Originally published September 6, 2023 2:00 pm PDT
Bill Gates has reportedly acquired a significant stake in Anheuser-Busch, Bud Light’s parent company, amidst an ongoing boycott against the beer brand.
Documents indicate that The Bill and Melinda Gates Foundation Trust purchased 1.7 million shares worth approximately $95 million, according to a report from The Epoch Times.
This substantial purchase comes after Bud Light stirred controversy for its promotional collaboration with transgender activist Dylan Mulvaney.
A swift backlash emerged, leading to a marked decrease in sales for the beer company.
This promotional campaign featured Mulvaney’s image on a Bud Light beer can, which received significant attention on platforms like TikTok.
Notably, musician Kid Rock used the cans for target practice.
Former President Donald Trump voiced his opinion on the matter, saying, “It’s time to beat the Radical Left at their own game. Money does talk—Anheuser-Busch now understands that” on his Truth Social platform.
Similarly, Florida Governor Ron DeSantis pushed the state’s pension fund manager to consider legal avenues against Anheuser-Busch.
He accused the company of failing to repair its relationship with a significant portion of its consumer base, which, he suggested, could harm shareholders.
Reacting to the criticism, Anheuser-Busch responded by emphasizing their dedication, stating, “Anheuser-Busch InBev takes our responsibility to our shareholders, employees, distributors, and customers seriously.”
According to data from Evercore ISI and Circana, sales of Bud Light have plunged by 28.1% year-over-year as of mid-August.
Evercore ISI analyst Robert Ottenstein, assessing the trend, mentioned that “Continued weakness begs the question of whether Anheuser-Busch InBev and/or its distributors will have to make significant structural changes to reduce their cost basis if trends don’t improve over the next few months.”
Furthermore, Nielsen IQ sales data via Bump Williams Consulting indicates a 20.1% drop in Bud Light sales volumes at off-premise locations year-to-date as of late August.
In the midst of these challenges, some analysts have a hopeful perspective, Epoch Times emphasizes.
Morgan Stanley’s Sarah Simon opined that despite the US market share loss due to Bud Light boycotts, Anheuser-Busch InBev’s engagement in emerging markets might mitigate the effects.
“While this makes for very negative headlines, ABI’s exposure to emerging markets limits the impact of the US share loss. After one-off costs in 2023, we see profitability growth resuming in 2024, with strong cash flow growth driving leverage to the target 2.0x, allowing for both an increase in the payout ratio as well as the resumption of share buybacks from 2026. Current valuation fails to reflect this upside, in our view,” Simon noted.
Interestingly, despite his self-proclaimed lack of affinity for beer, Gates also made a significant investment in Heineken Holding earlier this year, amounting to about $1 billion.
