Bill Gates Invests in Anheuser-Busch Despite Sales Slump
New York – Bill Gates, co-chairman of the Bill and Melinda Gates Foundation, has shown confidence in Anheuser-Busch by purchasing 1.7 million shares of the company, valued at approximately $95 million. This investment comes at a time when the beer company is facing a steep sales slump.
Anheuser-Busch, the parent company of Bud Light, has been struggling with a decline in sales of their popular beer. The company’s decision to send a customized can to transgender influencer Dylan Mulvaney caused a transphobic backlash and alienated some of their core customer base. The subsequent response from the company also angered members of the LGBTQ community.
However, Gates’ investment has not yet yielded positive results. Since his purchase, A-B’s stock has gone down nearly 2%, and it is down about 7% for the year.
In the second quarter, A-B reported a 10% decrease in US revenue, mainly due to the falling sales of Bud Light. The company’s sales to US retailers declined by 14%, underperforming the wider beer industry. Revenue in North America fell $395 million during the period, with the decline mainly happening in the United States.
Anheuser-Busch faced another setback as Modelo, a competing brand, overtook Bud Light in sales at grocery and beer stores. This is the first time Modelo has beaten Bud Light on a year-to-date basis, although the difference is minimal.
In addition to Anheuser-Busch, Gates’ foundation also purchased nearly $1 billion worth of shares of Heineken Holding, the parent company of Dutch beer brand, Heineken.
Despite the company’s recent struggles, Gates has shown his confidence in Anheuser-Busch. The foundation’s investment in the company demonstrates Gates’ belief in the long-term potential of the beer giant.