Altria Group, the manufacturer of Marlboro cigarettes, has announced plans to sell more than $2.2 billion worth of shares in AB InBev, the world’s largest brewer known for brands like Bud Light and Stella Artois. The sale will involve offloading 35 million AB InBev shares, reducing Altria’s stake in the company, which currently stands at around 10%.
Altria’s decision to sell its AB InBev shares is described as an “opportunistic transaction” aimed at realizing a portion of the substantial return on its long-term investment. Altria’s CEO, Billy Gifford, expressed confidence in AB InBev’s long-term strategies, premium global brands, and experienced management team.
In addition to Altria’s share sale, AB InBev has agreed to buy $200 million worth of its shares from Altria. This move comes amid challenges faced by Bud Light, including a US boycott following its collaboration with transgender influencer Dylan Mulvaney. The backlash led to a decline in Bud Light sales, with rival brands like Modelo, Coors Light, and Miller Light gaining traction in the US market.
The controversy surrounding Bud Light’s marketing efforts, particularly its personalized can for Mulvaney, ignited debates on social media, with criticisms from both the right and the left. The term “woke,” often used derogatorily by the right, was invoked in response to Bud Light’s perceived alignment with left-leaning views.
AB InBev’s decision to put two executives on leave in response to the criticism further fueled debates on social media, leading to a drop in the company’s US-listed shares by almost 4% in extended trading in New York. Despite challenges in the US market, AB InBev reported a rise in global revenues, contributing to profits exceeding $6.1 billion in 2023.