That’s according to global supply chain consultancy Crimson & Co.
Brazil has been criticised for its construction and planning procedures – with three stadiums still not officially completed last week – suspected corruption and rioting, claimed Crimson & Co principal Rob Baker.
The month-long global football tournament would be watched by billions across the planet and provided the ultimate billboard for brands to showcase their products worldwide, said Baker.
Margins and reputations
But he warned food and drink firms without contingency plans in place that their margins and reputations could be affected by Brazil’s shortcomings.
“Whether it is merchandise [or] food or beverage, firms providing products and services must look at the lessons which can be learnt from the host nation,” he added. “Suppliers must conduct a thorough overview of their supply chain or products and services destined for the tournament.
“In doing so, suppliers will be able to ensure they meet contractual obligations by having the right product, at the right place, at the right time, with the result from this level of preparedness being the right margins for your business.”
Businesses most at risk were those without a pre-existing presence in the country, Baker claimed.
“Even with something as significant as the World Cup, it would be naïve to assume the route to market for overseas suppliers is straightforward. It’s imperative for firms to analyse each individual element of their supply chain, as the potential for disruption from so many external factors is huge.
“Examples of this could be anything from the extremes of corruption and rioting, to the loss of productivity from workers as the tournament progresses and more people take time out to watch the games.”
Anti-World Cup protestors have campaigned against the tournament since it kicked off on Thursday (June 12). Many anti-equality protestors are angered at the $11bn spent to build stadiums in 12 host cities, believing it could have been put to better use.
Food and drink businesses sponsoring the event include poultry processor Moy Park, Coca-Cola Enterprises, Budweiser, Johnson & Johnson and McDonald’s.
To view food and drink brands – including Budweiser, Mars, Pringles and Carlsberg – that have rebranded their packaging for the World Cup, view our photogallery.
Meanwhile, MMR Research Worldwide warned businesses to think before they shoot and not jump on the bandwagon of rebranding their products for the World Cup as it might turn off people with fatigue of the tournament.