Anheuser-Busch InBev (NYSE:BUD), the Bud Light and Coors owner, may have faced the worst of its sell-off, having faced strong backlash surrounding an advert with transgender influencer Dylan Mulvaney, analysts believe.
Bud Light lost its crown as America’s number-one beer earlier this year—albeit to fellow AB InBev brand Modelo—and sales of the drink have struggled in August, with weekly volumes dropping by as much as 30%, according to Nielsen data.
Over the last three months, sales of the beer dropped by around 26% on average, and analysts believe other AB InBev brands like Busch and Michelob have suffered falls in sales because of the controversy.
On the other hand, beer brands like Coors, Miller, and Modelo are continuing to gain share, the analyst added.
“Our estimates and the stock price increasingly discount a base case where the current rates of volume decline in ABI's US portfolio continue through the first quarter of 2024, but… there are grounds for believing the worst is past,” the analyst said.
One person heeding the analyst's advice is Microsoft founder Bill Gates, with the Bill and Melinda Gates Foundation Trust purchasing around US$95 million worth of AB InBev shares.
Gates purchased the shares around the time of the group’s second-quarter trading update last month and the trust’s stake is estimated to be down around 2%.
Ab InBev is down more than 7% year-to-date, but remained relatively flat on Thursday, having opened at just under €52.