Danish-based Carlsberg has a 27% share of the market through its ownership of Baltika, the country’s largest brewer. Carlsberg said it will book a “substantial non-cash impairment charge.” Last year, Russia accounted for 10% of Carlsberg’s total revenue and 6% of its operating profit.
“We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment,” Carlsberg said. “Upon completion we will have no presence in Russia.”
For Heineken, with only 2% of its sales in Russia, the decision to exit was less painful. It said it will seek an “orderly transfer” of its business, while reducing operations in an effort to avoid nationalization.
“We have concluded that Heineken’s ownership of the business in Russia is no longer sustainable nor viable,” the company said in a statement, adding that it would not profit from any transfer of ownership.