WEBVTT - Citi's Filippo Falorni Talks World Cup Consumption

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Shoul We've begetting down some serious coverage and we make

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<v Speaker 2>jokes about it, but it's not funny. It's a huge,

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<v Speaker 2>huge research study for Global Wall Street. Paul, why don't

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<v Speaker 2>you bring in Filipo here, because you're more a tune

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<v Speaker 2>to the World Cup.

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<v Speaker 1>Than absolutely Flip of Florni joints a series a director

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<v Speaker 1>in the Equity Research Department of City covering a lot

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<v Speaker 1>of the consumer products companies. Flip I know you guys

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<v Speaker 1>did a big survey of consumers around the world and

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<v Speaker 1>how they plan to consume the World Cup, what kind

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<v Speaker 1>of stuff they're going to do around the World Cup.

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<v Speaker 1>Talk to us about some of your findings.

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<v Speaker 3>Yeah, good morning, guys, thanks for having me on. Look,

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<v Speaker 3>we did a big study here. We looked at seven

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<v Speaker 3>countries globally, the three host countries US, Mexico, and Canada,

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<v Speaker 3>and then countries in Europe and Latin America where soccer

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<v Speaker 3>fans that are very hashna about the games and look generally,

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<v Speaker 3>one of the main takeaway is that the engagement globally

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<v Speaker 3>is very elevated. Ninety seven percent of respondents they plan

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<v Speaker 3>to engage somehow with the games, whether it's watching it

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<v Speaker 3>live on TV, whether it's following on social media, or

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<v Speaker 3>going live to the game. About twenty percent of respondents

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<v Speaker 3>said they plan to go live. And the average ticket

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<v Speaker 3>prices you've heard a lot about those ticket prices being

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<v Speaker 3>very elevated. People already spent about five hundred and ninety

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<v Speaker 3>dollars on average to buy tickets for once in single games,

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<v Speaker 3>so it's elevated, but the engagement level are very high.

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<v Speaker 3>And then we ask specifically because I cover more the

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<v Speaker 3>consumer staples groups, specifically about food and beverage consumption, and

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<v Speaker 3>generally we are seen, on average, people plan to spend

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<v Speaker 3>about one hundred and fifteen dollars extra per week during

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<v Speaker 3>the games on food and beverage items, so clearly there's

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<v Speaker 3>going to be an increasing consumption behavior. We've also seen

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<v Speaker 3>in terms of responses that people plan to be a

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<v Speaker 3>little bit more relax with their diets or with their

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<v Speaker 3>typical eating and drinking habits, so that could be also

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<v Speaker 3>a bit of a boost for general food and beverage companies.

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<v Speaker 1>You know, we see here in the US Filippo Super

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<v Speaker 1>Bowl time and it's all about chicken wings and beer

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<v Speaker 1>and all that kind of stuff. And I know the

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<v Speaker 1>consumer products companies that you cover, they go big time

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<v Speaker 1>on advertising. What do folks tell me that they're going

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<v Speaker 1>to do around game time these days in terms of

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<v Speaker 1>their behavior?

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<v Speaker 3>Yeah, absolutely so we ask both in terms of food

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<v Speaker 3>and beverage consumption. In terms of food consumption, the clear

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<v Speaker 3>favorites were pizza and potato chips. About forty nine percent

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<v Speaker 3>of respondents said they plan to eat pizza in the game.

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<v Speaker 3>That forty six percent salty snacks, So not a big

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<v Speaker 3>surprise there, right, Those are kind of like clear favorites.

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<v Speaker 3>And in terms of beverages, within alcoholic beverages was the

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<v Speaker 3>clear winner sixty four percent of response that they replied

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<v Speaker 3>to drink beer and then in non achay soft drinks

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<v Speaker 3>traditional soft drinks, so that is about fifty So not

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<v Speaker 3>big surprises. Companies are definitely pushing significant in their marketing

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<v Speaker 3>campaign and you have if I had some global sponsors, right,

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<v Speaker 3>So those those are the ones that.

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<v Speaker 2>Sure, I'm sure you're going to quiet a beverage with

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<v Speaker 2>Jane Frazier. She wants England go after it with Harry

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<v Speaker 2>Kanan all, but you need to explain to me. Alessandro

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<v Speaker 2>Bastoni gets a red card against Bosnia Harrisgovina and for

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<v Speaker 2>the third time around, Italy doesn't make the World Cup.

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<v Speaker 2>Filipo discuss.

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<v Speaker 3>No, it's I was devastating. I'm Italian born and raised

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<v Speaker 3>in Italy. It's been it's been really challenging to see

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<v Speaker 3>to see our team missa for the third straight time.

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<v Speaker 3>We need a big generational shift. I think, hopefully for

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<v Speaker 3>the next one will be in a better shape.

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<v Speaker 2>But Ero got his first gray hair of this. I mean, flip,

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<v Speaker 2>help me out here with the importance to Italy, just

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<v Speaker 2>as one example that they did not make the World Cup,

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<v Speaker 2>which frankly sounds on America. How can you have it

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<v Speaker 2>without Italy? I know fully, but what is going on

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<v Speaker 2>with the offspring the ute of Italy?

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<v Speaker 3>Yeah, no, it's you're right. I mean, like, look, I

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<v Speaker 3>was I was very young when we won the World

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<v Speaker 3>Cup in two thousand and six, and I remember that

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<v Speaker 3>was a phenomenal day. But we I think what the

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<v Speaker 3>problem has been is that the new generation, they haven't

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<v Speaker 3>given a lot of opportunities to really step up to

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<v Speaker 3>be games. And then when you have big games like

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<v Speaker 3>The BOSSI wanted just sudden that game, you feel too

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<v Speaker 3>much pressure that was I think that's what happened.

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<v Speaker 2>Who do you pick? Who you do you feel has

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<v Speaker 2>the upper hand here?

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<v Speaker 3>I think France has the better team in terms of

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<v Speaker 3>players and style. I also like Spain.

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<v Speaker 2>Scotland, you know, I think Scotland can go all the

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<v Speaker 2>way at City. We'll have to see Filipo. Thank you

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<v Speaker 2>so much. I'm sure you'll never come back. Our first

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<v Speaker 2>World Cup study here Filipo for Learning with world class

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<v Speaker 2>consumer analysis here wrapped around uh the World Cup, and

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<v Speaker 2>we do note that it's without Italy.