Pernod Ricard has moved to quell consumer concerns around the presence of some of its “international brands” in Russia, confirming the halting of all exports to the country.
The group has come under fire in recent weeks following news it had recommenced shipments to Russia having ceased when the country’s armed forces invaded Ukraine in February last year. In April, Pernod Ricard stopped exporting vodka flagship Absolut after the resumption had sparked controversy in the brand’s home market of Sweden.
Meanwhile, reports out of Ireland at the end of last month put the value of Jameson Irish whiskey exports to Russia “over the past six months” at EUR15.6m [US$16.9m]. Protests in the country hit the headquarters of Pernod Ricard’s Irish Distillers division in Dublin.
A statement posted by the brand owner on Friday confirmed the move. with distribution in Russia also set to be stopped. “We are assessing how to adapt our local organisation in light of these decisions, while fully complying with all local legal regulations,” the group said.
“Our guiding principle has been the welfare of our teams wherever they are based, and we will continue to support our local employees during this process.”
Since the war began, international companies have had to navigate law changes in Russia that could impact their employees in the country. “The Russian government has taken the position that the mass, apparently coordinated exodus of Western companies from Russia has led to a deliberately induced reduction in production volumes, a decrease in tax deductions and an increase in unemployment,” Russia Briefing reported in March last year.
“Any total exit of companies from Russia will be considered as deliberate bankruptcy. The management of these companies will be taken over by law enforcement agencies and the enterprises themselves will be subjected to bankruptcy. Their assets and business will be sold to other companies or to the state at auction.”
