Back to top

KO, BUD & More to Score With World Cup Sponsorships

Read MoreHide Full Article

The 2018 FIFA World Cup kicks off this week in Russia. As 32 teams fight it out for the coveted trophy over a period of one month, FIFA will be banking on its sponsors for the much-needed stimulus after a poor financial showing for two consecutive years.

Goes without saying, FIFA World Cup will turn out to be biggest playground for both FIFA and the tournament’s sponsors for helping each other make the most of opportunity. And it’s not only the event’s sponsors but also a number of others brands that are set to gain from this global extravaganza.

Sponsors Ready for the Flag Off

The warmup to the finals is already underway with every sponsor designing ads around the 2018 FIFA World Cup. Barring a few, FIFA has managed to rope in most of its long-time partners for this year’s tournament. The Coca-Cola Company (KO - Free Report) , Adidas AG (ADDYY - Free Report) , VISA Inc. (V - Free Report) , Anheuser-Busch InBev SA/NV (BUD - Free Report) and McDonald’s Corporation (MCD - Free Report) continue to be FIFA’s loyal sponsors.

In 2016, FIFA incurred a loss of $368 million, followed by a loss of $192 million in 2017. This does not however take anything away from the spectacle and FIFA is hugely anticipating profits this year. According to marketing agency, Zenith, this edition of the world cup will add $2.4 billion to the global advertisement market.

Expectedly, sponsors are not hesitating to shell out generously on making their brands visible over the next 30 days. Coca-Cola has spent more than two years in designing its Being Ready campaign. Visa is banking on the popularity of Swedish soccer star Zlatan Ibrahimovic to promote its contactless payment cards. Visa has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beer favorite Budwiser will be unveiling its biggest and most-expensive campaign ever during this year’s tournament. Adidas too has roped in a start-studded cast comprising sporting heroes, musicians and a host of pop icons for its Crete the Answer campaign.

Sponsors to Gain From Brand Visibility

Sponsors will be focusing on brand visibility with the aim of reaching out to more buyers. Given that world cup football is a summer affair, Coca-Cola will try to cash in on this opportunity. Adidas too has its hopes high, being the jersey and kit sponsor of 12 of the participating teams. Budwiser and McDonald’s are typically the food and beverage associated with any sporting event.

According to Morgan Stanley, beer sales volume get a 2-3% boost in host countries. Moreover, Anheuser-Busch recently said that it expects annual sales volumes to increase between 0.5-1% in the finalists Brazil and Argentina.

Similarly, Adidas, which introduces new balls every year, will be flaunting its latest brand Telstar 18 this time. Visa, on the other hand, will be stressing more on enhancing the overall football-watching experience. Visa account holders will be getting benefits of exclusive access to tickets via Visa-sponsored pre-sale events.

From the Galleries   

It’s not only that the FIFA World Cup sponsors stand to gain from the tournament. Those on the side bench too will get a chance to make their presence felt on the field. Nike, Inc. (NKE - Free Report) is the kit and jersey sponsor of 10 of the 32 participating countries including big names like Brazil, France and England. This will certainly give the company enough brand visibility.

Carlsberg A/S (CABGY - Free Report) is the market leader in beers in Russia and will try to take this opportunity to score high this time. Another big winner will be the broadcasters. Twenty-First Century Fox, Inc.’s (FOXA - Free Report) Fox Sports is the official broadcaster, while Telemundo, owned by Comcast Corporation (CMCSA - Free Report) , will be airing the matches in South America.

Besides, streaming media players too will play an important role in this year’s world cup. Amazon.com, Inc.’s (AMZN - Free Report) Amazon Fire TV and Apple Inc.’s (AAPL - Free Report) Apple TV 4K are expected to attract a large number of viewers this year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

More from Zacks Analyst Blog

You May Like

Published in