Brewers Carlsberg and Heineken the latest foreign firms to pull out of Russia

Danish brewery group Carlsberg stated on Monday it’s pulling out of Russia, hours after its competitor, Dutch brewing big Heineken, did the identical, citing Moscow’s ongoing battle in opposition to Ukraine.

In an announcement, the Copenhagen-based group stated it had taken “the tough and instant determination to hunt a full disposal of our enterprise in Russia, which we imagine is the proper factor to do within the present atmosphere.”

Carlsberg totally owns Baltika Breweries, one of many largest brewing considerations in Russia and the largest exporter of Russian beer. The Danish brewer generates about 10 per cent of its gross sales in Russia, w. it has about 8,400 workers who can be laid off.

The Danish brewer’s CEO, Cees ‘t Hart, stated the choice means Carlsberg “can have no presence in Russia” and the enterprise in its huge Russian market will not be included in Carlsberg’s income and working revenue. The enterprise “can be handled as an asset held on the market till completion of the disposal.”

In 2021, Carlsberg reported income in Russia of 6.5 billion kroner ($1.2 billion Cdn) and working revenue in Russia of 682 million kroner ($126 million). The group stated it can present additional particulars on the accounting influence of the deliberate disposal and the reintroduction of earnings steering at a later date.

Any earnings generated in the course of the humanitarian disaster can be donated to reduction organizations, Carlsberg stated.

Enterprise ‘not sustainable’ in Russia

Within the Netherlands, Heineken stated that its enterprise in Russia “is not sustainable nor viable within the present atmosphere. In consequence, we now have determined to go away Russia.”

The corporate stated it’s in search of an “orderly switch of our enterprise to a brand new proprietor in full compliance with worldwide and native legal guidelines.”

Heineken will proceed to pay its 1,800 workers in Russia by way of the tip of the 12 months. The corporate says it is not going to revenue from the sale of its Russian operations and expects to take a 400-million euro cost consequently — about half a billion Canadian {dollars}.

Earlier this month, Carlsberg stated it was instantly stopping new investments and exports to Russia with ‘t Hart saying then that the cease additionally contains exports from different Carlsberg Group firms to Baltika Breweries.

Russia and Ukraine are the 2 most important markets for Carlsberg in central and jap Europe.

Baltika Breweries was established within the Russian metropolis of St. Petersburg in 1990 and is the main exporter of Russian beer, with the corporate’s merchandise supplied in additional than 75 nations, together with western Europe, North America and the Asian Pacific area.

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