World: Nonalcoholic beer Corona Cero gearing up for a big step in its Olympic sponsorship deal

Corona Cero, Anheuser-Busch InBev's nonalcoholic beer brand, is gearing up for a big step with its Olympic sponsorship deal. The goal is to help the brand become the best-selling non-alcoholic beer worldwide. To do so, the beer brand will have to overtake rivals such as Heineken 0.0, which already has a strong presence in many markets, MarketScreener reported on July 25.

The Olympic sponsorship provides Corona Cero with a platform to drive its expansion and become a major player in the alcohol-free beer market. According to Marcel Marcondes, AB InBev's Chief Marketing Officer, the Olympics will allow for a more aggressive rollout than usual. As part of the agreement, AB InBev will sell Corona Cero in Olympic-themed packaging and run TV and online advertising campaigns tailored to local audiences in most of the 40 countries where Corona Cero is available.

Marcondes emphasized that AB InBev is playing a leadership game with Corona Cero, aiming to make it the number one non-alcoholic beer in the world. The brand will be sold in Olympic-themed packaging and will be promoted through advertising campaigns on TV and online. In addition, a daily summary of key moments from the Games will be broadcast as part of Olympic programming in about 15 countries.

Corona Cero faces stiff competition from Heineken 0.0, which has already established itself as a leading player in many markets. According to Barclays analysis, Heineken 0.0 topped the list of non-alcoholic beers in both the European Union and the United States by 2023.

Demand for alcohol-free beer is growing rapidly, driven by consumer preferences for healthier lifestyles and drinking less. According to George Croft, senior strategy and finance consultant at First Key Consulting, alcohol-free beers offer higher margins than traditional beers because of lower production costs and the absence of alcohol-related taxes.

The market for alcohol-free beer is highly competitive, with major brewers such as AB InBev and Heineken vying for market share. Other players include Lucky Saint, which sponsors the sports tracking app Strava, and Athletic Brewing Company, the official non-alcoholic brand of the IRONMAN Global Series.

According to Ed Kevis, global equity portfolio manager at Aviva Investors, AB InBev has an advantage with its app that sells products to corporate customers. This platform allows Corona Cero customers to win free tickets to the Games and provides a key differentiator globally.

AB InBev's ambitious goal is to make Corona Cero the number one non-alcoholic beer in the world. With its powerful brand and extensive distribution infrastructure, AB InBev is well positioned to challenge the dominance of Heineken 0.0.

The value of AB In Bev's Olympic partnership has not been disclosed, but is estimated at around eight figures. The sponsorship includes Paris 2024, as well as the 2026 Winter Olympics in Milan and the 2028 Olympics in Los Angeles.

Marcondes emphasized that Corona Cero benefits from the strength of the broader Corona brand, which is the fastest-growing and most valuable beer brand worldwide. In Canada, for example, Corona Cero was the top premium nonalcoholic beer by volume and sales within about two years of its launch.

Key points

- Corona Cero aims to become one of the best-selling non-alcoholic beers with the Olympic sponsorship deal

- The brand faces stiff competition from Heineken 0.0, which has already established itself as a leading player in many markets

- Demand for non-alcoholic beers is growing rapidly due to consumer preferences for healthier lifestyles and drinking less

26 July, 2024