Jordan Vonderhaar/Bloomberg/Getty Images/File
Bill Gates, co-chair of the Bill and Melinda Gates Foundation
New York CNN –
Bud Light’s parent company is having a miserable year. But there is at least one prominent investor that believes in Anheuser-Busch: Bill Gates’ foundation.
The Bill and Melinda Gates Foundation Trust bought 1.7 million Anheuser-Busch shares worth about $95 million last quarter, according to a regulatory filing. This shows that Gates has confidence in the beer company, which is struggling with a sharp 1-year decline in sales of one of its biggest beers.
Gates’ endowment fund bought the stock around the time AB reported earnings that fully covered the fallout from Bud Light’s partnership with transgender influencer Dylan Mulvaney. The decision to send her a customized can sparked a transphobic backlash and angered some of the company’s core customers. The company’s subsequent response then angered members of the LGBTQ community.
But Gates’ Trust has so far lost money on his investment: AB shares have fallen almost 2% since he bought it. The stock is down about 7% for the year.
Last month, AB said its U.S. sales fell 10% in the second quarter, hurt by falling Bud Light sales.
The company’s sales to U.S. retailers fell 14%, lagging the broader beer industry, largely due to a decline in the volume of Bud Light sold. North America revenue fell $395 million in the period compared to the same period last year. That figure included sales in Canada, where revenue rose, suggesting the decline was limited to the United States.
A few weeks later, Modelo overtook Bud Light in sales at grocery and beer stores, according to NIQ data, marking the first time since the beginning of the year that Modelo overtook Bud Light. The difference is small, however, as Modelo holds an 8.34% share of dollars spent on beer as of August 12, versus 8.28% for Bud Light.
03:24 – Source: CNN
Kid Rock declared a Bud Light boycott. Here’s what CNN saw at his bar
In July, AB also announced layoffs across its corporate ranks, affecting approximately “less than 2%” (or approximately 380 positions) of its U.S. employees.
Gates, who has previously admitted he is “not a big beer drinker,” has also purchased other beer brands through his trust. Earlier this year, the foundation also bought nearly $1 billion worth of shares in Heineken Holding, the Dutch beer maker’s parent company.
Correction: An earlier version of this story incorrectly identified the investor. It is the Bill and Melinda Gates Foundation Trust.