Bill Gates' Beer: Which Brewery Did He Buy?

Bill Gates, the billionaire founder of Microsoft, has made several investments in beer companies despite claiming that he is not a big beer drinker. In 2023, Gates' foundation trust, the Bill and Melinda Gates Foundation Trust, bought shares in Anheuser-Busch, the makers of Bud Light, for nearly $100 million. The same trust also invested in Heineken Holding NV, acquiring a 3.76% stake in the company for around $900 million. Gates also personally invested in Heineken, purchasing shares worth approximately $902 million. These investments in the beer industry are particularly notable given Gates' self-proclaimed lack of enthusiasm for beer.

Bill Gates buys a stake in Heineken

Bill Gates has added to his portfolio of beer companies by acquiring a minority stake in Heineken Holding NV, the controlling shareholder of the world's second-largest brewer. The Microsoft founder and philanthropist purchased 10.8 million shares in Heineken, worth approximately 883 million euros ($939.87 million or $902 million at different sources). This purchase gives Gates a direct 3.76% share in Heineken Holding NV and an indirect 1.89% share in Heineken NV, the maker of Heineken beer, as well as other well-known brands like Amstel, Moretti, and Sol.

The transaction, which took place on February 17, 2023, was made through two separate entities. Gates bought 6.65 million shares as a private individual and an additional 4.18 million shares through the Bill & Melinda Gates Foundation Trust. The shares were purchased from Mexico's FEMSA (Fomento Economico Mexicano SAB), a Coca-Cola bottler and convenience store operator, which decided to offload its stake in Heineken following a strategic review.

This investment in Heineken comes despite Gates' comment in 2018 that he is "not a big beer drinker." However, he has previously shown interest in the beverage industry, having invested in other beer brands and Coca-Cola bottlers. This includes a $392 million stake in FEMSA in 2007.

The acquisition of Heineken shares adds to Gates' growing presence in the beer market. In September 2023, it was reported that the Bill & Melinda Gates Foundation Trust had purchased 1.7 million shares in Anheuser-Busch InBev, the parent company of Bud Light, for just under $96.6 million. This investment was made during a challenging period for the company due to a backlash against Bud Light's partnership with transgender influencer Dylan Mulvaney, which resulted in a transphobic backlash and a decline in sales.

Despite his comment about not being a big beer drinker, Gates' investments in Heineken and Anheuser-Busch InBev demonstrate his confidence in the beer industry and his willingness to support companies facing public relations challenges.

The Bill & Melinda Gates Foundation Trust

Bill Gates has acquired stakes in several beer companies, including Heineken and Anheuser-Busch InBev, through his foundation trust. The Bill & Melinda Gates Foundation Trust is a charitable organisation launched by the billionaire Microsoft founder and his former wife, Melinda Gates.

In February 2023, Gates purchased a 3.76% stake in Heineken Holding NV, the controlling shareholder of the world's second-largest brewer, for approximately $902 million. Of this, 6.65 million shares were bought in his individual capacity, and 4.18 million shares were acquired through the foundation trust. The purchase was made from Mexico's FEMSA, which was selling its stake in the brewing company.

The foundation trust also invested in the world's largest beer maker, Anheuser-Busch InBev, in September 2023. It bought 1.7 million shares valued at around $95 million, despite the company facing a sales slump due to a controversial partnership with transgender influencer Dylan Mulvaney. This investment was made through the Bill & Melinda Gates Foundation Trust, which manages the large endowment that the multibillionaire couple bestowed to the foundation.

The foundation trust's investments in beer companies might seem counterintuitive, given that Gates has stated he is "not a big beer drinker". However, these acquisitions demonstrate his confidence in the beverage industry and his belief in the potential of these companies, despite any controversies or sales slumps they may be facing.

In addition to its investments in Heineken and Anheuser-Busch InBev, the Bill & Melinda Gates Foundation Trust has also diversified its portfolio by investing in other sectors, such as the Dutch online grocer Picnic BV and Dutch fertiliser producer OCI NV.

Shares purchased from Mexico's FEMSA

In February 2023, Bill Gates bought shares in Heineken Holding NV, the controlling shareholder of the world's second-largest brewer. Gates acquired 10.8 million shares worth around $900 million, giving him a 3.76% stake in the company. These shares were purchased from Mexico's FEMSA, a Coca-Cola bottler and convenience store operator, which sold its entire stake in Heineken.

FEMSA, or Fomento Economico Mexicano SAB, sold 18 million shares in Heineken Holding NV, comprising a €3.7 billion stock and equity-linked sale. The shares in Heineken NV were priced at €91 each, while the shares in Heineken Holding were sold at €75 each. This sale represented a complete offloading of FEMSA's holdings in Heineken, as the company had announced its plans to do so following a strategic review.

