Monday 25 March 2019

Sochi Winter Olympics: Coke, Anheuser-Busch seek a win in emerging market drive

Market: Sochi Winter Games
Market: Sochi Winter Games
John Mulligan

John Mulligan

Coca-Cola and Budweiser owner Anheuser-Busch are set to be the big winners in emerging markets from their sponsorship of the Winter Olympics and this summer's World Cup in Brazil, according to ratings agency Moody's.

With both events taking place in what are classed as emerging markets, sponsors have the chance to make "meaningful inroads" in the host countries, said Moody's.

"This year the Winter Olympics in Russia and the World Cup in Brazil will provide once-in-four-years opportunities for sponsors to get better advertising exposure than their competitors, boosting local sales and potentially lifting their market shares," said Moody's senior vice-president Linda Montag.

"Beverage makers Coca-Cola Company and Anheuser-Busch will be the biggest beneficiaries from the advertising they create around these events," she said.

Moody's pointed out that Coca-Cola was the exclusive soft drink partner of the Winter Olympics and one of its biggest advertisers. Top-level Olympic sponsors each pay an estimated $100m (€73m) in fees.

"Russia accounts for only 2pc of Coca-Cola's global sales, so represents a major growth opportunity for the company," said Ms Montag.

She said that the soft drinks maker and Anheuser-Busch were the drinks manufacturers best positioned to benefit from their sponsorship of the World Cup this summer.

The World Cup is the most-watched sporting event in the world, including in key emerging markets such as China, Mexico, Indonesia and Russia.

Anheuser-Busch should see annual sales go up at least 2pc in Brazil, according to Moody's.

Irish Independent

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