Florida Gov. Ron DeSantis announced an investigation into AB InBev, the beverage company behind Bud Light, as the company’s stock prices plummeted following a conservative boycott earlier in the year.
Speaking on Fox News Thursday night about the issue, DeSantis said the state held a large amount of AB InBev stock in the state’s FRS pension fund prior to the crash.
“Well, we had over $50 million worth of InBev stock in retirement. Of course, Florida’s pension funds are about $180 billion,” DeSantis said. “So it’s quite a big undertaking, but it’s absolutely hurt the teachers. It has absolutely hurt other retirees.”
AB InBev posted significant losses earlier in the year after the company launched a Bud Light marketing campaign with transgender social media influencer Dylan Mulvaney. As a result of the backlash, Bud Light sales fell sharply, slipping to second place as America’s best-selling beer after more than two decades.
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DeSantis said the company’s activities have caused the state pension fund to decline, which could affect retired officials.
“When you start pursuing a political agenda at the expense of your shareholders, it doesn’t just affect very wealthy people. It affects hard-working people who have been police officers, firefighters and teachers, as far as pensions go,” he said.
As a result, DeSantis said the state will launch an investigation into AB InBev to determine if the company has fiduciary liability.
“It could be something that leads to a derivative lawsuit being filed on behalf of Florida pension fund shareholders, because at the end of the day, if you put the business aside to focus on your social agenda, there must be penalties,” DeSantis explained.
The governor has long been a critic of companies that operate with stakeholder management, and earlier this year signed into law a bill that eliminates the use of environmental, social and governance (ESG) factors in determining government investments.
The ESG concept has come under criticism in recent years, as critics argue that it diverts a company’s focus from its responsibility to shareholders.
On the other hand, proponents argue that ESG is a tool that helps companies avoid risk by better managing environmental and social issues such as abortion and DEI.
Florida CFO Jimmy Patronis responded to DeSantis’ announcement on Thursday with the following statement.
“The failure of Bud Light has been taught in business schools for decades. It will be a lesson in why corporations should stay out of politics; about what happens when you turn your back on your customers. It’s a story of arrogance and how a lack of accountability has led to one of America’s greatest companies of all time wasting money and failing local distributors who employ so many people across American communities. The governor’s action is 100% correct. We must put the participants in our pension system first, and examining the impact of Anheuser-Busch InBev on the state’s pension fund is a sensible move. As always, Governor DeSantis is over the target. This company has had its head in the sand for too long and should take this opportunity to correct its course. In addition, other CEOs should take this as an opportunity to close their “wake” departments. It may endear you at cocktail parties, but it will cost your company, your shareholders, and maybe your job.”
CFO Jimmy Patronis
News 6 has reached out to state officials to determine how much the pension fund has lost as a result of its AB InBev stock and is awaiting a response.
DeSantis wrote a letter to the State Board of Administration calling for an investigation, which can be read below.
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