Anheuser-Busch Makes Deal with UFC - InvestingChannel

Anheuser-Busch Makes Deal with UFC

Anheuser-Busch InBev’s (NYSE:BUD) Bud Light will again become the official beer sponsor for the Ultimate Fighting Championship with a six-year marketing partnership, the companies announced Tuesday.

The sponsorship deal is “well into the nine figures,” and the largest in the mixed martial arts promotion’s history, sources said.

As part of the agreement, Bud Light will receive exclusive and prominent branding at UFC fights and events, as well as in-arena promotion. In addition, the brewer will collaborate on original content for UFC’s digital and social channels.

The deal goes into effect Jan. 1.

The agreement comes on the heels of a conservative boycott against Anheuser-Busch’s Bud Light that began this spring when the brand partnered with transgender influencer Dylan Mulvaney. The backlash put a dent in sales for the beer in the weeks that followed. At the height of the backlash, Modelo Especial dethroned Bud Light as the best-selling beer in the U.S.

With the deal, Anheuser-Busch reestablishes ties with an organization perceived to have a more conservative political bent than many other U.S. sports leagues. UFC CEO Dana White donated at least $1 million to a political action committee that supported Donald Trump’s 2020 presidential campaign, and the ex-president appeared at a UFC event in Las Vegas earlier this year.

Bud Light will now replace Modelo, which is distributed by Constellation Brands (NYSE:STZ)

BUD shares gained 27 cents to $53.69.

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