The World Cup alcohol ban has not been good news for Anheuser-Busch brand (BUDFF) .
The iconic beer brand has been a sponsor of the global soccer competition FIFA since 1986 and has, over the last decade, allocated around $75 million to be its exclusive beer seller every four years.
This year's tournament is taking place in Qatar, a Gulf nation where one can only get alcohol in specific hotels and bars, while public consumption can be punished by years in prison.
While it was widely believed that the host country would work out rules that would allow international visitors to drink in specifically designated fan zones, Qatar's authorities reversed course, making an announcement Nov 18. that all alcohol would be banned during the World Cup.
Anheuser-Busch shares have been consistent since the announcement -- on Monday afternoon, they were up 1.25% at $55.40.
New Day, New Beer Promises
While Bud Zero, Budweiser's alcohol-free option, will still be sold at World Cup stadiums, the sudden turnaround is a massive blow to the 75 million euro or roughly $76.76 million USD budget that Anheuser-Busch allocated to the event.
However, Budweiser converted the unexpected situation into an opportunity by choosing to give away all the beer.
"New Day, New Tweet," Budweiser wrote on Twitter on Saturday. "Winning Country gets the Buds. Who will get them?"
The beer company had previously written "well, this is awkward" before the tweet was deleted.
While the announcement may add even more motivation and fan excitement to the competition, it is a last-minute pivot after Qatar's zero-hour course change -- the alcohol ban was announced just two days before the World Cup began on Nov. 20.
Details on how such a donation would look (a massive party in the winning country's capital square?) have also been sparse.
"Some of the planned stadium activations cannot move forward due to circumstances beyond our control," an Anheuser-Busch InBev spokesperson told the New York Post. “As partners of FIFA for over three decades, we look forward to our activations of FIFA World Cup campaigns around the world to celebrate football with our consumers."
Is a Lawsuit Also Looming?
Online, both analysts and fans debated whether Anheuser-Busch would try to sue FIFA and Qatar over the losses it incurred from the last-minute announcement. While there were many "enjoy court" comments, legal experts cast doubt on such a lawsuit's viability.
"It's rare for sponsors to sue rights holders, especially where there is an ongoing long-term relationship," London-based lawyer Alex Kelham told the Irish Times. "It's far more likely that this issue will be resolved internally."
The World Cup has also faced criticism for other aspects of the event -- in particular, the conditions faced by migrant workers brought in to build the infrastructure for the World Cup. The Guardian had previously reported that over 6,500 workers from India, Pakistan, Nepal, Bangladesh, and Sri Lanka died in the decade since Qatar was chosen to host the tournament.
FIFA President Gianni Infantino also came under fire for a controversial speech in which he said he "feel[s] like a migrant worker" and claimed European countries had no authority to criticize Qatar due to a past of colonialism.
In the same speech, Infantino also defended Qatar's decision to ban alcohol at FIFA stadiums.
"If for three hours a day, you cannot drink a beer, you will survive," Infantino said, referencing equivalent stadium bans in countries like France and Portugal.
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