Heineken and Carlsberg to exit Russia
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Heineken NV and Carlsberg A/S, the world’s second- and third-largest global brewers, respectively, both made statements on Monday saying they would exit Russia in the wake of the invasion of Ukraine.
According to a report on Marketwatch.com, Heineken and Carlsberg had both previously halted new investments in Russia, and scaled back some operations, while continuing to do business there. They have now reviewed their operations and have decided to dispose of their assets in the country.
Carlsberg, generates about 10% of its annual revenue and more than 6% of its operating profit from Russia, where it owns eight breweries and has around 8,400 employees.
Carlsberg chief executive, Cees ‘t Hart, said: We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment.”
It said any profit generated from its Russian business during the war would be donated to relief organisations.
Heineken said that it had decided to leave Russia after a review had concluded that ownership of its business there was “no longer sustainable nor viable in the current environment.”
Heineken said it would continue to pay its 1,800 staff in Russia until the end of the year and that it wouldn’t profit from any transfer of ownership of its operations there. It added that the move would result in a one-off EUR400 million charge.
