Carlsberg’s long-running attempt to extract itself from the Russian market appears to be finally reaching a conclusion.
Baltika Breweries, which accounted for around a third of all beer sales in the country, will be withdrawn from its temporary state-ownership status and removed from Carlsberg’s roster “within the next couple of days”. The multinational’s previously-majority holding in the Baltika brand owner will be purchased for an unspecified sum by a company “owned equally by two longstanding Baltika employees, currently holding leading positions in the company”.
The news comes almost 18 months after Carlsberg had secured an unnamed purchaser for its shareholding, an arrangement that was undone less than a month later by an “unexpected” presidential decree regarding Baltika Breweries. This week’s exit will also see Carlsberg Azerbaijan and Carlsberg Kazakhstan come under the group’s full control.
Peers Anheuser-Busch InBev and Heineken have already completed the offloads of their Russian assets, although the former also underwent a protracted process, with JV partner Anadolu Efes. Heineken, meanwhile, received a token EUR1 payment for its business.
“Since the announcement of our intention to leave Russia in 2022, we have exhausted all options to find a way to achieve a full exit from Russia while protecting our employees, our assets and the value of the Carlsberg business,” said CEO Jacob Aarup-Andersen. “With today’s announcement, we will settle numerous lawsuits and IP rights issues related to Baltika Breweries.
“Considering the circumstances, we believe it is the best achievable outcome for our employees, shareholders and the continued business.”
Carlsberg’s ‘Central & Eastern Europe and India’ reporting region – which does not include Baltika – was the group’s strongest in results for the three months to the end of September, delivering a near-10% rise in year-on-year sales.
