- Written by Peter Hoskins
- business reporter
image source, Getty Images
Altria Group, the maker of Marlboro cigarettes, said it would sell more than $2.2bn (£1.7bn) of its stake in AB InBev, owner of the Bud Light and Stella Artois beer brands.
The move means Altria will sell 35 million shares of AB InBev stock.
The tobacco giant currently owns about 10% of the world's largest beer company, worth about $12.7 billion.
Altria CEO Billy Gifford said in a statement that the sale was an “opportunistic transaction that realizes a portion of the substantial benefits of our long-term investment.”
“Our continued investment reflects our continued confidence in ABI's long-term strategy, premium global brand and experienced management team,” he added.
Belgium-based AB InBev also said in a regulatory filing that it had agreed to buy $200 million in stock from Altria.
The company, which also owns other major beer brands including Beck's, Corona and Leffe, announced in February that its annual U.S. sales were down 9.5% “primarily due to lower Bud Light volumes.”
But globally, AB InBev's total annual revenue rose 7.8%, pushing its 2023 profit to more than $6.1 billion.
Bud Light faced a wave of criticism after sending Mulvaney a personalized can of beer for an online post.
Mulvaney's social media posts promoting specialty beer cans prompted many on the right to criticize the company for being “woke.”
“Walk” is an informal term in the United States that means to be alert to injustice and discrimination in society, especially racism and sexism. The term is often used by the right to disparage left-leaning views on topics ranging from climate change to supporting 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 this criticism was subsequently criticized by many on the left, including placing two executives accused of the relationship on administrative leave.
AB InBev's U.S.-listed shares fell nearly 4% in after-hours trading in New York.
