Beer Sales Are Weak. The World Cup Could Boost Them. -- Barrons.com

Dow Jones06-11

By Evie Liu

The FIFA World Cup kicks off Thursday. Soccer fans will fill stadiums across North America over the next month, cheering on their teams and enjoying a cold one.

For beer companies, though, the more important venue is the living room -- and the bar stool.

FIFA, soccer's global governing body, expects more than five million fans to attend matches in person, with hundreds of millions watching games globally. A Numerator survey found that 27% of U.S. World Cup watchers expect to watch from a bar, restaurant or public space, while 24% plan to host a watch party. That creates more opportunity for drinking.

Beer companies could use the help. U.S. beer demand has been under pressure for years as younger consumers shift toward hard seltzers, cannabis, and other nonalcohol options. Even beer lovers are buying less than they used to as more consumers try to trim calories and cut back on discretionary spending amid inflation pressure.

When the U.S. hosted the World Cup last time in 1994, beer shipments rose by about 0.8 million barrels versus normalized trend, according to Bank of America analyst Peter Galbo. The lift was spread from May through August, suggesting distributors built inventory before the matches and replenished afterward, rather than seeing a narrow spike only on match days.

Beer companies are working to capture the opportunity. Molson Coors said it's making one of its largest media investments in years around the World Cup, including advertising during the match broadcast, local fan events, podcasts, and partnership with social-media influencers.

AB InBev CEO Michel Doukeris said the company has a "good history" on FIFA-generated beer consumption, noting that the tournament historically contributes to anywhere from 0.2 to 0.3 percentage points of the year volume, normally coming through in the second and third quarter.

Still, the event is unlikely to reverse the industry's deeper problems from stretched consumers, health-conscious trends, and increasingly diverse social spending beyond beer. Despite the World Cup boost, Galbo still expects U.S. beer shipments to fall 2.6% in 2026, as roughly 5.6 million barrels of lost demand more than offset the tournament's benefit.

"The World Cup could lead to a transitory bump in demand, but will do little to change the long-term trend," wrote BNP Paribas analyst Kevin Grundy in a recent note.

The analyst pointed out that so far in the second quarter, U.S. beer, spirits, and wine volumes are all down mid-single digits from a year ago. He has cut his earnings estimates for alcohol companies like Brown-Forman, Molson Coors, and Constellation Brands, and thinks the Wall Street consensus is too optimistic.

Write to Evie Liu at evie.liu@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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June 10, 2026 15:32 ET (19:32 GMT)

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