Read why Heineken beer sells Russian business for just €1
Heineken has finally sold off its Russian business for €1 – or 86p – about a year and a half after first promising.
The Dutch brewer said it would lose €300m on the company, which is being emptied to Russia’s Arnest, which makes aerosol cans.
Heineken beer and Russian business, what’s going on?
Many Western companies dumped Russian operations when the country attacked Ukraine last February. Heineken’s Dolf van den Brink stated: “It took much longer than we had hoped.”
The chief executive and chairman continued: “[But] this transaction secures the livelihoods of our employees and allows us to exit the country responsibly.”
For €1, Arnest will purchase seven breweries and take on 1,800 employees with guarantees to hire them for the next three years. The manufacture of the Amstel beer trademark will be phased out over six months, joining the Heineken lager, which the firm said was withdrawn in 2022.
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“Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia,” Mr. van den Brink stated. Last month, President Vladimir Putin held Russian assets owned by Carlsberg and French yoghurt maker Danone.
Earlier this week, the franchise proprietor of Domino’s Pizza signalled it would close its Russian stores and bankrupt the business. DP Eurasia said it would no longer attempt to sell the operation because of an “increasingly challenging environment”.
A few economic boycotts have targeted Russia since its tanks rolled into Ukraine on 24 February 2022. Many family names decided to shut their operations immediately after the attack. Others, such as McDonald’s and Coca-Cola, faced pressure to leave Russia.
There has even been constant criticism for the ones that have continued operations.
Yale University’s School of Management has been tracking which companies have gone and which have stayed. Those that remain have UK telecoms company BT Group and Lacoste, the upmarket French sportswear brand.
