The deal
Last week (May 8) global beverage giant Diageo, one of the world’s largest alcoholic drinks conglomerates, agreed a wide-ranging commercial partnership with global soccer governing body FIFA to sponsor the 2026 FIFA World Cup – which will take place in the US, Mexico, and Canada – across the North, Central, and South America regions.
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The spirits-centric tie-up will center around Diageo’s whisky brands Buchanan’s and Johnnie Walker, its tequila brands Don Julio and Casamigos, and vodka label Smirnoff.
Across the 2026 tournament, which will kick off on June 11 and run through July 19 of that year, the brands will activate in co-branded promotional activities across the Americas.
Why it matters
The 2026 World Cup marks a return to prominence for FIFA’s alcohol sponsorships, headlined by its global deal with AB InBev brand Budweiser, after the 2022 World Cup in Qatar dampened the category.
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By GlobalDataAlcohol is mostly prohibited in Qatar bar a few select locations, and though Budweiser changed tack to promote its zero alcohol brand across the tournament, the effect was severe enough that the company sought a reduction in its sponsorship commitment for the 2026 World Cup from FIFA after the governing body announced an alcohol ban at stadiums during the tournament, reneging on an earlier promise.
Despite the animosity, AB InBev renewed for the 2026 World Cup, and now Diageo has followed suit with a sponsorship of its own, such is the opportunity in the American beverage market, especially for a World Cup that has, for the first time, been expanded to 48 teams, granting sponsors and unprecedented level of global visibility.
Speaking on the Diageo deal, GlobalData Sport associate analyst Tom Subak-Sharpe commented: “With alcohol returning to the FIFA World Cup after a ban on its sale in all stadiums during the previous tournament in Qatar, this year is set to be significantly important for Diageo and AB InBev, which continues to serve as the official beer sponsor of the event. As the competition returns to a major alcohol market, it creates substantial opportunities for beverage giants to market their brands to billions of people worldwide.
“Brands aligned with the biggest sporting event in the world benefit in various ways, which include the unparalleled visibility of its image to billions of fans around the world. No other sporting event reaches the size of the audience of the FIFA World Cup or its vast global reach. Furthermore, given the affiliation of alcoholic consumption and global soccer fans, the partnership offers an unparalleled opportunity to reach its primary audience, making it one of the most sought-after across the sports marketing landscape.
“Another significant benefit of the FIFA World Cup partnership relates to the multiple host countries involved; ensuring brand products and advertising will be seen directly in big national cities across Canada, Mexico, and the United States [which boast a collective population of around 450 million].”
The 2026 World Cup could be pivotal to Diageo’s fortunes in the Americas after a difficult few years in the region, particularly in Latin America.
In 2023, a significant drop in sales in Latin America and the Caribbean sent shares tumbling and prompted a profit warning at Diageo, owing to what it called “macroeconomic pressures”.
Diageo has faced similar struggles in the North American market, where sales declined across the 2023-24 fiscal year by as much as 2% on a reported basis to $7.91bn, with volumes down 4%.
In a statement accompanying Diageo’s full-year results, chief executive Debra Crew linked the declines “to a cautious consumer environment and the impact of lapping inventory replenishment in the prior year”.
This may yet be further exacerbated by the ongoing uncertainty around US president Donald Trump's global tariffs policy, which saw Diageo scrap its medium-term guidance in February, bad timing for the firm after regional sales in every Diageo market (besides Asia Pacific) fell in the second half of 2024, with North American reported and organic volumes down as much as 3%, while net sales were flat.
Subak-Sharpe continued: “The 2026 World Cup presents a significant opportunity for the brand to raise awareness of its selected products across North America and ultimately boost sales results throughout 2026.
“The brand's performance following the 2026 FIFA World Cup will be a crucial factor in determining whether it will seek to renew its partnership with FIFA and partner with the 2030 FIFA World Cup, which will take place across three continents: Africa, Europe, and South America. This would represent an intriguing investment opportunity for Diageo, as it would allow them to directly reach even more national markets, which are significant markets for the spirits industry.”
From a FIFA perspective, this deal allows the body to maximize sponsorship revenue from alcoholic beverage brands without jeopardizing its beer category exclusivity with AB InBev, which is crucial given Budweiser’s support of the upcoming FIFA Club World Cup.
As one of the world’s most prominent beverage conglomerates, FIFA will also be hoping that a strong performance off the back of the World Cup could inspire Diageo to re-invest with even more global coverage for the event’s 2030 edition, especially with the tournament set to once again venture to the Middle East in 2034 with Saudi Arabia, where alcohol consumption is once again likely to be a hotly contested topic.
The details
GlobalData Sport estimates the value of Diageo’s World Cup 2026 sponsorship as worth $18 million, which puts it firmly in the lower end of currently agreed deal estimates for the tournament, likely due to the deal’s reach solely extending across the Americas, rather than a global partnership as many others have sealed.
Furthermore, the fact that the deal extends only to spirits brands – when perhaps Diageo’s most prominent global brand, Guinness, sits outside the category – may have played a role in limiting the fee that Diageo was willing to pledge in sponsorship.
A total of 104 games will be staged across the tournament, with as many as 15 teams from across the Americas able to qualify for the expanded format, a prospect which could allow Diageo to maximize the value of its sponsorship, with the three host nations of USA, Mexico, and Canada having already confirmed their berths, as have reigning World Cup champions Argentina.
Diageo is currently a supporter of soccer in the US, in particular, with its Aviation American Gin, Captain Morgan's, Guinness, and Casamigos brands all boasting sponsorships with current Major League Soccer and National Women’s Soccer League sides.
