Heineken And Carlsberg To Exit From Russia

(RTTNews) - Beer giants Heineken and Carlsberg on Monday announced their decision to leave the Russian market due to Moscow's invasion of Ukraine.

Heineken had already halted new investments and exports to Russia and had ended the production, sale and advertising of its Heineken brand in the country.

"We earlier announced that HEINEKEN stopped new investments and exports to Russia, ended the production, sale and advertising of the Heineken brand, and announced that we will not accept any net financial benefits or profit from our business in Russia," the company announced in a statement.

"Following the previously announced strategic review of our operations, we have concluded that HEINEKEN's ownership of the business in Russia is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia."

The company said it plans to transfer of its business to a new owner in full compliance with international and local laws.

"In all circumstances we guarantee the salaries of our 1,800 employees will be paid to the end of 2022 and will do our utmost to safeguard their future employment," the company added.

The company said it will not profit from any transfer of ownership and expect an impairment and other non-cash exceptional charges of approximately €0.4 billion in total.

Carlsberg Group also announced its decision to seek a full disposal of business in Russia.

"As a result of this decision, our business in Russia will no longer be included in the Group's revenue and operating profit. From an accounting perspective, the business will be treated as an asset held for sale until completion of the disposal."

In 2021, the business in Russia reported revenue and operating profit of DKK 6.5 billion and DKK 682 million respectively.

The company said that until the completion of the process, it will maintain reduced level of operations to sustain the livelihoods of its employees and their families. Any profits generated during the humanitarian crisis will be donated to relief organizations.