The corporation behind Marlboro cigarettes is selling $2.3 billion worth of shares in major brewing company Anheuser-Busch InBev. Let’s take a closer look into the reasons behind this massive selloff.
A Year From The Controversy
The announcement was made on Thursday,
After the controversy involving the Bud Light ad campaign that featured a transgender influencer and activist Dylan Mulvaney.
Altria Letting Go Of Millions Of Shares
The United States manufacturer Altria Group,
Which is responsible for producing Marlboro cigarettes, is making a plan to sell its shares in Anheuser-Busch InBev, the parent company of Bud Light.
35 Million Shares
Altria Group it set to sell 35 million out of its 197 million shares,
And if they want to they have the option to sell an extra 5.25 million shares.
Significant Shareholder Since 2016
Altria initiated its shareholder status in 2016, eventually they would acquire 10% stake in AB InBev.
AB InBev reported that it had plans to buy back $200 million of Altria’s shares.
Value Of $2.3
At the time the market closed on Wednesday
Those 35 million shares were worth $2.3 billion.
Announcement From The Public
The chief executive of Altria, Billy Gifford made a public annoucnment,
calling the sale “an opportunistic transaction that realizes a portion of the substantial return on our long-term investment.”
United States Sales Take A Hit
Despite their confidence, Bud Light Sales in the United States have experienced a significant hit over the last year,
A decline which has been connected to the boycott of the beer brand since its collaboration with Mulvaney.
Accusations Of “Woke” Individuals
The brand also sent her a personalized beer to celebrate her gender transition,
Which resulted in conservative groups accusing the formerly “masculine” beer label of “going woke.”
A Partnership That Stirred Controversy
In April 2023,
Mulvaney posted a sponsored message on social media that promoted the Bud Light Contest. A wave of negative backlash hit her and the beer brand.
Demands For Boycott
Certain groups reacted in a volatile way, they called for the United States to boycott all of the
One viral trend emerged, showing Bud Light consumers emptying bottles and cans of the Bud Light beer.
Mulvaney Makes A Statement
The beer company faced criticism from anti-LGBTQ consumers, but the company was also condemned by LGBTQ activists and spokespeople.
Mulvaney herself expressed her disappointment with the company, saying they never reached out to her despite all the death threats and intimidation from their consumers.
Celebrities Join In
Public figures like rapper Kid Rock, politician and Florida Governor Ron DeSantis,
and NFL player Trae Waynes also joined in on the public derision and boycott.
Granting Them Permission
She told reporters
“For a company to hire a trans person and then not publicly stand by them is worse in my opinion than not hiring a trans person at all because it gives customers permission to be as transphobic and hateful as they want.”
Not Number One In The U.S. Anymore
The few weeks following the fallout would prove to be significant for Bud Light, it lost its position as the fastest-selling beer in the United States,
They were replaced by Modelo.
Remains Dedicated
Subsequently, a spokesperson for the company would release a statement in response to Mulvaney’s criticisms,
The spokesperson claimed the company remained “committed to the programs and partnerships we have forged over decades with organizations across a number of communities, including those in the LGBTQ+ community.”
“Volume Decline in Bud Light”
In February, the company admitted that Bud Light sales had declined in the United States,
With their overall annual revenue for AB InBev falling by 9.5% in the United States market, which it explained was “primarily due to the volume decline of Bud Light.”
An Issue For American’s
While Bud Light’s sales have significantly declined in the last year, the boycott doesn’t seem to have affected global sales.
Other countries have paid very little attention to the controversy happening in the United States.
An Remarkable Inventory
The company has an impressive inventory,
They own popular beer brands such as Stella Artois, Corona, and Becks.
International Sales Remain Unaffected
International revenue for AB InBev increased by 7.8% in 2023, bringing its global annual profits to more than $6.1 billion.
Despite the transgender Ad Controversy sparking a $2.3B Stock Selloff, which first appeared on Liberty & Wealth.
