Bill Gates seems to have confidence in the potential resurgence of the owner of Bud Light, as he recently invested $95 million to acquire 1.7 million shares of Anheuser-Busch, as reported by financial data firm TipRanks.
The billionaire, aged 67, made this investment through his Bill & Melinda Gates Foundation Trust in the second quarter of this year. The foundation, based in Seattle, holds assets with an estimated value of $69 billion.
Anheuser-Busch has been facing challenges since a marketing campaign involving transgender influencer Dylan Mulvaney promoting Bud Light on social media backfired, causing the beer to lose its top position. The company’s share price has declined by nearly 9% over the past six months and over 3% in the past five days due to a nationwide boycott of Bud Light.
Modelo Especial has taken the lead in year-to-date sales over Bud Light, accounting for 8.4% of beer sales through August 19, compared to Bud Light’s 8.2% share, according to Bump Williams Consulting and NielsonIQ.
However, Gates is betting that Modelo’s reign won’t last long. This isn’t the first time Gates has invested in beer brands, despite not being a frequent beer drinker, as he previously acquired a 3.76% stake in Heineken Holding NV.
Representatives from the Bill & Melinda Gates Foundation and Anheuser-Busch have not provided immediate comments on the matter.
Meanwhile, Bud Light has been striving to regain its core audience and distance itself from the problematic Mulvaney partnership by targeting football fans in a new advertisement.
Despite its efforts to win back boycotters, Bud Light faced criticism on social media. The Mulvaney controversy also impacted Captiv8, the marketing firm behind the Bud Light-Mulvaney partnership, which laid off more than a dozen employees shortly after a lavish trip to an award ceremony.
Other brands under Anheuser-Busch’s umbrella, such as Budweiser and Michelob Ultra, have also experienced sales declines, while non-Anheuser-Busch brands like Miller Lite, Coors Light, and Yuengling Lager have seen growth.
Anheuser-Busch InBev, the parent company, reported a significant drop in revenue and profit in the second quarter earlier this month.
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