Carlsberg has been hit by what it describes as an “unexpected” development in Russia, where the brewer is looking to offload its operations.
The group, which held around a third of Russia’s beer market through its Baltika business, confirmed late last month that a buyer had been found for its assets in the country. The move, prompted by Russia’s invasion of Ukraine last year, had proceeded to the signed agreement stage, with governmental approval to be the next step.
Late yesterday, however, Carlsberg said a “presidential decree” had been published, “transferring Baltika Breweries to the temporary management of the Russian Federal Agency for State Property Management”. The transfer, which had not been communicated to Carlsberg formally, overrides the expected sale of Baltika.
“The Carlsberg Group has been operating in accordance with local rules and regulations in Russia and finds this development unexpected,” the company said. “The group will assess the legal and operational consequences of this development and take all necessary actions in response.
“Following the presidential decree, the prospects for this sales process are now highly uncertain.”
Updates on the situation will be announced as and when, with the company set to report its half-year results on 16 August.
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