Anheuser-Busch, the parent company of Bud Light, is implementing a share buyback clause for the first time in the company’s history, which will hand its shareholders $1 billion in a desperate attempt to restore confidence in the brand.
The buyback will take place over the next 12 months and begin “immediately,” according to the company’s CFO Fernando Tennenbaum, who announced the decision on a call with investors.
The move follows a financially poor third quarter for the company. Anheuser-Busch reported a collapse in U.S. revenue by 13 percent as well as drops in sales to wholesalers by 17.6 percent and to retailers by 16.6 percent. Beer volumes similarly dropped by four percent.
The company has made numerous revamp attempts following its decision to promote Bud Light using transgender woman Dylan Mulvaney earlier this year – a stunt that cost the brand upwards of $27 billion. The latest attempt came in October after it announced a partnership with UFC.
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