Carlsberg has announced it has taken the “difficult and immediate decision” to fully dispose of its business in Russia.
According to Bloomberg, Carlsberg holds a 27.3% share of the $16 billion Russian beer market.
In a recent statement, Carlsberg said: “The war in Ukraine, and the escalating humanitarian and refugee crisis, shocks us all. We continue to strongly condemn the Russian invasion, which has led to so much loss of life, devastation and human tragedy.”
The company added: “Based on this review, we have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment. Upon completion, we will have no presence in Russia.”
In addition to halting new exports and investment in the country, the Danish brewer will also exit its Baltika Breweries subsidiary – the largest brewery in Russia, which employs 8,400 people.
Baltika will no longer be included in Carlsberg’s revenue and operating profit, and the company’s exit will result in a “substantial non-cash impairment charge”.
Carlsberg concluded: “We deeply regret the consequences of this decision for our 8,400 employees in Russia. Until the completion of the process, we will maintain the recently announced reduced level of operations to sustain the livelihoods of these employees and their families. Any profits generated during the humanitarian crisis will be donated to relief organisations.”
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