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Analysis - AmBev will hope for permanent World Cup boost

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AmBev is likely to use next year's FIFA World Cup football tournament in Brazil to get consumers to “reappraise” its Brahma and Budweiser brands, an analyst has suggested.

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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."

The brewer's brands account for around 65% of Brazil's beer volumes, followed by Brasil Kirin (11%), Petropolis (10%) and Heineken (9%).

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.


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