Bill Gates' purchase of 10.8 million shares from FEMSA gave him a direct 3.76% share in Heineken Holding NV. Additionally, he acquired an indirect share of 1.89% in Heineken NV, in which Heineken Holding owns a controlling stake of 50%. Gates' total investment in Heineken amounted to approximately $902 million, with 6.65 million shares bought in his individual capacity and 4.18 million shares purchased through the Bill & Melinda Gates Foundation Trust.

This investment in Heineken adds to Bill Gates' portfolio of beer company investments. In 2023, the Bill & Melinda Gates Foundation Trust also invested in Anheuser-Busch InBev, the parent company of Bud Light, by purchasing 1.7 million shares worth nearly $100 million. Despite stating that he is ""not a big beer drinker,"" Gates has demonstrated a strategic interest in the beer industry through these significant investments.

Gates' investment in Anheuser-Busch InBev

In September 2023, Bill Gates invested in Anheuser-Busch InBev, the world's largest beer maker and the parent company of Bud Light. The Microsoft tycoon bought shares in the brewer through the Bill & Melinda Gates Foundation Trust. An SEC filing revealed that the trust paid approximately $96.6 million for 1.7 million shares in AB InBev.

At the time of Gates' investment, Anheuser-Busch InBev was facing a challenging period due to a backlash against its Bud Light brand. The controversy was sparked by a partnership with transgender influencer Dylan Mulvaney, which led to a transphobic backlash and a boycott of the brand. As a result, AB InBev's US revenue and EBITDA fell by 10% and 28% respectively in the second quarter of 2023. Despite the slump in sales and stock price, Gates' investment signalled his confidence in the company and its potential for a turnaround.

The investment in Anheuser-Busch InBev was not Gates' first foray into the beer industry. Earlier in 2023, he had acquired shares in Heineken Holding, the parent company of Heineken, through both the foundation trust and personal purchases. Gates' total stake in Heineken Holding was valued at approximately $900 million, giving him a direct and indirect share in Heineken NV, the brewer of Heineken beer.

While Gates has stated that he is not a big beer drinker, his investments in Anheuser-Busch InBev and Heineken demonstrate his interest in the beer industry and his belief in the potential of these companies. With his financial backing, Gates is betting on a potential rebound in the performance of these brewers, particularly in the case of Anheuser-Busch InBev, which has faced recent challenges.

Overall, Gates' investment in Anheuser-Busch InBev reflects his strategic approach to investing and his willingness to support companies facing headwinds, with the potential for long-term gains.

The future of AB InBev

In 2023, Bill Gates bought a stake in AB InBev, the world's largest beer maker and the parent company of Bud Light. The future of AB InBev looks promising, despite a challenging period for the company. Here are some factors that could contribute to the company's future success and growth:

Diverse Brand Portfolio: AB InBev has a diverse portfolio of brands, including popular names such as Corona and Stella Artois. While Bud Light has faced a sales slump, other brands under the AB InBev umbrella have been performing well and contributing to the company's overall success. With 630 brands across 150 countries, the company has a strong global presence and a loyal customer base for its diverse range of beverages.

Strong Financial Performance: Despite the challenges faced by the Bud Light brand, AB InBev's overall financial performance remains solid. In the second quarter of 2023, the company's revenue rose 7.2% year over year, demonstrating the resilience of its business model. AB InBev's international sales have been particularly strong, with a 5% increase in adjusted earnings for the quarter ended June 30, outperforming the expected 0.4% consensus forecast.

Stabilizing Market Share: While Bud Light's market share has taken a hit due to the boycott, there are signs that the negative impact may be waning. Surveys indicate a decrease in the percentage of respondents who are very unlikely to buy Bud Light, suggesting that consumers may be moving past the controversy. AB InBev's North American market share has also remained stable since late April, indicating a potential for growth if customer sentiment continues to improve.

Learning from Controversy: AB InBev appears to have taken feedback from the controversy to heart. The company's CEO, Michel Doukeris, acknowledged consumers' desire to "enjoy their beer without a debate" and has indicated that AB InBev will focus on beer and concentrate on platforms that appeal to all consumers. By listening to its customers and making strategic adjustments, AB InBev can rebuild trust and regain lost market share.

Strategic Investments: The investment from the Bill & Melinda Gates Foundation Trust is a significant vote of confidence in the company's future prospects. With nearly $100 million invested in AB InBev, the Gates Foundation joins other prominent investors who believe in the company's long-term potential. This influx of capital can be used to strengthen the company's position, develop new products, and expand its global reach.

In conclusion, while AB InBev has faced challenges due to the backlash against Bud Light, the company's future looks bright. With a diverse brand portfolio, strong financial performance, stabilizing market share, and strategic investments, AB InBev is well-positioned to navigate through the current controversy and emerge as a stronger and more resilient beverage company. The support from investors like Bill Gates underscores the potential for growth and recovery in the coming years.

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