The two brassicultural groups announce their disengagement from the country after two decades of presence on Russian territory.
by
A few hours apart, Carlsberg and Heineken made their verdict on their implantation in Russia. The two brewers, indeed, announced, Monday, March 28, that they were ready to withdraw and sell the assets they have in that country.
Heineken spacked the first. The Dutch group unveiled its intention to leave Russia. In early March, he had already made the decision to no longer produce and market his Heineken flagship brand in this country, to stop any promotional operation and to no longer earn profit on site. This time, the idea is to transfer the ownership of the brewer assets to a new shareholder. However, while waiting for this assignment, and to avoid any risk of nationalization, the subsidiary continues its activity. Heineken also undertakes that its 1800 employees would be paid until the end 2022.
Rise of taxes
The Dutch had entered the Russian market in 2002 by buying a first brewery in St. Petersburg. It now has seven over the entire territory, where it markets international brands like Heineken or Amstel but also local brands like Okhota, Sedoy Ural or Amur Pivo. The group, which gives no precision on its business volume, believes that its withdrawal from Russia will result in its accounts by a loss of 400 million euros.
Carlsberg had advanced his rival, since he took his first steps in the Russian market in 2000. In 2008, he became a majority shareholder of Baltika Breweries, created in 1990 in Saint Petersburg. Four years later, Danes became the sole owner. Since the course of this subsidiary has not been rest. Like all its competitors, he found himself faced with the hardening of the regulations, upwards taxes, the devaluation of the ruble and the price war. He was even forced to close two factories in 2015.
Following the invasion of Ukraine, Carlsberg had explained on March 9 that he launched a strategic review to assess his position in Russia. His conclusion has therefore fallen. “We have made the difficult and immediate decision to completely assign our business in Russia,” said the group in a statement. The Dane, which has 8 factories and employs 8,400 employees in Russia, estimates the turnover of its subsidiary at 870 million euros and its operational profit at 90 million euros. The brewer, who did not encrypted the amount of the accounting loss related to this withdrawal, also undertakes to continue the activity as long as the assignment will not be effective.
You still have 7.94% of this article to read. The rest is reserved for subscribers.