Ready to ‘beer’ loss, Heineken and Carlsberg announce exit from Russia

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<strong>Danish brewer Carlsberg and its Dutch rival brand Heineken have decided to end their presence in Russia over the ongoing conflict in Ukraine.</strong></p>
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Heineken had earlier said that it was "shocked and deeply saddened to watch the war in Ukraine continue to unfold" and had stopped new investments and exports to Russia besides ending the production, sale and advertising of the brand.<br />
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"Following the previously announced strategic review of our operations, we have concluded that Heineken's ownership of the business in Russia is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia," the company said in a statement Monday.</p>
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The Dutch brewing company, which has around 1800 employees in the country, said it expected an impairment and other non-cash exceptional charges of approximately €0.4 billion in total.</p>
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The Carlsberg group, which had announced a strategic review of its presence in Russia on March 9, also announced an "immediate decision" to seek a full disposal of its business in the country, saying it is the "right thing to do" in the current environment.<br />
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The company said that the business in Russia reported revenue and operating profit of DKK 6.5bn and DKK 682m, last year.<br />
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"We deeply regret the consequences of this decision for our 8,400 employees in Russia. Until the completion of the process, we will maintain the recently announced reduced level of operations to sustain the livelihoods of these employees and their families. Any profits generated during the humanitarian crisis will be donated to relief organisations," said Cees Hart, the CEO of Carlsberg Group.<br />
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"The war in Ukraine, and the escalating humanitarian and refugee crisis, shocks us all. We continue to strongly condemn the Russian invasion, which has led to so much loss of life, devastation and human tragedy," the statement added.</p>
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