Bud Light and UFC Form a Multiyear Partnership
Bud Light strikes a multiyear deal with UFC, reclaiming its beer sponsorship from Modelo, the previous top beer brand in the US
Article Brief:
In a press release, it was revealed that Anheuser-Busch and the mixed martial arts organization UFC have formed a new marketing partnership that spans multiple years. Starting from January 1, 2024, the brewer will have the distinction of being the sole Official Beer Partner of UFC.
Globally, AB InBev, the parent company of UFC, will become the official beer partner for the organization. This partnership will involve integration into various UFC assets such as live events, broadcast features, in-arena promotion, and original content through UFC's digital and social channels.
Bud Light, a brand under AB InBev, will have prominent branding displayed inside the UFC's iconic Octagon structure. Additionally, Bud Light will have its brand and campaigns integrated into all pay-per-view events held by UFC in the United States. This move by Bud Light comes amidst the ongoing repercussions stemming from a controversial collaboration with trans influencer Dylan Mulvaney.
Article Insight:
AB InBev is making a strategic move by partnering with UFC as it aims to recover from the negative impact of its collaboration with trans TikTok personality Dylan Mulvaney in April. This collaboration caused Bud Light to lose its position as the best-selling beer in America after holding that title for over two decades. This summer, Modelo Especial, owned by Constellation Brands in the U.S., claimed the top spot.
Bud Light is now replacing Modelo as the UFC's beer sponsor, as part of a new six-year partnership. Molson Coors, a competitor of AB InBev, is also benefiting from Bud Light's struggles and plans to increase its marketing spending by $100 million in the second half of 2023. Bud Light and AB InBev are making efforts to move past the controversy through a series of new campaigns. Marcel Marcondes, the global CMO for AB InBev, expressed excitement about the partnership with UFC and the opportunity to connect with consumers and amplify the sport worldwide. "We will be creating new and exciting brand experiences for UFC fans," said Marcondes in a statement.
As part of the partnership, AB InBev and Bud Light will have a strong presence within the UFC. This will allow the brewer brand to reach the organization's 700 million fans across 170 countries, as well as the estimated 900 million households that receive UFC broadcasts. During UFC PPVs, Bud Light will be prominently displayed in the Octagon, with its "Easy to Enjoy" and "Easy to Celebrate" campaigns being highlighted. Furthermore, there will be collaboration between UFC and Bud Light on original content for the organization's digital and social channels, which have a global reach of over 243 million users. Additionally, Budweiser and select local AB InBev brands will activate the sponsorship through various events and marketing initiatives in international markets.
According to sources from Ad Age, the partnership between UFC and Anheuser-Busch is expected to surpass UFC's previous record-breaking sponsorship deal of $175 million with Crypto.com. Anheuser-Busch recently reconnected with the NFL's Washington Commanders after the team underwent ownership changes following a string of controversies.
This year, UFC's parent company Endeavor merged the organization with the WWE, forming a new $21 billion company called TKO. With its presence in the advertising and streaming industries, TKO has the potential to become a significant player.
