Brewers do not expect to benefit from Football World Cup
The prospect of thousands of thirsty soccer fans flocking to Russia for this summer’s World Cup should boost beer sales, yet brewers see little reason to be optimistic.
Beer sales in Russia have fallen by around a third over the past decade on the back of rising duties and restrictions on sales and advertising, and brewers do not think this long-term trend can be reversed, even if only once this year.
Recent government concessions for the World Cup, including the permission to sell beer at stadiums and fan zones, as well as an unrelated decision not to hike excise this year, have done little to brighten the outlook.
If any company stands to benefit from an upsurge in beer demand during the World Cup, which kicks off in Moscow on 14 June 2018 when the Russian national team will play against Saudi Arabia, it is AB-InBev, the world’s major brewer.
AB-InBev’s sponsorship of the tournament gives the group, whose brands range from Budweiser, Stella Artois and Hoegaarden to local brands such as Sibirskaya Korona and Klinskoye, exclusive rights to advertise and sell its beverages at and near stadiums.
However, last year’s Confederations Cup contest – featuring the champions of world soccer's six regions plus the World Cup holders and hosts Russia – had not set a strong precedent in terms of increased beer sales, it was reported.
That’s why brewers in Russia do not seem to have high hopes for this year’s matches.
The Russian beer market was the world’s fifth largest behind China, the US, Brazil and Germany in 2016, according to the Barth Report. Beer consumption dropped by around five percent in 2017, according to the Russian Brewers’ Union, despite forecasts for growth of three to five percent.
