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Shares of Bud Light’s parent company, Anheuser-Busch InBev, have faced a challenging year following the brand’s partnership with transgender activist Dylan Mulvaney. However, the Bill and Melinda Gates Foundation Trust, which is responsible for managing the funds of the foundation co-founded by Microsoft’s Bill Gates and his ex-wife, sees the decline of the beer brand as an investment opportunity.
The trust bought 1.7 million Anheuser-Busch shares last quarter, according to a regulatory filing. The value of the transaction is estimated at $95 million.
The controversy surrounding Bud Light and Anheuser-Busch began in early April, shortly after the company designed and sent custom beer cans to Mulvaney commemorating “365 Days of Girl.”
Bud Light’s decision to partner with transgender activist Dylan Mulvaney, along with comments made by Bud Light’s vice president of marketing at the time, prompted calls for a boycott from some conservative groups. At the same time, the company faced criticism from LGBTQ activists for not taking a stronger stance to defend its decision.
These controversies had a clear impact on sales. Anheuser-Busch InBev reported a significant decline in profits due to the boycott, with US revenue down 10.5% in the second quarter and earnings before taxes, interest, and depreciation down 28.2%. In response to the collapse, the company was forced to lay off hundreds of workers.
And, last month, Bud Light snapped its 22-year streak as the top-selling beer in the U.S. annually when Mexican lager Modelo Especial surpassed it in sales for the year 2023.
Despite the challenges posed by the controversy surrounding the partnership with Mulvaney, Anheuser-Busch’s leadership sees a potential rebound.
Bud Light’s parent company added about 170,000 U.S. in the second quarter. conducted a survey of consumers, the majority of Americans still have a favorable opinion of the brand, with 80% expressing favorable or neutral feelings.
In an effort to regain its top spot, Bud Light refocused its advertising campaigns on American pastimes such as football, country music, and other beloved cultural elements.