatt’s appeal resulted in a reversal of that decision. Amid growing tensions and financial strains, Ecclestone considered removing the Canadian Grand Prix from the calendar altogether.
Resolution and New Era
Eventually, Labatt retracted its lawsuit by December 1987, allowing Molson to assume full control over the Grand Prix. Following this decision, the city of Montreal collaborated with Molson to prepare for the 1988 event, which included significant improvements to the Circuit Gilles Villeneuve.
The continuation of the Canadian Grand Prix marked the beginning of a new chapter. Molson invested in enhancements to facilities and infrastructure, leading into a reestablished presence in the Formula 1 calendar.
