Heineken beer bottles are stocked at a store in Washington, USA. AP Yonhap News
Reuters and other foreign media reported on the 25th that Heineken of the Netherlands, which has the second largest share in the global beer industry, sold its entire business in Russia to a Russian company for just one euro (approximately 1,430 won). It is estimated that the cumulative loss Heineken will suffer from this sale will reach about 300 million euros (about 429 billion won).
Heineken posted a statement on its homepage on the same day, saying that the process of selling a 100% stake in the Russian business to the local cosmetics and household goods manufacturing and packaging company The Nest Group was completed. The company added that it is partially continuing to sell some brand products such as Amstel to maintain local business, but has already withdrawn many of them. Local production of Amstel Beer will also be phased out over the next six months.
After the Russian invasion of Ukraine, Heineken announced its intention to withdraw from Russia in March of last year, and then completely withdrew in about a year and five months. Regarding the sale of all business divisions for 1 euro, it is interpreted as a direct demonstration of the company’s urgency to close its Russian business as soon as possible. Japanese automaker Nissan also sold its assets in Russia, including its automobile manufacturing plant, to a Russian state-owned company for 1 euro last October.
Russia responded to Western companies’ withdrawal by seizing some assets. Last month, Russia also took control of the Russian operations of French dairy company Dannon and Danish brewer Carlsberg by putting them under temporary management by the Federal State Property Administration.
Heineken CEO Dolph van denbrink said: “While it has taken much longer than we had hoped, this transaction will allow us to keep our employees’ livelihoods and leave Russia in a more responsible way.” Regarding the long evacuation, he said, the priority was to protect local staff and avoid the risk of Russian nationalization of assets. Heineken has maintained its position that it is looking for an acquirer who meets the conditions, including guarantees of employment for locally hired employees.
2023-08-25 12:46:29
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