Bill Gates said in 2018 that he wasn’t “a big beer drinker.” But the Bill & Melinda Gates Foundation Trust recently revealed a large investment in beleaguered Bud Light maker Anheuser-Busch InBev (NYSE: BUD). Here’s why that big bet could pay off.
Anheuser-Busch InBev has been punished by a boycott of Bud Light by some who see the company as supporting transgender people. For over 20 years, Bud Light reigned as the top beer (by sales) in the United States. By June, the boycott caused it to slide into second place (behind another Anheuser-Busch InBev product, Modelo Especial). CEO Michel Doukeris acknowledged the lower numbers were due to the Bud Light boycott.
But the negative impact of the boycott could be waning. A recent Deutsche Bank survey found that the percentage of respondents who say they’re very unlikely to buy Bud Light plunged from 18% in July to 3% in August. Meanwhile, Doukeris says that consumers “want to enjoy their beer without a debate” and want Bud Light “to focus on beer” — and he’s heard them.
Overall, the company’s business remains solid. Even with the Bud Light boycott weighing on growth, Anheuser-Busch InBev’s revenue rose 7.2% year over year in the second quarter. Its North American market share has also been stable since late April. Any uptick in customers returning to Bud Light should provide a boost to Anheuser-Busch InBev.
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