The Super Bowl Economy

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"There are very few events that lend themselves to parties in front of the TV, and this is one of them," says Brian Lucas, spokesperson for Best Buy (BBY). In recent years, Best Buy has played up Super Bowl season by bundling discounts on HDTVs, digital cable subscriptions, audio equipment, and next-generation DVD players. Others, including Circuit City (CC), guarantee delivery and installation before the big game on sets purchased by Jan. 30.

An HDTV is a Super Bowl party plus, but snacks and beverages are a must. For years, makers of snacks, soda, and beer have marked the Super Bowl on their calendars as one of the strongest sales periods of the year. In the week leading up to the big game last year, 73 popular categories of food and beverage saw a combined $261 million boost in sales over an average week, according to research by ACNielsen. Tortilla chips were the single most popular snack among party-throwers, receiving a boost of 29%, or $13.4 million, over a normal week of sales.

Crunch Time

Frito-Lay, the PepsiCo-owned (PEP) snackmaker that leads the tortilla chip category with its Tostitos brand, is gearing up. "The Super Bowl is the No. 1 snack food consumption day of the year," says Frito-Lay spokesperson Aurora Gonzalez. "Leading up to the Super Bowl, we increase production of potato and tortilla chips by more than 10 million pounds."

Perhaps no business has greater hopes for this year's game than the host city of Glendale, Ariz., nine miles northwest of Phoenix. When Tempe, Ariz., hosted the Super Bowl in 1996, economists at the Arizona State University College of Business estimated the game to have an economic impact of $306 million spread across local industries, from food and beverage to hotels and outdoor recreation. The event generated 6,100 jobs for local staff, and state and local tax revenues were up $27 million.

Seven years later, Arizona went after the Super Bowl again. Shortly after ground was broken for University of Phoenix Stadium in 2003, Glendale put in a bid to host the Super Bowl that included $20 million worth of incentives, such as providing 20,000 top-quality hotel rooms and increased public safety measures. The investment could be well worth it: The Arizona Super Bowl Host Committee is projecting an economic impact between $400 million and $500 million on the local economy.

The crowds have already started to gather in the Phoenix area, and they look intent on spending. During a phone interview, merchant Sodell continually pauses to help out customers. After a woman asks about a certain jersey that he doesn't have on the shelf, Sodell responds: "Give us your name and your size, and we'll hold one for you. They'll sell out in no time." He's hardly the only business hoping for a sellout.

MacMillan is a reporter at BusinessWeek.com in New York. Paula Lehman is an editorial assistant for BusinessWeek in New York.