Bill Gates Shows Confidence in Anheuser-Busch Despite its Struggles
(CNN) – It has been a challenging year for Bud Light’s parent company, Anheuser-Busch, but there is one notable investor who remains confident in its potential – Bill Gates.
According to a recent regulatory report, the Bill & Melinda Gates Trust Foundation purchased 1.7 million shares of Anheuser-Busch, valued at approximately $95 million. This move suggests Gates’ belief in the brewing company, which has been grappling with a significant decline in sales of one of its flagship beers.
Gates made the investment when Anheuser-Busch reported earnings that encompassed the aftermath of Bud Light’s partnership with transgender influencer Dylan Mulvaney. The decision to personalize a can for her led to a wave of transphobic backlash and alienated some of the company’s key customers. Furthermore, the subsequent response from the company outraged members of the LGBTQ community.
However, Gates’ investment has not yielded positive results so far, as Anheuser-Busch shares have fallen almost 2% since his purchase. Year-to-date, shares are down 7%.
Last month, the company reported a 10% decline in US revenue for the second quarter, largely attributed to weak Bud Light sales. Sales to US retailers fell 14%, underperforming the broader beer industry, primarily due to reduced volumes of Bud Light sold. During the same period, North American revenue decreased by $395 million, while revenue in Canada increased, indicating that the decline was isolated to the United States.
Furthermore, recent data from NIQ revealed that Modelo, another beer brand, surpassed Bud Light in sales at grocery stores and breweries. This marks the first time Modelo has outperformed Bud Light this year, although the difference is marginal. As of August 12, Modelo holds an 8.34% share of dollars spent on beer, while Bud Light holds 8.28%.
In July, Anheuser-Busch also announced layoffs affecting fewer than 2% (around 380 positions) of its US workforce. This downsizing occurred within the company’s corporate ranks.
Despite Gates admitting that he is “not a big beer drinker,” he has also invested in other beer brands. Earlier this year, the Gates Foundation purchased nearly $1 billion worth of shares in Heineken Holding, the parent company of the Dutch beer.
While Anheuser-Busch faces several challenges, Gates’ investment demonstrates his confidence in its potential for recovery and success. Only time will tell if his trust in the brewing company pays off.