In 2023, Anheuser-Busch InBev BUD faced substantial challenges. The company was embroiled in a media frenzy because of a highly publicized transgender controversy linked to a Bud Light campaign. The controversy took a toll on the company, leading to a 20% drop in its share prices in May. To compound the issues, the company laid off over 300 U.S. employees.
In response to the crisis, the CEO urged the public to consider the impact of the boycott on the company's employees, but that didn't help the situation. Bud Light plummeted from the top spot to 14th place in beer rankings.
Don’t Miss:
- Until 2016 it was illegal for retail investors to invest in high-growth startups. Thanks to changes in federal law, this Kevin O’Leary-Backed Startup Lets You Become a Venture Capitalist With $100
- Airbnb was worth $47 billion at IPO. This New ‘Airbnb For RV's' Platform Takes On The $540 Million RV Rental Market With 25% In Savings And $50,000 For Renters is open for anyone to invest.
Although the boycotts continue, it seems not everyone has lost hope in the beer's ability to rebound. Business magnate Bill Gates, through the Bill & Melinda Gates Foundation Trust, acquired 1,703,000 shares of BUD. The shares are currently valued at approximately $95 million.
Investing in Anheuser-Busch during this downturn signifies confidence in the beer company's ability to overcome its current challenges and regain value in the market. For someone like Gates, the investment may also reflect a long-term perspective, suggesting he sees the potential for BUD to rebound and grow in value over time.
Gates, who says he is "not a big beer drinker" invested $900 million in Heineken stock at the onset of the Bud Light controversy.
Anheuser-Busch, which saw a 10.5% decline in U.S. sales during its second quarter from April through June, recently launched its largest-ever NFL campaign.
The promotion, titled "Easy to Sunday," encompasses fresh TV and online advertisements slated to air throughout the season, along with exclusive Bud Light cans for 23 NFL teams. The cans sport team colors, logos and player illustrations, though not all NFL teams have participated in this particular collaboration with Bud Light.
The cans are now available in stores and are equipped with QR codes that can be scanned for an opportunity to win one of 2,000 free subscriptions to NFL Sunday Ticket from YouTube and YouTube TV as well as e-gift cards for NFL merchandise from Fanatics Inc.
The latest commercial spotlights "real fans and their Sunday tradition," the company said in a recent news release. This includes the story of a Philadelphia Eagles fan who is a military veteran, demonstrating unwavering dedication to her team, even during deployments, regardless of the time of night.
See more on startup investing from Benzinga:
- Consuming too much caffeine but still tired? This startup found The Secret Behind Why Your Coffee and CBD Might Not Be Working
- Gamers are selling their old gaming items for millions. Learn why everyday gamers and investors are claiming a stake in their side hustles and how they invested over $1.2 million in this startup
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
