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Beer giants Carlsberg and Heineken join the fight of companies pulling out of Russia over Ukraine invasion.
In a statement, the Dutch brewery said its business in Russia “is no longer sustainable or viable in the current environment”.
Heineken beer logo
It seeks an “orderly transfer of our business to a new owner in full compliance with international and local laws.”
The company previously announced that it would halt new investments and exports to Russia, and cease production, sales and promotion of its brand. She also announced that she would not accept any financial benefits or profits from her business dealings in Russia.
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“We are seeking an orderly transfer of our business to a new owner in full compliance with international and local laws,” Heineken said in a statement. “To ensure the continued safety and well-being of our employees and to minimize the risk of nationalization, we have concluded that we will continue recently reduced operations during this transition period.”
Heineken will continue to pay its 1,800 employees in Russia until the end of the year. The company says it will not benefit from the sale of its Russian operations and expects to pay a fee of 400 million euros ($438 million) for doing so.
Hours after Heineken’s announcement, its Danish competitor Carlsberg said it was also divesting itself of Russia, which is one of its main markets in Central and Eastern Europe along with Ukraine.
A view of the damaged regional police station building after a Russian missile attack in Kharkiv, Ukraine on March 2, 2022. (Photo by State Emergency Service of Ukraine/Handout/Anadolu Agency via Getty Images) (State Emergency Service of Ukraine/Handout/Anadolu Agency via (Getty Images)
In a statement, the Copenhagen-based group said it had “taken the difficult and immediate decision to seek a full divestment of our business in Russia, which we believe is the right thing to do in the current environment.”
The Danish brewery’s CEO, Cees ‘t Hart, said the decision means that Carlsberg “will not have a presence in Russia” and that business in its huge Russian market will no longer be included in Carlsberg’s sales and operating profit. The company “will be treated as an asset held for sale until the sale is completed.”
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In 2021, Carlsberg reported sales of 6.5 billion kronor (US$959 million) in Russia and operating profit in Russia of 682 million kronor (US$101 million). The group said it would later provide more details on the accounting impact of the proposed divestment and the reinstatement of the earnings guidance.
Carlsberg beer displayed on a shelf.
All profits made during the humanitarian crisis will be donated to charities, Carlsberg said.
Earlier this month, Carlsberg said it was immediately halting new investment and exports to Russia, with ‘t Hart saying the halt also includes exports from other Carlsberg Group companies to Baltika Breweries.
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Carlsberg is a full owner of Baltika Breweries, one of the largest brewing groups in Russia and the largest exporter of Russian beer. The Danish brewery makes about 10% of its sales in Russia, where it has about 8,400 employees who will be made redundant.
The Associated Press contributed to this report.