Heineken, the prominent Dutch brewing company, has finalized its departure from the Russian market by transferring its operations there to the Russian industrial
conglomerate Arnest for a nominal fee of €1. Regrettably, this move resulted in a loss of €300 million for Heineken.
The Russian sector had been home to seven breweries under the Heineken banner, employing around 1,800 individuals. In the wake of the Ukrainian conflict and subsequent invasion, Heineken ceased all distribution of its Heineken brand products within Russia in 2022. The production of Amstel beer will now undergo a gradual wind-down process, as indicated in the company's statement released on Friday.
With the exception of a three-year license granted for certain smaller regional brands essential for business continuity and regulatory approval, Heineken clarified that no other international brands will receive licensing in Russia.
Furthermore, Heineken will not provide any form of brand support and will not accrue any proceeds, royalties, or fees from its Russian operations.
The challenges associated with disengaging from the Russian market have become evident in recent developments, underscoring the difficulties faced by major manufacturing firms. Dolf van den Brink, the CEO, remarked, "Although the timeline extended beyond our initial expectations, this transaction safeguards the well-being of our employees and enables us to depart from the nation in a responsible manner."
In a March revelation by investigative platform Follow the Money, it was disclosed that the introduction of 61 new products in Russia during the previous year, including fresh variants of Amstel, had received endorsement from Heineken's head office in Amsterdam.
Initially, Heineken asserted that Heineken Russia functioned as an entirely autonomous entity, dismissing the reports as "utterly false and misleading" in a press release. However, a subsequent statement admitted the central headquarters had indeed sanctioned the plan, deeming it "necessary to avert dissolution."
Heineken also conceded that the process of disentangling its Russian operations had not yet been initiated, despite asserting the prior year that the scaling-down process had commenced. Photo by Andybryant at English Wikipedia.