In This Article:
The world’s leading brewer, Anheuser-Busch InBev SA/NV BUD, aka AB InBev, has elevated its collaboration with FIFA, becoming the Official Beer Partner for the FIFA Club World Cup 2025, marking a significant milestone in its nearly 40-year relationship with the organization.
The tournament set to take place in the United States from June 15, 2025, to July 13, 2025, will feature 32 top football clubs competing across 11 host cities, signaling a new era in global club football. AB InBev is also the official sponsor of the FIFA World Cup 2026, to be hosted across 16 cities in Canada, Mexico and the United States.
Insights Into BUD's Initiatives
The expanded partnership supports AB InBev's strategy of using its top brands and major events to connect with consumers. Leading brands like Budweiser and Michelob ULTRA will drive the partnership, with local beers included in some markets. Under the agreement, BUD will offer unique brand experiences, sponsor the 'Player of the Match Award,' and share tournament highlights with fans of legal drinking age.
The continued and expanded partnership between AB InBev and FIFA reinforces the brewer’s strong global brand presence and strengthens its association with one of the world's most iconic sports events. Per the BUD management, this partnership with the FIFA Club World Cup continues its legacy of bringing beer and sports together for fans around the world, creating more moments of celebration and cheers.
The expanded presence in key U.S. markets significantly boosts its domestic visibility. The multi-city exposure allows the company to engage directly with local audiences, reinforce its brand presence in the competitive U.S. market, and drive growth by leveraging regional fan bases.
What’s More
AB InBev has been gaining from continued consumer demand for its brand portfolio. The company’s pricing actions, continued premiumization and other revenue-management initiatives have been aiding its revenues. BUD has been focused on expanding its Beyond Beer portfolio, which has also been aiding the top line. Notably, the Beyond Beer portfolio contributed $365 million to the total revenues in the third quarter.
AB InBev has been keen on making investments in its portfolio over the years, as well as rapidly growing its digital platform, including BEES and Zé Delivery. Its digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in the third quarter. The company noted that the monthly active user base of BEES reached 3.9 million users. Its omnichannel, direct-to-consumer ecosystem of digital and physical products generated $350 million in revenues.
However, BUD continues to face significant headwinds to unfavorable changes in taxes. In many regions, these taxes constitute a major chunk of the cost of beer that is charged to customers. Thus, any rise in excise taxes or indirect taxes on AB InBev’s products is likely to shift consumers’ preferences to other beverages and weigh upon the overall consumption of the company’s products, thus hurting its revenues and margins.
Shares of this Zacks Rank #3 (Hold) company have lost 11.4% in the past three months compared with the industry’s decline of 8.5%.