On Friday, Heikenen announced that it had sold all its assets in Russia to the Arnest Group, a local manufacturer, for just one euro. With the deal, the Dutch beer giant fulfilled its promise to cease operations there, but at a cost of around 300 million euros.
Shortly after Russia invaded Ukraine a year and a half ago, Heineken vowed to follow the lead of many other western companies and stop doing business in the aggressor nation. Executives faced criticism for taking so long to complete the process, which they claimed was being drawn out in order to protect local employees.
"The transaction has received all the required approvals and concludes the process HEINEKEN initiated in March 2022 to exit Russia," the company wrote in a statement, adding that it "will provide no brand support and will receive no proceeds, royalties or fees from Russia."
As part of the deal, the Arnest Group will receive all Heineken's assets in Russia, including seven breweries, and be responsible for the 1,800 workers therein, ensuring they remain employed for the next three years.
Heineken-brand beer was removed from store shelves in Russia at the outbreak of the war, however Amstel, which they also produce, was allowed to remain. Under the new deal, Amstel will be phased out over the next six months.
"We have now completed our exit from Russia," CEO Dolf van den Brink said. "Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia. While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner."
The company, which last year declared that selling beer in Russia was "no longer sustainable nor viable in the current environment," stated there was "no call option to return" to the nation.
Shortly after Russia invaded Ukraine a year and a half ago, Heineken vowed to follow the lead of many other western companies and stop doing business in the aggressor nation. Executives faced criticism for taking so long to complete the process, which they claimed was being drawn out in order to protect local employees.
"The transaction has received all the required approvals and concludes the process HEINEKEN initiated in March 2022 to exit Russia," the company wrote in a statement, adding that it "will provide no brand support and will receive no proceeds, royalties or fees from Russia."
As part of the deal, the Arnest Group will receive all Heineken's assets in Russia, including seven breweries, and be responsible for the 1,800 workers therein, ensuring they remain employed for the next three years.
Heineken-brand beer was removed from store shelves in Russia at the outbreak of the war, however Amstel, which they also produce, was allowed to remain. Under the new deal, Amstel will be phased out over the next six months.
"We have now completed our exit from Russia," CEO Dolf van den Brink said. "Recent developments demonstrate the significant challenges faced by large manufacturing companies in exiting Russia. While it took much longer than we had hoped, this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner."
The company, which last year declared that selling beer in Russia was "no longer sustainable nor viable in the current environment," stated there was "no call option to return" to the nation.
