Bloomberg — Carlsberg A/S, the largest brewer in Russia, and rival Heineken NV plan to sell their local businesses and exit the country as brewers pull back after the invasion of Ukraine.
The Dutch brewer said Monday it doesn’t expect any profit from the sale. Carlsberg only hours later said it had taken “the difficult and immediate decision” to do the same and leave Russia, where it makes 13% of its revenue. The shares surged as much as 8.3%.
Brewers are the latest industry to abandon Russia, following in the footsteps of oil companies and cigarette makers. Carlsberg had already warned earlier this month that the war was clouding its outlook and withdrew its financial forecast for the year.
The Danish company said it believes selling the business and leaving the country “is the right thing to do in the current environment. We continue to strongly condemn the Russian invasion, which has led to so much loss of life, devastation and human tragedy.”
Carlsberg earlier this month had stopped investing in Russia and carved out the business, called Baltika Breweries, to operate separately from the group.
Heineken, meantime, expects impairment and non-cash related charges of 400 million euros ($438 million) from the sale. The company previously stopped selling its flagship beer brand and halted all investments and exports to Russia, which has a $16 billion beer market.
The company said however that it’s continuing operations in Russia to minimize the risk of nationalization, and it will make sure local employees are paid through the end of the year.
Anheuser-Busch InBev NV, the maker of Budweiser, has pledged to forfeit any profit from operations in Russia, where it has a joint venture with Turkey’s Anadolu Efes.
