AB InBev, the parent company of Bud Light, has sold off one of its beer brands over mounting financial losses
The downward trend follows the company's partnership with trans activist Dylan Mulvaney
The decision prompted backlash from conservative customers and lawmakers
Bud Light's parent company, AB InBev, has chosen to sell off one of its beer brands back to its original founders amid the company's financial losses, which have so far racked up in the billions, following its partnership with trans activist Dylan Mulvaney.
The decision to pair up with Mulvaney has cost the company billions of dollars in value in just the last two months as conservative customers and lawmakers criticize the partnership. The latest development has AB InBev reportedly offloading a brand that it purchased as part of a portfolio of craft beers in 2020.
Bud Light Parent Company Sells of Beer Brand
This week, the co-founders of North Carolina's Appalachian Mountain Brewery and Cidery in Boone bought back their company, AMB, from AB InBev. The cousins Nathan Kelischek and Chris Zieber founded the brewery back in 2011, as per The Western Journal.
AMB was then sold off to the Portland, Oregon-based Craft Brew Alliance in 2018, with which AB InBev had a stake. The latter later acquired the remainder of the company for a price of $220 million in 2020. But as of this week, AMB has returned to the ownership of its original founders.
The announcement of the acquisition was made by Kelischek and Zieber in a joint statement that was posted on the AMB website. The cousins said that they were grateful for the last two years that they spent as active founders within A-B's craft portfolio and wanted to express their gratitude to the people who work at A-B.
The original AMB founders added that they will now shift their focus into quickly growing their local team, opening a new taproom in Mills River, North Carolina, and continuing their investment in achieving sustainability and philanthropy efforts to make a significant difference in their communities.
The duo added that everything is based on the production of the highest quality products as well as the delivery of a unique experience for their customers. In a statement, AMB said that under its original leadership, the brand will continue to brew beers and ciders that focus on "laidback Southern hospitality."
Massive Drop in Value
The company's market capitalization also fell to $107.44 billion through the end of May but saw a silver lining of experiencing an uptick on June 1. Bud Light sales have also dropped 25.7% for the week that ended on May 20 when compared to numbers from a year ago, said the Daily Mail.
Reports have shown that as of Wednesday, AB InBev's partnership with Mulvaney has cost the company roughly $27 billion in market value. The global beer conglomerate's share price has dropped nearly 20% since April, which was when the company's partnership with the trans activist was announced.
The controversy began after Bud Light sent personalized beer cans to Mulvaney who proceeded to post them on her social media platform. The situation caused a backlash that resulted in sales of the product dropping to unprecedented levels, according to the New York Post.
