Marlboro sells $2.2 billion of shares to the owner of Bud Light

2024-03-14 13:05:00, Kosova & Bota CNA

Marlboro cigarette maker Altria Group says it will sell more than $2.2 billion in shares in AB InBev, owner of the Bud Light and Stella Artois beer brands.

The move will see Altria offload 35 million shares of AB InBev.

The tobacco giant currently owns about a 10% stake in the world's largest brewer, worth about $12.7 billion.

Bud Light's sales have been hit after a boycott in the US over its work with transgender influencer Dylan Mulvaney.

The sale is "an opportunistic transaction that realizes a substantial return on our long-term investment," Altria Chief Executive Billy Gifford said in a statement.

"Our continued investment reflects continued confidence in ABI's long-term strategies, premium global brands and experienced management team," he added.

Belgium-based AB InBev also said in a filing with regulators that it had agreed to buy $200 million of its shares from Altria.

In February, the company — which also owns a stable of other major beer brands including Beck's, Corona and Leffe — said its annual U.S. revenue fell 9.5% "primarily due to a decline in Bud Light volume ".

However, globally AB InBev saw total revenue rise 7.8% for the year, which helped boost 2023 earnings to more than $6.1 billion.

Bud Light faced a wave of criticism after sending a personalized beer can to Ms. Mulvaney for an online post.

Within weeks, industry analysts reported that Modelo—sold in the U.S. by a rival firm—had replaced Bud Light as the best-selling beer in the U.S., and rivals like Coors Light and Miller Light were quickly gaining ground.

After Ms. Mulvaney's social media post promoting beer in personalized cans, many on the right criticized the company for waking up.

Woke is an informal term from the US, meaning alert to injustices and discrimination in society, especially racism and sexism. It is often used by the right to disparage left-wing views on topics from climate change to minority support.

Musician Kid Rock, NFL player Trae Waynes and model Bri Teresi all shared videos of themselves shooting Bud Light cans. The company's response to the criticism - which included the firing of two executives blamed for the relationship - was subsequently condemned by many on the left.

Shares of US-listed AB InBev fell nearly 4% in extended trading in New York./ CNA