Despite a challenging year for Bud Light, the parent company has a glimmer of hope in the form of nearly a $100 million bet from none other than Bill Gates, CNN reported.
Bill Gates makes $100 Million bet on Bud Light with Anheuser-Busch shares purchase
The Bill and Melinda Gates Foundation Trust recently acquired 1.7 million shares of Anheuser-Busch, as reported in a regulatory filing. This move signals Gates’ confidence in the beer company, which has been struggling with a significant sales decline for one of its flagship beer brands. The charitable foundation based in Seattle is reportedly managing assets valued at $69 billion.
Five months ago, the St. Louis, Missouri-based brewer enlisted transgender influencer Dylan Mulvaney to promote Bud Light on her social media channels. But the marketing campaign ended disastrously, causing Bud Light to lose its top position, according to The Post.
Furthermore, Senator Ted Cruz from Texas is actively investigating Anheuser-Busch over allegations that the company used its partnership with Mulvaney to reach an underage demographic. Cruz asserts that the company has not yet shared the relevant documents required for his inquiry, reported Komonews.
During the past six months, Anheuser-Busch’s stock price has seen a decline of nearly 9%, with a recent 3% drop to $56.08 over the past five days. This dip can be attributed to an ongoing nationwide boycott of Bud Light, which shows no signs of getting over.
Modelo Especial dominates beer sales, while Bill Gates bets on its future
In the world of beer, Modelo Especial remains the reigning champion as it continues to outperform Bud Light. According to reports by Bump Williams Consulting and NielsonIQ, last week, Modelo Especial expanded its lead in year-to-date sales when compared to Bud Light. Modelo now holds an 8.4% share of beer sales in stores through August 19th, while Bud Light lags slightly behind with an 8.2% share.
“More consumers are buying Modelo more frequently and in greater quantities before the summer ends,” Williams, the head of the consultancy, told The Post.
Bill Gates is making a bold bet that Modelo’s reign as the top beer won’t last much longer.
This isn’t the first time the Microsoft founder has invested in beer brands, even though he mentioned in a 2018 Reddit Q&A that he’s “not a big beer drinker.”
In February, Gates acquired a 3.76% stake in Heineken Holding NV by purchasing 10.8 million shares of the Dutch beverage giant, valued at approximately $939.87 million at the time of the acquisition.
