After nearly a year and a half since its initial commitment, Heineken has eventually divested its Russian beer business for a nominal sum of €1, or 86p. The Dutch brewing company has incurred a substantial loss of €300 million in the process. The Russian division has been sold to Arnest, a Russian aerosol can manufacturer.
Heineken’s decision to sell off Russian beer business aligns with the trend of Western companies shedding their Russian operations in response to Russia’s invasion of Ukraine in February of the preceding year. Dolf van den Brink, Heineken’s CEO and Chairman, acknowledged the extended duration of the process, stating, “It took much longer than we had hoped.” Nonetheless, he emphasized that the transaction ensures the well-being of the company’s employees and facilitates a responsible exit from the country.
For a mere €1, Arnest will acquire seven breweries and commit to retaining 1,800 employees for the next three years. However, they will phase out the production of the Amstel beer brand over six months, mirroring the discontinuation of Heineken lager in 2022.
Challenges faced by large manufacturing companies
Van den Brink noted the challenges faced by large manufacturing companies in departing from Russia due to recent developments. Last month, Russian President Vladimir Putin seized assets owned by Carlsberg and Danone, a French yogurt-maker. Domino’s Pizza franchise owner DP Eurasia also indicated that it would close its Russian shops and place the business into bankruptcy, attributing the decision to an increasingly challenging environment.
The aftermath of Russia’s invasion of Ukraine in February 2022 prompted various well-known entities to shutter their operations in Russia. Others, including McDonald’s and Coca-Cola, faced pressure to exit the country. Those that have chosen to remain, such as UK telecoms firm BT Group and the high-end French sportswear brand Lacoste, have encountered ongoing criticism. Yale University’s School of Management has been monitoring the decisions of firms in this context.
