InBev (AB InBev):
- Bill Gates' foundation trust has once again invested in a multinational brewer, this time acquiring shares in Anheuser-Busch InBev, the world's largest beer maker.
- The Bill & Melinda Gates Foundation Trust purchased approximately 1.7 million shares in AB InBev for just under $96.6 million.
- This move by Gates' trust comes amidst a challenging year for Bud Light's parent company, Anheuser-Busch.
Controversy Surrounding Bud Light:
- The brewer's share price has seen a decline of almost 9% this year, largely due to the backlash against Bud Light's collaboration with transgender influencer Dylan Mulvaney.
- Mulvaney had received a personalized Bud Light can from AB InBev to mark one year since her transitioning, which unfortunately became a target for transphobic abuse, leading to calls for a boycott of the Bud Light brand.
- As a result of this controversy, AB InBev's US revenue plummeted by 10.5% YoY in the second quarter.
- Despite the challenges, AB InBev's CEO, Michel Doukeris, pointed out "signals of improvement" in the brewer's US business.
Market Analysis:
- Analysts from AllianceBernstein remarked that AB InBev's challenges seem to persist, with the company's US volumes down by 12 percentage points as of the week ending 26 August.
- Molson Coors appears to be benefiting from the Bud Light controversy, with its volumes seeing an increase.
- Bud Light's sales volumes were down by 30% YoY for the week ending 26 August.
- Modelo recently surpassed Bud Light in sales at grocery and beer stores, holding a slightly higher share of dollars spent on beer.
Other Investments by Gates:
- This isn't Gates' first foray into the beer industry. Earlier in the year, the foundation trust acquired shares in Heineken, with a purchase of 10.83 million shares in Heineken Holding N.V. for €883 million ($947.3 million).
- Gates secured a direct 3.76% share in Heineken Holding NV and an indirect share of 1.89% in Heineken NV.
Does Bill Gates foundation get money from the government for grants or anything else?
- The Bill & Melinda Gates Foundation is a private philanthropic foundation, and while it collaborates with various governments and organizations globally, it primarily funds its initiatives through its endowment. The foundation's financials are publicly available, and any government funding would be disclosed in their annual reports.
Could this investment by Gates be viewed as a bailout? Why or why not?
- Osiris believes that Bud Light holds a significant social position and perceives this investment as a potential bailout. Given the recent controversies surrounding Bud Light and the subsequent decline in its sales and share price, Gates' investment could be seen as a show of confidence in the company's potential for recovery. However, it's essential to note that while the investment is substantial, it may not be large enough to be considered a "bailout" in the traditional sense. Instead, it might be viewed as a strategic investment based on the foundation trust's assessment of the company's future prospects.