Heineken said on Friday it had completed its exit from Russia, over a year after first announcing its plans to leave following Moscow’s invasion of Ukraine.
The Dutch brewing giant said it had sold all its Russian operations to manufacturer Arnest Group for €1, in an exit that is expected to cost the company €300 million. All assets — including its seven breweries in Russia — will be transferred to the Russian packaging group, which has committed to guarantee work for Heineken’s 1,800 employees in Russia for three years.
“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia,” CEO Dolf van den Brink said. “While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner.”
Heineken first announced its plans to leave Russia in March 2022, alongside many other companies and businesses that pulled out of the country following President Vladimir Putin’s full-scale invasion of Ukraine.
The company faced criticism for taking longer than expected in carrying out its promise to leave Russia, a delay the company blamed on “developments” which made securing exit approvals challenging. At the same time, other major foreign investors that stayed in Russia, like Danone and Carlsberg, have had their Russian assets seized.
Heineken also said it plans to phase out the production of its Amstel brand in Russia within six months. The deal included a three-year license for smaller regional brands, which are “required to ensure business continuity and secure transaction approval,” but Heineken said it will provide no brand support and receive no proceeds, royalties or fees from Russia.
Heineken completes exit from Russia
Source: Viral Showbiz Pinay
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