Here comes Superbowl 59
Game Day is just around the corner. On February 9, at the Caesars Superdome in New Orleans Super, the Philadelphia Eagles will face last year's winners, the Kansas City Chiefs. America is gearing up for the biggest game ever.
Grocery stores are stocking up on chicken wings, nachos and soda. Consumers are shopping early and spending more while companies are breaking records on ad spend. And for many viewers, the Chief's tight end's romance with Taylor Swift will add a dose of human interest to the festivities.
This year the heavy demand for ads had some 30-minute spots selling for more than $8 million versus $7 million last year. It is probably the only TV event in America where the 120.7 million estimated viewers pay almost as much attention to the commercials as they do to the game.
This year prepare for an avalanche of celebrities, cute animals, and snack brands during the breaks in the action. Meta, PepsiCo, Frito-Lay, Taco Bell, Uber Eats, and Anheuser-Busch will all be back. Meg Ryan, Billy Crystal, Willem Dafoe, Catherine O'Hara, Chris Pratt, and Chris Hemsworth among others will be hawking everything from beer to Smart Glasses.
One area where prices have fallen this year is ticket prices. The cheapest nosebleed ticket has dropped below $4,000 on the secondary market--less than half the price from last year's record-breaking event. Why the drop? It could be the location.
Last year the Superbowl was held in Las Vegas between the Chiefs and the San Francisco 49ers. Some believe that New Orleans does not have the same appeal as Vegas, the quintessential party city. The Caesars Superdome also holds more people, 74,000 seats versus the 65,000 seats of the Las Vegas Allegiant Stadium. In addition, New Orleans’ reputation is still suffering from the terrorist attack last month where 14 people were mowed down by a pickup truck.
It could also be that football fans are getting bored with the same champions year after year since this is the Chief's third straight Superbowl bid. However, couch potatoes have no problem with the match-up. Sixty-five percent of consumers plan to watch the game, up from last year.
Numerator, a data and tech company in market research, found in a recent survey that sitting at home was the most popular game option, while hosting or attending a party was the favored venue for 47% of those surveyed.
From a generational point of view, Boomers are much more likely to watch the game, while Gen Z and Millennials look forward to eating, drinking, and making merry. The younger set are also far more interested in the commercials and halftime shows than the game, according to the survey.
They also claim that 46% of viewers planned to favor the Philadelphia Eagles. I count myself in that camp simply because I come from Philadelphia. Taylor Swift's attendance at the game is also an attraction since 36% of those asked say they have a Taylor Swift fan in their household. Many viewers, however, have less interest this year in the halftime show and more interest in watching the game and commercials.
Super Bowl Sunday is the second-largest food consumption day in the U.S. after Thanksgiving. This year the nation will spend a record $17.3 billion on food and drink. Chicken wings still hold the number one spot in favored food.
Americans will consume 1.47 billion chicken wings, 11.2 million pounds of potato chips, and 8.2 million pounds of tortilla chips. In addition, 12.5 million pizzas will be ordered, not counting those made at home. The Wells Fargo Agri-Food Institute pegged the cost of a Super Bowl party menu for 10 people at $139 this year, about the same price as last year, if you pick and choose what you are serving.
Stay away from beef and eggs and go easy on the cheese. Those items have seen hefty price increases. Frozen shrimp, celery, and broccoli have seen price declines, so they are all good substitutes, but chicken wings cost about 7% more than last year.
Given the last few weeks of rapid change in the nation, something apolitical could do us all some good. A weekend away from the news and social media where just about every story begins with a "T" may be just what the doctor ordered.
Enjoy the weekend.
Bill Schmick is a founding partner of Onota Partners, Inc., in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of Onota Partners, Inc. (OPI). None of his commentary is or should be considered investment advice. Direct your inquiries to Bill at 1-413-347-2401 or e-mail him at billiams1948@gmail.com. Investments in securities are not insured, protected or guaranteed and may result in loss of income and/or principal.