Bill Gates’ Foundation Made a Nearly $100 Million Bet on Bud Light

The Bill and Melinda Gates Foundation Trust has shown a vote of confidence in Anheuser-Busch, the parent company of Bud Light, by purchasing 1.7 million shares valued at approximately $95 million, according to recent regulatory filings. This investment comes at a challenging time for the beer conglomerate, which has experienced a significant decline in sales of its flagship brand, Bud Light.

The trust’s acquisition of Anheuser-Busch shares coincided with the company’s earnings report, which encompassed the fallout from a controversial partnership with transgender influencer Dylan Mulvaney. Anheuser-Busch faced backlash when it sent a customized Bud Light can to Mulvaney, resulting in a transphobic backlash and alienation of some core customers. The company’s subsequent response further aggravated members of the LGBTQ+ community.

Although Bill Gates’ trust has shown faith in Anheuser-Busch with its stock purchase, the investment has not yielded positive returns so far. Since the acquisition, A-B’s stock has declined by nearly 2%, and the company’s stock value has decreased by approximately 7% over the course of the year.

Anheuser-Busch reported a 10% decline in US revenue in the second quarter, primarily driven by diminishing Bud Light sales. Sales to US retailers fell by 14%, lagging behind the broader beer industry. This drop was attributed to reduced Bud Light volume, resulting in a $395 million revenue decrease in North America.

In a surprising development, Modelo surpassed Bud Light in sales at grocery and beer stores, marking the first time Modelo has outperformed Bud Light on a year-to-date basis, albeit with a slim margin. Modelo claimed an 8.34% share of dollars spent on beer, while Bud Light secured 8.28% through August 12, according to NIQ data.

Anheuser-Busch also announced corporate layoffs in July, affecting less than 2% (approximately 380 positions) of its US employee population.

Bill Gates’ trust has previously invested in other beer brands. Earlier this year, the foundation purchased nearly $1 billion worth of shares in Heineken Holding, the parent company of the Dutch beer brand Heineken.