The World Cup season is a huge golden egg.
The world’s biggest sporting event does not have the ability to make or break companies.
According to media company Zenith, this year’s tournament will bring an additional 2.4 billion USD into the global advertising market.
Wooden corner decoration to welcome the 2018 FIFA World Cup in the center of Moscow (Russia).
The 2018 World Cup is expected to reach about 3.5 billion viewers when broadcast globally.
Brokers also know that investors will be busy watching the matches so trading volume will be less.
According to Reuters data, the monthly trading volume of the Bovespa (Brazil) index hit a two-year low in June 2014, during the World Cup in the country.
Not only stocks, the beer industry is also full of busyness and expectations.
Through the previous four seasons, Morgan Stanley’s analysis found that beer consumption typically increases by 2-3% in host countries within a World Cup year.
Carlsberg, the market leader in Russia, and ABInBev’s Budweiser, a global sponsor, are the big winners from the tournament.
ABInBev expects the World Cup to increase annual revenue by 0.5-1% if Brazil or Argentina reach the final.
“We think Brazil vs Mexico is the best final to maximize benefits for ABInBev,” Morgan Stanley analysts said.
The sudden increase in beer consumption thanks to the tournament helped the shares of Heineken and ABInBev – two popular companies in Latin America – outperform other companies during the World Cup four years ago.
In the UK, pub chains such as Greene King are also winners.
The World Cup is also an opportunity for the betting industry.
“The deeper the national team goes, the more people bet emotionally rather than rationally,” said Laith Khalaf, a senior analyst at Hargreaves.
The world’s biggest sportswear brands are also competing, with Nike dominating the field, supplying apparel to 10 countries, including Brazil, France and the UK.
Chi Chan, who manages euro zone equity investments at Hermes Investment Management, chose to invest in Nike’s competitor Adidas, because the company is spending heavily to try to stay ahead in this battle.
Nike has sponsored more teams, the first in Brazil in 2014, but Adidas is no less.
According to Chan, taking into account the current odds, Adidas has a 52% chance of sponsoring the winning team.