The International Olympic Committee (IOC) has recently made a significant addition to its roster of sponsors, signing a deal with Anheuser-Busch InBev (AB InBev), making it the first-ever beer brand to join the IOC's sponsorship program. The deal, which covers the next three Summer and Winter Games, was announced by the IOC and AB InBev. AB InBev, the Belgian-based brewing giant, is known for its popular brands such as Budweiser, Corona, Michelob, and Modelo.
Under the agreement, Corona Cero, the zero-alcohol version of the renowned Corona beer, will become the 'global beer sponsor of the Olympic Games,' as stated in a joint statement by the IOC and AB InBev. The exact value of the deal has not been disclosed, but it is estimated that some sponsors in the IOC's TOP (The Olympic Partner) program pay upwards of $300 million for a four-year commercial cycle.
AB InBev CEO Michel Doukeris expressed his enthusiasm for the partnership, highlighting the company's commitment to supporting sports globally and celebrating the unity that comes from bringing people together through beer and sports. This collaboration marks a significant milestone for the IOC, as beer or alcohol brands have never been associated with the global Olympic event in its 40-year history. While local organizers have often secured beer deals for specific Olympic Games, this is the first time a beer brand has become a global sponsor.
The IOC's sponsorship program, launched in 1985, has traditionally focused on technology and logistics companies that can aid Games organizers in host cities. Current partners include major companies such as Deloitte, Intel, and Toyota. It is worth noting that longtime partnerships with Coca-Cola and McDonald's have prompted the IOC to prioritize sponsors that align with its mission and values. While Coca-Cola remains an Olympic sponsor, the McDonald's deal ended prematurely in 2017.
The partnership with AB InBev aligns with the IOC's marketing mission, which dictates avoiding commercial associations with products that may conflict with the organization's mission or the spirit of Olympism. AB InBev, known for its efforts to foster responsible consumption, believes there is no conflict between being the sponsor of Corona Cero and Michelob Ultra, another brand in its portfolio, for the 2028 Los Angeles Olympics. The company asserts that it will continue to promote responsible drinking.
The decision to include a non-alcoholic beer brand like Corona Cero in the sponsorship deal reflects shifting consumer preferences. Sales of non-alcoholic drinks have been growing at a faster rate than their alcoholic counterparts in recent years, driven by concerns about health, wellness, and moderation among younger drinkers. According to market research firm IWSR Drinks Market Analysis, sales of non-alcoholic drinks in the top 10 markets have grown by 70% between 2018 and 2023, reaching over $8.5 billion. In contrast, sales of alcoholic drinks in those markets have grown by 14% to $470 billion.
As an Olympic sponsor, AB InBev will have exclusive worldwide rights to use Olympic branding in its advertising and campaign activations, including the iconic five rings symbol. However, sponsors will not be able to display their names or slogans at Olympic stadiums and venues. While there won't be any Corona Cero marketing visuals during the Paris Olympics, AB InBev can creatively incorporate the Olympic branding into its product packaging and promotions.
The IOC's sponsorship program has been a significant source of revenue for the organization, generating almost $2.3 billion in cash, services, and value-in-kind during the previous commercial cycle that culminated in the Tokyo Olympics held in 2021. With 15 sponsors currently on board, the program continues to expand.
The addition of AB InBev to the IOC's sponsorship program marks an exciting milestone for the organization and the beer industry. While debates surrounding the sale and consumption of alcohol at sporting events persist, the IOC and AB InBev are emphasizing responsible drinking practices. As the world eagerly awaits the Paris Olympics, this partnership highlights the evolving landscape of Olympic sponsorships and the growing prominence of non-alcoholic beverage options.
