6th September, 2013
Brazilian beer sales are expected to gain a $330 million boost when the soccer World Cup kicks off next year, according to a report by research firm Bernstein.
This 3 per cent increase in yearly beer sales will be driven by the millions of fans flocking to venues across the South American country as the Samba soccer World Cup effect takes hold, Bernstein wrote in a research note.
The “historical strength” of Brazil’s national team and expectation of success in the 2014 World Cup is also likely to impact beer sales.
“The World Cup provides more opportunity for consumers to go out and drink beer together and the games that Brazil will be playing are the prime focus of attention, given the country is a strong soccer nation,” Trevor Stirling, European beverages analyst at Bernstein told CNBC.
“You can imagine if Brazil were to get knocked out in the early stages it would be a national tragedy.”
Beer sales have risen on average 1.7 per cent in World Cup host nations. That is better than the 1.1 per cent boost that the European Championship gives.
But spectator countries do not receive a “significant” yearly boost, according to the note. During the month of the tournament, which takes place next year between 12 June and 13 July, beer sales in the U.K. are likely to receive a 4 percent boost, followed by a “hangover effect” where consumption will drop.
“This could be because teams get knocked out early from other countries, or people use up their budgets they have in the month of the tournament, then they cut back in the months after to make up for it,” Stirling said.
Drinks giant AB InBev is expected to benefit most from the sales uplift in Brazil. Local brands Skol, Brahma and Antarctica could do well, with global beer brand Budweiser also profiting. The beverage company is also the sponsor of the tournament and already gets 97 per cent of Brazil’s beer market profits, according to Bernstein.
Around 3.3 million tickets have already gone on sale for the 2014 World Cup. Some Brazilian citizens will be able to purchase tickets for as low as $15, while prices for the final at the Maracana Stadium in Rio de Janeiro average at around $990.