Gates Foundation Invests $95 Million in Anheuser-Busch Stock Amid Bud Light Financial Challenges

After months of criticism and plummeting stock prices, Bill Gates’ foundation trust purchased 1.7 million shares of Anheuser-Busch InBev. According to an SEC filing, the Bill and Melinda Gates Foundation Trust purchased the shares, valued at approximately $95 million, last quarter.

What is the source of the dispute around Bud Light?

Anheuser-Busch suffered a setback earlier this year when Bud Light sales fell as a result of an Instagram ad campaign starring Dylan Mulvaney. Many conservatives were outraged when the transgender actress and activist announced her partnership with the beer firm on April 1.

Some people, notably Kid Rock, called for a beer boycott, and sales plummeted in the month that followed. Bud Light, previously the country’s best-selling beer, witnessed a 23% drop in sales in May compared to the same month the previous year. According to Bump Williams, which tracks alcohol sales, sales fell 28% in June compared to the same month last year.

According to consumer behavior data analytics firm Circana, Modelo Especial has surpassed Bud Light to grab the top spot.

Following the outrage over the Mulvaney collaboration, Anheuser-Busch attempted to improve its image by publishing patriotic advertisements and a statement from CEO Brendan Whitworth, who stated, “We never intended to be part of a debate that divides people.” We make a living by bringing people together over a beer.”

While Bud Light remains popular, Anheuser-Busch has felt the effects of the instability and announced in July that it was laying off nearly 2% of its workforce – or 380 of its roughly 19,000 employees.

According to the company’s second-quarter results report, the overall beer business dropped in the period. Anheuser-Busch claimed it surveyed 170,000 customers through a third-party research organization and discovered that 80% of them are positive or neutral with the Bud Light brand.

Nonetheless, the company’s second-quarter revenue fell 10.5%, sales to wholesalers fell 15%, and sales to retailers fell 14%, according to the study. This underperformance is mostly due to the fall of Bud Light.

What is the stock price history of Anhesuer Busch?

gates-foundation-invests-95-million-in-anheuser-busch-stock-amid-bud-light-financial-challenges — After months of criticism and plummeting stock prices, Bill Gates’ foundation trust purchased 1.7 million shares of Anheuser-Busch InBev.

Anheuser-Busch InBev SA (BUD) was valued at $66.53 on March 31, the day before Mulvaney placed the ad, a year high. As the issue developed, the stock price fell to a new low of $53.40 per share on May 31. The price has yet to recover and is currently $56.20 per share on September 7. Year to date, the stock is down $3.42, or 5.74%.

What is Bill Gates’ net worth?

The Gates Foundation trust, which acquired the shares in June after the company disclosed lower earnings, gave the company an exceptionally high-profile investor.

According to Forbes, Bill Gates is worth an estimated $111.2 billion and invests in many firms through the trust. Walmart, Microsoft, which Gates co-founded, and Deere & Co., which manufactures agricultural equipment under the John Deere brand, are among the trust’s largest interests.

As reported by Reuters, earlier this year, Gates — who has acknowledged that he is “not a big beer drinker” — purchased a 3.76% stake in Heineken.

The Gates Foundation owns around 0.1% of Anheuser-Busch InBev thanks to the trust’s 1.7 million shares.

Source: CBS News