The Maker of Marlboro, Altria Group, to Sell $2.2bn Shares in AB InBev
By Peter Hoskins, Business Reporter
Image source: Getty Images
The maker of Marlboro cigarettes, Altria Group, says it will sell more than $2.2bn (£1.7bn) of shares in AB InBev, the owner of the Bud Light and Stella Artois beer brands.
The move will see Altria offloading 35 million AB InBev shares.
The tobacco giant currently owns around 10% of the world’s biggest brewer, worth about $12.7bn.
“Our continued investment reflects ongoing confidence in ABI’s long-term strategies, premium global brands and experienced management team,” said Altria’s chief executive, Billy Gifford, in a statement.
Belgium-based AB InBev also said in a filing with regulators that it had agreed to buy $200m 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 revenues in the US fell by 9.5% “primarily due to the volume decline of Bud Light.”
However, globally AB InBev saw total revenues rise by 7.8% for the year, which helped boost 2023 profits to more than $6.1bn.
Bud Light faced a wave of criticism after it sent a personalized can of beer to Ms Mulvaney for an online post.
Following Ms Mulvaney’s social media post promoting the beer with her personalized can, many on the right criticized the company for going “woke”.
Woke is an informal term from the US, meaning alert to injustice and discrimination in society, particularly racism and sexism. It is often used by the right in a derogatory way towards left-leaning views on topics from climate change to support for minorities.
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 putting two executives blamed for the relationship on leave – was subsequently decried by many on the left.
AB InBev’s US-listed shares fell by almost 4% in extended trading in New York.
