Dairy Industry's Limited Role in World Cup Sponsorship Compared to Beverages
The FIFA World Cup has proven to be a lucrative event in terms of branding and marketing revenue, with the organization estimating $13 billion in revenue for the four years leading up to the tournament. Marketing and global sponsorships have contributed $3 billion and $1.8 billion, respectively. The tournament's global reach is unparalleled, with 175 million average viewers per match and over a billion for the final in 2022.
Historically, beverage brands like Coca-Cola have maintained a strong presence as World Cup sponsors. In contrast, dairy brands have been less involved, with Danone being a notable sponsor as far back as 1998. More recently, the Chinese dairy company Mengniu appeared as an official sponsor for the 2018 and 2022 tournaments.
Professor Simon Chadwick, an expert in global sports marketing, notes that World Cup sponsorship primarily serves as a visibility and awareness tool, with FIFA controlling how brands use its assets. Food and beverage deals often secure exclusive rights within venues, preventing rival brands from selling their products inside stadiums. However, dairy brands have not aggressively pursued these opportunities.
Economic factors play a role in this disparity. Mengniu, while a significant player in China, lacks the financial clout of beverage giants like Coca-Cola and PepsiCo. The largest dairy company, Lactalis, generates significantly less revenue compared to these beverage companies.
Despite these challenges, dairy brands have begun aligning with sports in strategic ways. In the UK, Müller has partnered with footballer Declan Rice, and in the US, brands like Chobani and fairlife are supporting grassroots sports. Nevertheless, dairy's presence in sports marketing remains low-key compared to other food and beverage categories.
With the growing emphasis on protein and wellness trends, there is potential for dairy products to gain more prominence. Dairy brands could leverage digital advertising during the World Cup to reach a vast audience, as shown by the 621% spike in social media engagement during the 2022 tournament.
Ultimately, to compete on the world stage, dairy brands need to consider long-term partnerships and creative marketing strategies that resonate with sports fans, while also addressing the question of whether consumers associate dairy with elite sports.
