While shops and pubs may be banking on a bumper summer of football to drive up sales, fresh insight from analysts Circana hints that cost of living pressures mean this year’s tournament may actually be unlikely to lead to a big increase in spending in stores.
Small rises in the amount of beer and snacks bought when Euro 2024 aired did not lead to a major rise in the money shoppers spent, according to Circana’s analysis, as prices fell due to brands running more promotions to capture a bigger share of the market.
It adds that a similar trend is expected this year, as people continue to deal with higher living costs and look for way to enjoy games at home without spending much more on food and drink.
The amount of beer and lager purchased in shops grew 0.9% year-on-year during the summer of 2024 when England reached the Euro finals, with spending up by just 1.1% compared to 2023. Crisps and snacks volumes increased by 1.4% - but heavy promotions meant actual spending increased by only 0.5%.
This was still behind the longer-term trends for both categories, with football fever encouraging extra consumption but not enough to offset promotional discounts and deliver a clear value sales boost.
Alex Lawrence, senior strategic insight director for UK CPG at Circana, said: “The excitement around England and Scotland games should boost beer and snack retail sales, but the tournament is landing just as the cost of living situation worsens and more shoppers are looking to manage their grocery spend.
“Even the most ardent fans will look to trade down to cheaper products, buy on promotion and hold back on the beers just a little.
“The danger for brands is that they may sell more product but give away too much value through discounts to deliver year-on-year value sales growth.”
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