The largest brewer in the world withdraws from Russia. It sells its shares to Turkey’s Anadolu Efes.
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The Leuven brewer plans to sell its share in the Russian AB InBev Efes joint venture. The intention is to sell the 24 percent stake to Turkish beer producer Anadolu Efes, which already owns the majority of the Russian company.
With the decision, AB InBev is responding to the massive withdrawal of Western companies from Russia. After the invasion of Ukraine and subsequent sanctions by the West, many companies have voluntarily joined efforts to drain the Russian economy. McDonald’s has closed all its restaurants and Renault divested its stake in Lada producer Avtovaz. AB InBev remained discreet about its plans in Russia for a long time, but has now taken the plunge. However, the brewer had already decided to waive all financial benefits from the Russian activities.
The decision is not without financial consequences. In a statement, the brewer says it will book a capital loss of 1.1 billion dollars (1 billion euros). That will weigh on the results in the first quarter. The investments in Russia are removed from the balance sheet. The company will not disclose the expected proceeds of the sale to Anadolu Efes. But a favorable price seems out of the question, given the circumstances. The Russian economy has been hit hard. In addition, the revocation of Bud’s brewing license will remain in effect. This successful American beer brand will therefore not be able to sell Anadolu Efes on the Russian market in the future, which will weigh on the sales price.
According to the 2021 annual report, the Russian subsidiary had eliminated losses in Russia last year. It made a small profit of $1 million that year on sales of $1.4 billion.
Ukrainian workers get support
AB InBev Efes has activities not only in Russia, but also in Ukraine. The Ukrainian employees can continue to count on the support of the Leuven brewer, the company assures. Support is provided for displaced workers and their families. It concerns financial support, housing and moral assistance. There is also cooperation with NGOs and the aid organization Caritas International.
• Farewell to Russia will cost companies many billions
The profit from the sale of Chernigivske, the most popular beer brand in Ukraine, will go to humanitarian actions. It concerns at least 5 million dollars (4.6 million euros). Chernigivske is also for sale in Belgium and several other countries in Europe and Latin America.
AB InBev Efes includes eleven breweries and three malthouses in Russia, and three breweries in Ukraine. The latter are located in Chernihiv, Kharkov and Nikolayev.
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