German supermarket chain pulls sponsorship from World Cup over gay rights row

By David Shrimpton in Industry News 23rd November 2022

A major German retailer has pulled out of sponsoring Germany in the World Cup, sparking a debate about whether firms associated with the event could harm their reputations.

Rewe, which has 3,300 stores in Germany, has pulled out of its partnership with the German football association over what it called FIFA’s “scandalous attitude” in the row over Qatar’s hardline attitude towards gay people. FIFA is football’s global governing body.

Rewe said in a statement: “Following the current decisions of FIFA and the statements by FIFA president Gianni Infantino, the company feels required to clearly distance itself from FIFA’s stance and to waive its advertising rights from the contract with the DFB [the German football association], especially in the context of the World Cup.”

Rewe also said its collectibles album currently available in stores would now be given away free of charge, with the company bearing the costs.
After the end of the promotion, Rewe will donate all of the proceeds from the album to charity. The exact value and recipients of the donation will be announced at a later date.

Captains of several European teams, including Germany and England, had said they would wear a “OneLove” armband during the tournament in order to promote inclusion.

But the teams backed down after FIFA threatened to sanction any players who did so.

Rewe’s action raises the possibility that other companies might follow suit and commentators have already begun speculating on whether involvement with the World Cup is good or bad for commercial reputations.

Steve Leigh, managing director at consultant Sensu Insight, said: “According to our recent research, 52% of consumers feel it’s wrong for brands to support the World Cup in Qatar, suggesting that companies associating themselves with the event or using it to promote their products or services are taking a significant risk with their reputations.

“With so much unpredictability around the event and how it will unfold over the coming weeks, businesses need to remain vigilant and continue to handle communications with caution. There are still so many unknowns around how protests in Qatar may develop and the treatment of fans and public opinion can quickly turn.”