World Cup a boon to beer sales |
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World Cup a boon to beer sales |
2006-07-20 12:39:48 |
| autor: Tereza Tomickova, 26. 06. 2006 |
The FIFA World Cup tournament in Germany may have only entered into the second half, with the playoffs in late June and early July, but many Czech businesses have already come up with predictions of final counts. There will be no losers on the business front.
?There?s record interest, there will be record profits [for beer producers],? said Jan Veselý, chairman of the Czech Beer and Malt Association (?SPAS).
And breweries weren?t the only ones to capitalize on the football fever in this country. The appearance of the Czech team in the World Cup, for the first time in 16 years, improved the tournament?s boost to several local business sectors.
Moments after the Czech team?s impressive start with a 3-0 win over the United States, the official Czech sponsors opened talks about prolonging their partnership with the national team, said Jan Kinda, director of STES, the marketing arm of the Czech Soccer Association (?MFS).
?They were so impressed with the Czech team and the public response to its performance that we didn?t need to keep convincing them to continue subsidizing the national team,? Kinda said.
Kinda revealed that the Czech team?s standing partners mobile phone company T-Mobile Czech Republic and South Korean carmaker Hyundai Motor Company were prepared to prolong their sponsorship by another two years.
The Czech team?s results in the tournament were crucial for many local businesses.
In contrast to most other sectors, local betting shops that were enjoying unprecedented turnovers (see related sidebar) were not intimidated by the Czech team?s losses.
Beer battles
Along with breweries, bars and restaurant are hoping for the longest possible participation of the Czech team in the World Cup.
?The longer the Czechs will remain in the tournament, the bigger the interest and the more beer parties we can expect,? said Alexej Bechtin, spokesman for Plze?ský Prazdroj, maker of Pilsner Urquell.
He added that the World Cup was expected to increase beer sales in this country by about 2 percent.
?Based on our research, beer consumption in this country during the World Cup rises by about 5,500 hectoliters per week. Average weekly consumption of beer in this country stood at 300,000 hectoliters per week in 2005,? Bechtin added.
While the results of the Czech team are essential to the country?s minor breweries, which are counting mainly on domestic consumption, ma jor breweries such as Prazdroj and Bud?jovický Budvar attempted to capitalize on the traditionally high exports of Czech beer to the World Cup?s venue, Germany.
Exports of Czech beer to Germany have doubled over the past few years. While Czech breweries exported 437 hectoliters of beer to Germany in 2000, the amount rose to about 900 hectoliters by 2004.
Before the World Cup, Budvar renewed its cooperation with some German distributors in order to expand its German channels. ?We couldn?t miss this opportunity,? said Budvar?s director, Ji?í Bo?ek.
Meanwhile, Prazdroj signed contracts with several travel agencies that were organizing football trips to Germany, some of which offered the beer on board their buses.
Bechtin said that thanks to Pilsner?s exports overseas, the brand was also expected to be in demand by U.S. or Canadian visitors to Germany.
Ironically, sales of Czech beer in Germany could be further boosted by the official partnership of U.S. beer giant Anheuser-Busch and the FIFA World Cup, said Veselý.
?The Germans are proud beer consumers, and they aren?t happy when being pushed to drink just one beer,? he pointed out. |
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