Summer Olympics, Other Sports Could Boost Beer Sales in U.S. and Globally

Slowing inflation is also a boon to the category.

May 09, 2024

Global brewers are poised for a summer of big beer sales bolstered by the Olympics and slowing inflation, reported Reuters.

After several quarters of decline, some of the world's largest brewers, including Heineken and Carlsberg, reported growth in the first quarter—the first quarterly growth in over a year for some companies like Heineken.

Anheuser-Busch InBev, meanwhile, reported a smaller-than-expected drop in volumes on Wednesday. AB InBev CFO Fernando Tennenbaum said the company was already growing volumes in most of its markets globally.

The summer Olympics in Paris and the 2024 European Championship football tournament will help drive beer sales.

“'Alongside potentially less of the extreme weather that dented sales last year, these events should support volumes even in mature beer regions like western Europe,' Carlsberg chief executive Jacob Aarup-Andersen told journalists at the company's first-quarter results,” wrote Reuters.

Slowing inflation after price spikes should also help beer volume growth as companies ease their price increases. Beer companies were forced to increase prices rapidly to cover rising costs for everything from barley to aluminum, which impacted the amount of beer they sold in recent years.

"Price increases have dominated as a source of growth in the last two years ... We're now in a situation where we hopefully see volumes taking over as a revenue driver," Berndt Maisch, a fund manager at Carlsberg investor Tresides Asset Management, told Reuters.

Reuters also reported that Anheuser-Busch Inbev enjoyed a better than expected first quarter in the United States.