Dutch brewer Heineken said on Monday it would withdraw from the Russian market following an overhaul of its operations triggered by the invasion of Ukraine.
“We have concluded that ownership of the Heineken business in Russia is no longer sustainable or viable in the current environment. As a result, we have decided to leave Russia,” the company said in a statement.
Heineken had already stopped new investment and exports to Russia and had stopped the sale, production and advertising of its Heineken-branded beer in the country.
“We are shocked and deeply saddened to see the war in Ukraine continue to unfold and intensify,” the company added.
The brewery Moretti e Amstel said it intends to transfer the business to a new owner, respecting 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 to continue with recently reduced operations during this transition period,” he added.
The brewery said it will pay salaries to its 1,800 employees in Russia until the end of 2022 and “will do its best to protect their future jobs”.
Heineken expects losses of 400 million euros ($439 million) from the move.
“Upon completion of the transfer, Heineken will no longer have a presence in Russia,” the company said.
The company said in February that its Russian beer volumes grew by a few percentage points in 2021, driven by stronger demand for premium brands Heineken, Miller and Dr Diesel. It also reported growth for its market-leading cider business in Russia.
Dozens of companies in all sectors of the economy have abandoned Russia or frozen their operations since the February 24 invasion.
Rival brewer AB InBev (BUD), maker of Budweiser and other brands, said it had “applied to the controlling shareholder” of its Russian operations to suspend the license to produce and sell Bud in the country. The company is also “losing all financial benefits” from its joint venture operations.
Employees will still be paid.
Rival Carlsberg also leaves
Carlsberg also warned on Monday that it will exit the Russian market and assume “substantial” non-financial loss, the Danish brewer said. amid mounting pressure on Russia following the invasion of Ukraine.
Source: CNN Brasil
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