Heineken and Carlsberg to leave Russia

Denmark’s Carlsberg, which has 8,400 employees in Russia, said it was looking to “process the whole” of its business but would keep it running at a reduced rate “to maintain the livelihoods of those employees. this and their families” until the sale is complete.

“The war in Ukraine, and the escalating humanitarian and refugee crisis, shocks all of us. We continue to strongly condemn the Russian invasion, which has resulted in so many human casualties. and of,” said Cees ‘t Hart, CEO of Carlsberg in a statement.

Carlsberg’s Russia business reported revenue and operating profit of 6.5 billion Danish krone ($958 million) and 682 million ($100 million) respectively in 2021, the group said. on Monday that the processing would result in a “significant” loss fee.

Heineken (STRONG) halted new investments and exports to Russia, and stopped selling, manufacturing and advertising its Heineken brand beer in the country.

“We are shocked and deeply saddened to see the war in Ukraine continue and become increasingly fierce,” the Dutch brewer said in a statement.

Moretti and Amstel’s brewer said it was aiming to transfer the business to a new owner, while complying with Russian and international laws.

“To ensure the continued safety and well-being of our employees and to minimize the risk of nationalization, we have concluded that it is essential that we continue with the activities that have recently decreased in the this transition period,” it added.

The brewer said it will pay the salaries of its 1,800 employees in Russia until the end of 2022 and “will do its best to protect their future jobs.”

Heineken is expected to rake in 400 million euros ($439 million) from the move.

“After the completion of the transfer, Heineken will no longer have a presence in Russia,” the company said.

Heineken reported in February that its Russian beer production was up several percentage points in 2021, driven by stronger demand for its premium brands Heineken, Miller and Dr Diesel. It also reported growth for the market-leading cider business in Russia.

Dozens of companies across all sectors of the economy have abandoned Russia or frozen their operations there since the February 24 invasion.

Rival brewers AB InBev (BUD), the maker of Budweiser and other brands, said it “ask a shareholder controlling” its operations in Russia to suspend its license to manufacture and sell Bud in the country. The company also “lost all financial benefits” from its joint ventures. Employees will still be paid.

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