UK pubs and bars experienced a significant boost as consumers flocked to watch England's victory over Mexico in the early hours of Monday morning. According to data from Heineken UK from its managed operator pubs, sales values increased by 67% year-on-year, with cider sales up 127%, lager rising 76%, and stout increasing 44%. Within lager, Cruzcampo led with value sales up 127% in like-for-like accounts, followed by Birra Moretti at 91% and Heineken at 80%. Strongbow Dark Fruit performed particularly strongly with 116% growth, while Inch's Cider reached 111%. The British Beer & Pub Association reported that almost six million pints were sold on Sunday night, with the England vs Mexico match fuelling an extra 1.25 million pints sold. Stonegate Group, the UK's largest pub company, saw its pubs pour more than 796,000 drinks, 355,000 more than a typical Sunday.
AB InBev shares closed down over 4% in Brussels and Heineken slipped 1.4% in Amsterdam on Monday following Brazil and Mexico's World Cup exits. According to reports from CNBC TV18, the losses were attributed to the concentration of beer volume uplift coming from 'deep run' games, where Brazil was eliminated by Norway and Mexico lost to England in a five-goal thriller at Estadio Azteca in Mexico City. The early eliminations of these major markets are now expected to negatively impact beer demand for both companies, as Wall Street analysts forecast declining market expectations for the beer sector.
Morgan Stanley analysts identified AB InBev as the most exposed company due to its sales in Mexico and Brazil, while Heineken also has meaningful exposure to the Latin American markets. As reported by CNBC TV18, the analysts noted that the beer volume uplift typically comes from 'deep run' games in the World Cup tournament. AB InBev operates through six segments including North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies, with a brand portfolio featuring global brands like Budweiser, Corona and Stella Artois, as well as local champions such as Bud Light, Skol, Brahma, and Quilmes.
The negative sentiment extended beyond the major beer companies, with Constellation Brands Inc. finishing down 4.9% at its lowest level since November 20. According to CNBC TV18, Boston Beer Co. and Molson Coors Beverage Co. also closed lower, while Ambev SA, a Brazilian subsidiary of AB InBev, closed 2.5% lower in São Paulo. The market reaction reflects investor concerns about the impact of Brazil's first World Cup quarter-final failure since 1990 and Mexico's elimination by England, with the broader beer sector now facing declining market expectations following these early tournament exits.
Brazil's elimination by Norway following a brace from Erling Haaland marks the first time Brazil has failed to reach the quarter-finals of the World Cup since 1990, where they were bested by a Diego Maradona-captained Argentina. As reported by CNBC TV18, this historical context adds significance to the market impact of the loss on beer companies with substantial exposure to the Brazilian market. The significance of this milestone is further amplified by the broader market reaction, with analysts now expecting negative impact on beer demand across the sector following these early tournament exits.
