Bill Gates maintains faith in AB InBev, the parent company of Bud Light, despite the beer’s decline in the industry. Consumer spending is currently propping up stocks, but for how long?
Bud Light faced backlash after its advertising campaign featuring transgender influencer Dylan Mulvaney. This controversy led to declining sales and a decrease in the stock of AB InBev. Despite these challenges, the Bill and Melinda Gates Foundation Trust made an optimistic bet on the company, purchasing 1.7 million shares valued at over $96 million.
Unfortunately, the investment has not been successful thus far. AB InBev’s stock has declined by nearly 2% since the foundation’s purchase and is down 6% this year. However, other brands under AB InBev, such as Corona and Stella Artois, continue to perform well. Additionally, the company has a diverse portfolio of brands across many countries.
Here are some key facts about AB InBev beyond Bud Light:
– AB InBev experienced a 5% increase in adjusted earnings in the second quarter, driven by international sales offsetting the US slump.
– According to a survey, 80% of Americans have a “favorable or neutral” perception of the Bud Light brand.
– AB InBev earned $57.8 billion in revenue last year, while Heineken, the second biggest beer company, earned $37.972 million.
– AB InBev owns 630 brands and operates in 150 countries, with popular local brands like Aguila in Colombia and Harbin in China.
AB InBev’s CEO, Michel Doukeris, revealed that customer feedback highlighted three common points: consumers want to enjoy their beer without controversy, want Bud Light to focus on beer, and want the brand to engage on platforms like the NFL, Folds of Honor, and Music.
Interestingly, despite claiming not to be a big beer drinker, Gates has shown interest in beer companies. He acquired a 3.76% stake in Heineken by purchasing 10.8 million shares worth over $900 million. This investment was made possible as Gates bought a stake in Femsa, Mexico’s largest brewer, in 2007, and Femsa later sold its brewery to Heineken in 2010.
In other related stories, Bud Light’s parent company is considered too big to boycott, and the popularity of St. Patrick’s Day in the US is explored. Additionally, the price of beer at Oktoberfest is found to defy economic logic.
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