World Cup expected to drive one billion beer sales, offering hope to struggling brewers

Global beer consumption is poised for a significant boost during the upcoming World Cup, with experts predicting a 3% increase that equates to roughly one billion beers. This surge offers a much-needed glimmer of hope for the brewing industry, which has been grappling with inflation, waning demand, and concerns about its long-term decline.

The tournament's structure, featuring 104 matches and 48 teams, is expected to lay the groundwork for what is being called the "wettest" World Cup in history. This is a stark contrast to the 2022 World Cup in Qatar, where alcohol sales were abruptly prohibited on stadium grounds just before the event, significantly impacting sales.

However, experts caution that major brewing companies might be making risky bets. Sarah Simon, an analyst at investment bank Morgan Stanley, points out the challenge: "The problem is that companies cannot know in advance which countries will go far in the tournament when they ship their products." This uncertainty arises because alcohol consumption often correlates with a nation's success in the competition.

Despite these risks, companies in the brewing sector are hopeful that a strong summer season could reignite investor interest. The market has seen a downturn due to rising costs and a consumer base increasingly focused on healthy lifestyles. A successful World Cup could provide the much-needed momentum to revitalize the industry.

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The problem is that companies cannot know in advance which countries will go far in the tournament when they ship their products.