UEFA 2024 to Boost Not Only Beer Sales in the UK

This summer, the UEFA Euro 2024 championship is expected to generate increased sales for UK pubs and beer companies. However, the performance of the England football team may limit these gains. Is there an alternative approach?

Getting Passed the Stages

Football is a big business for UK pubs, restaurants, and other venues that host matches. British consumers are also expected to spend money on beer and snacks at home. Estimates suggest pub spending could reach £340 million during the group stages. If England progresses to the finals, spending could increase to as much as £800 million. Attendance at public venues to watch matches is expected to double compared to the 2022 FIFA World Cup, which saw reduced turnout due to covid. Including shop sales of beer and snacks, the estimated 35.4 million UK viewers are expected to spend around £2.75 billion collectively.

However, England's performance has been inconsistent so far despite securing a leading position in its group. They managed to progress from the group stage with few goals scored. Their matches against Denmark and Slovenia ended in draws (though those teams also drew with each other), so further progress is uncertain. Pub attendance will likely be lower without a team to support it moving forward.

Taking Advantage?

Even without England progressing beyond the group stage, pubs may experience some relief from increased spending. UK consumers have been cutting back, resulting in fewer pub visits, as well as avoiding higher prices caused by increased energy costs impacting restaurant and pub profits in recent months. Sales on the first match day saw draught beer sales increase 122% during matches.

 Large pub chains like Wetherspoons and Revolution Bars have promoted showing football matches. Most are expected to host viewings. However, it remains unclear if this will be enough to overcome general pessimism in the hospitality sector and raise share prices. Almost two-thirds of business operators said they were not optimistic about prospects this year. Football-related sales may temporarily help listed hospitality companies, but sustained changes to consumer confidence and energy costs will likely be needed to alter the sector's trajectory beyond summer.

A Different Approach

Trainline is anticipated to see a boost at home and away as it allows booking Deutsche Bahn tickets, the official national partner. UEFA 2024 ticket holders can access discounted DB tickets for single journeys between host cities in Germany and Interrail passes for international arrivals; Trainline is a major Interrail pass seller. The company currently offers European rail deals and discounts for Euro 2024 fans, such as group, weekend and rail pass discounts.

Research found that over two-thirds (68%) of fans travelled by train to the 2022 UEFA Women's Euro matches. Two in five (43%) would attend more sporting events if they could save on travel, so this partnership could lead to increased bookings.

Trainline Triple-Bottom or H&S

Trainline slid in early June but recovered during the month's latter half after finding firm support at 300 GBX and soaring 11%. If prices move past 345 GBX, Trainline may revisit the local top near 400 GBC or even break higher. However, if the share price falls back below the key point, it could push the stock to around 260 GBX should 285 GBX be breached, completing a potential head-and-shoulders instead and reversing to an uptrend.

Source: SpreadEx / Trainline

Key Takeaways

The UK's UEFA Euro 2024 football championship is expected to generate increased spending in pubs and on beer. However, England has been inconsistent, so pub attendance may be lower without their support. Even if England does not progress, pubs could see some relief from higher spending though, but while this may help listed hospitality companies temporarily, sustained changes are still needed for long-term recovery. Still, Trainline anticipates growth through its partnership with Deutsche Bahn, UEFA's national partner, as it allows discounted train tickets between host cities in Germany and Interrail passes.