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Heineken joins Carlsberg withdrawing from Russia: “no longer sustainable”

Beer giants Carlsberg and Heineken are in a fight for companies withdrawing from Russia over an invasion of Ukraine.

In a statement, a Dutch brewery said its business in Russia was “no longer sustainable or feasible in the current environment.”

Heineken beer logo (Reuters)

It calls for “the orderly transfer of our business to new owners, in full compliance with international and national law.”

The company has previously announced that it will stop new investment and exports to Russia and end production, sales and advertising of the brand. It also announced that it would not accept financial or profits from its business in Russia.

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In a statement, Heineken said, “We aim to fully comply with international and national law and to orderly transfer our business to new owners. We will ensure the continued safety and welfare of our employees and nationalize them. We have concluded that we will continue our recently reduced operations during this transition period to minimize our risk. ”

Heineken will continue to pay 1,800 staff in Russia until the end of the year and expects to not benefit from the sale of its Russian business, resulting in a cost of € 400 million ($ 438 million).

Hours after Heineken’s announcement, Danish competitor Carlsberg said it would break up with Russia, one of the major markets in Central and Eastern Europe, alongside Ukraine.

A police station building in the damaged area after a Russian missile attack in Kharkiv, Ukraine on March 2, 2022. (Ukraine / Distribution / Anadolu Agency National Emergency Service by Getty Images)

A Copenhagen-based group said in a statement, “We have made a difficult and immediate decision to seek the complete disposal of our business in Russia. We believe this is right in the current environment.” rice field.

Cees’t Hart, CEO of Danish brewer, said the decision meant that Carlsberg “does not exist in Russia” and that operations in the vast Russian market would no longer be included in Carlsberg’s earnings and operating profit. .. As an asset held for sale until disposal is complete. “

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In 2021, Carlsberg reported revenues in Russia of SEK 6.5 billion ($ 959 million) and operating profit in Russia of SEK 682 million ($ 101 million), respectively. Later in the earnings guidance.

Carlsberg beer

Carlsberg beer displayed on the shelves. (Reuters)

According to Carlsberg, all profits generated during the humanitarian crisis will be donated to relief organizations.

Earlier this month, Carlsberg said it would immediately suspend new investment and exports to Russia, and Hart said the suspension would include exports from other Carlsberg Group companies to Baltika Brewery.

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Carlsberg is one of Russia’s biggest brewing problems and is wholly owned by Baltika Brewery, Russia’s largest exporter of beer. Danish breweries make up about 10% of sales in Russia and have about 8,400 staff fired.

The Associated Press contributed to this report..

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