Bill Gates made a bet of nearly $100 million on Bud Light

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Bill Gates, Co-Chair of the Bill & Melinda Gates Foundation

New York

Bud Light’s parent company is having a miserable year. But there is at least one notable investor who believes in Anheuser-Busch: Bill Gates.

The Bill & Melinda Gates Foundation last quarter bought 1.7 million shares of Anheuser-Busch, worth about $95 million, according to a regulatory filing, indicating that Gates had confidence in the brewer that was dealing with a sharp one-year drop in sales. One of the largest types of beer.

Gates bought the stock just as AB announced earnings that fully included the fallout from Bud Light’s partnership with transgender influencer Dylan Mulvaney. Her decision to send her a custom box sparked a transphobic backlash and alienated some of the company’s core customer base. The company’s subsequent response angered members of the LGBTQ community.

But Gates has lost money on his investment so far: AB stock is down nearly 2% since he bought it. The stock is down about 7% for the year.

Last month, AB said its US revenue fell 10% in the second quarter, due to lower Bud Light sales.

The company’s sales to retailers in the US fell 14%, underperforming the broader beer industry, mainly due to the lower volume of Bud Light it sold. Revenue decreased by $395 million in North America during the period, compared to the same period last year. This figure includes sales in Canada, where revenue rose, suggesting that the recession was confined to the United States.

A few weeks later, Modelo overtook Bud Light in sales in grocery and beer stores, according to NIQ data, marking the first time Modelo has outperformed Bud Light year-over-year so far. However, the difference is slim as Modelo owns an 8.34% share of dollars spent on beer compared to Bud Light’s 8.28% as of August 12.

03:24 – Source: CNN

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In July, AB also announced layoffs within its corporate ranks, affecting “less than 2%” (or about 380 jobs) among its US employees.

Gates, who has previously admitted that he is “not a big drinker,” has bought other beer brands as well. Earlier this year, the foundation also bought $1 billion worth of shares in Heineken Holding, the parent company of Dutch beer.

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