Analysis - AmBev will hope for permanent World Cup boost
AmBev will be eyeing a major boost from the World Cup
The Anheuser-Busch InBev subsidiary, which is the major beer sponsor of the tournament, already has 97% of Brazil's beer market profit pool, according to Bernstein Research.
But, analyst Trevor Stirling said: “We expect AmBev in Brazil to take maximum advantage of its privileged position with both Brahma and Budweiser to try to persuade consumers to reappraise the brands, with what they hope will be permanent share gains."
AmBev's volumes have been falling this year, but recovered in Q2.
Stirling suggested that AmBev's competitors may try to copy the marketing tactics used by brewers at previous tournaments. “We expect attempts at guerrilla marketing by rival brewers,” he said.
Meanwhile, Striling predicted that Brazil's beer market is likely to get a 3% volumes boost across the year from the World Cup. Annual volumes from the tournament could rise by around 1.7%, while a “strong” performance from the national team should lift consumption another 1.3%, Stirling predicted.
Anheuser-Busch InBev Germany’s strategic direction is mainly in line with the international parent company and the company does not have a lot of room for self-governance. Partial autonomy is granted,...
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