Budweiser Brewing APAC faced challenges in its second-quarter sales in China amid weak demand in the catering sector, according to analysts. However, the ongoing FIFA World Cup, which runs from June 12 to July 20, may provide a boost to the company’s performance in the third quarter.

Goldman Sachs analysts, citing details from Anheuser-Busch InBev’s Asian investor relations team, noted that soft traffic in on-trade channels such as bars and restaurants remained the primary obstacle for Budweiser in mainland China. Despite this, nightlife sales held relatively steady during the period. AB InBev, the Belgian parent company of Budweiser Brewing APAC, is expected to release its second-quarter earnings on July 30.

Another Goldman Sachs report forecast a 2.4 percent decline in organic volume for AB InBev across the Asia-Pacific region for the quarter, highlighting broader softness in the market. Jacky Tsang, an analyst at Morningstar, described demand in on-trade channels as sluggish, citing subdued consumer sentiment as a contributing factor.

The summer period, coinciding with the World Cup, represents a peak season for beer consumption in China, the world’s second-largest consumer goods market. Tsang noted that Budweiser had intensified its marketing efforts related to the World Cup, leveraging AB InBev’s role as the official beer sponsor of the event. These initiatives are expected to generate positive sales momentum during July.

In a move that underscores AB InBev’s commitment to the sport, FIFA and the brewer announced an extension of their global partnership agreement on the eve of the tournament, extending their collaboration through to 2030.

Goldman Sachs analysts led by Leaf Liu emphasized that Budweiser planned to continue investing in in-home consumption occasions, where super-premium products have outperformed overall volume trends. The company has also introduced a range of core and premium products such as Harbin 1900, Bud Magnum, and Corona, particularly focusing on in-home and online-to-offline sales channels, to enhance its product portfolio and improve the mix.

As AB InBev navigates a challenging environment in China, the World Cup period may offer a crucial lift, but structural headwinds in on-trade consumption remain a key factor influencing performance.