England’s National Team Replaces Long-Time Official Beer Sponsor


Budweiser (BUD) has announced that it will replace Carlsberg (CABGY) as the official beer of the England senior men’s soccer team following the ’18 Russia World Cup, ending CABGY’s 22-year relationship with The Three Lions. The AB Inbev subsidiary will also become the official pour (includes premium brands) of Wembley Stadium connected by EE. Terms of the deal were not disclosed but, it’s being marketed as the largest official beer partnership in the Football Association’s history (154 years). BUD also stated it would be extending its partnership with The Emirates FA Cup (a domestic knockout competition) and said that it will continue to heavily invest ($1.8 million since ’12) in local grassroots football initiatives.

Howie Long-Short: AB Inbev announced on March 1st its best FY earnings report in 3 years; FY17 EPS increased 42.8% YOY to $4.04. Should the board approve a proposed dividend on April 25th, the total dividend for FY17 would be $4.44. For reference purposes, BUD closed at $110.63/share on 5/3. As a brand, Budweiser grew global revenue 4.1% YOY in 2017. It’s popularity in the U.K. (+16 YOY in ’16) helped the company achieve double-digit top-line growth in that market. It must be noted that for the 5 year period beginning in ’12, BUD’s revenue CAGR of 4.6% exceeds that of all PMCG peers.

Fan Marino: BUD’s first World Cup as an official sponsor of the England senior men’s soccer team will come in 2022, scheduled to be played in Qatar. While the tournament is certain to occur in 4 years, it’s no longer guaranteed the games will be played in the middle east; certainly, not if Saudi Arabia sports minister Turki Al Shiekh has his way. Al Shiekh believes Qatar bought votes during the selection process in 2010. If those suspicions are proven correct, Shiekh would like the competition moved to either England or the U.S; either location would work for BUD drinkers.

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