Heineken exits Russia, brewer to bear $320 million loss
Dutch brewer Heineken has completed its withdrawal from Russia, selling its operations to the Arnest Group, Russia's largest manufacturer of cosmetics, household goods, and metal packaging. This move ends a process that started in March 2022.
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FollowDutch brewer Heineken on Friday announced its withdrawal from Russia. The company has sold its operations to the Arnest Group, which happens to be the largest Russian manufacturer of cosmetics, household goods, and metal packaging. Heineken, like several other major Western corporations, pledged last year to cease its presence in Russia. However, it faced criticism earlier this year when a Dutch investigative website reported that it was still conducting sales activities in Russia.Â
In March, the company issued an apology for creating "ambiguity" regarding its commitment to exit the country. It explained that it was striving to secure jobs for its Russian employees but encountered difficulties in finding a buyer for its Russian business.
In a statement released on Friday, Heineken announced that the sale had received all the necessary approvals and marked the completion of the process initiated in March 2022 to exit Russia. This move is expected to result in a total cumulative loss of 300 million euros ($320 million).
All remaining assets, including seven breweries in Russia, will now transition to the new owners, as per Heineken's statement. The Arnest Group has provided employment guarantees for the next three years for the 1,800 Heineken employees in Russia.
Furthermore, Heineken mentioned that, in addition to the removal of the Heineken brand from Russia in 2022, production of Amstel would be phased out within six months, and no other international brands would be licensed in Russia.
Dolf van den Brink, Heineken's CEO, stated, "We have now completed our exit from Russia." He acknowledged the challenges faced by large manufacturing companies when exiting Russia and emphasized that this transaction allows them to exit the country responsibly while ensuring the livelihoods of their employees.
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