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Wednesday, March 22, 2023

Heineken withdraws from Russia in midst of Ukraine war

Heineken, the Dutch brewer, joined the foreign corporate flight from Russia on Monday, saying it was “very sorry” to watch the dispute escalate. 

Earlier this month, the beer firm, which employs 1,800 people in Russia, froze the sale and manufacture of its Heineken brand, as well as new investments and exports to the nation. 

Hundreds of Western companies have shuttered stores and offices in Russia since the war began, including household brands such as Ikea, Coca-Cola, Goldman Sachs, and McDonald’s. 

“We are startled and extremely saddened to see the situation in Ukraine unfold and worsen,” Heineken stated in a statement.  

“Following the previously disclosed strategic evaluation of our operations,” the statement added, “we have determined that Heineken’s ownership of the company in Russia is no longer sustainable nor profitable in the present context.” 

“As a result, we have made the decision to leave Russia.”  

Heineken stated that it will strive for a “orderly transfer” of its business to a new owner in accordance with international and local rules, and that it will not benefit from the deal, which will cost the firm 400 million euros ($438 million) in extraordinary costs. 

Heineken is Russia’s third-largest brewer, producing the Zhigulevskoe and Oxota brands for the domestic market.  

Heineken suspends beer sales in Russia 

Recall that Heineken NV declared in a statement on Wednesday that it has ceased producing and selling its own brand beer in Russia, following a flood of companies fleeing the nation in response to Ukraine’s invasion.  

The move builds on the Dutch brewer’s prior actions, which included a halt to all new investments in Russia as well as shipments of other brands.

The company stated in a statement that production, promotion, and sales of the Heineken brand will cease immediately. 

The company said it would continue on reduced operations during a transition period to reduce the risk of nationalization and “ensure the ongoing safety and wellbeing of our employees”. 

“In all circumstances we guarantee the salaries of our 1,800 employees will be paid to the end of 2022 and will do our utmost to safeguard their future employment.” 

Guaranteeing salaries  

The company stated that it will continue to operate on a smaller scale during a transition phase to minimize the possibility of nationalization and “guarantee the continuous safety and wellness of our personnel.” 

“In any circumstances, we guarantee that our 1,800 employees’ wages will be paid by the end of 2022, and we will do all possible to ensure their future employment.”  

Chinaza Ogbachalu
Chinaza Ogbachaluhttps://www.chinazaogbachalu.com/
My name is Chinaza Ogbachalu, and I am a writer. I have been writing news and opinion articles for five years plus and have always had a passion for storytelling. I grew up in Nigeria and graduated from the University of Port Harcourt, Nigeria, with a degree in linguistics and communication studies. I have written books that have been well-received by critics and readers alike. My work often focuses on culture and lifestyle, and I draw inspiration from my own experiences and observations of the world around me. As a news writer, I am responsible for researching and writing engaging and accurate news stories for our online audience. I have a strong passion for current events and am skilled at conducting interviews and gathering information from sources. I am grateful for the support of my readers and am constantly humbled by their enthusiasm for my work. Thank you for taking the time to learn more about me and my writing.


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