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Brewer Carlsberg Ends License Agreements In Russia

By Donna Ahern
Brewer Carlsberg Ends License Agreements In Russia

Carlsberg recently said that it has terminated its license agreements in Russia following Moscow's decision earlier this year to take control of the Danish group's breweries in the country.

The Baltika breweries will be able to use existing stock and materials from Carlsberg until 1 April of 2024, the Danish brewer noted.

"It is unclear what formally will be the next steps in relation to Baltika," Carlsberg said in a statement.

"We retain title to the shares in the company while the temporary management is transferred to the Russian state. What the Russian state chooses to do under these circumstances is not clear," the group added.

'Temporary Management'

The Russian state took control of Carlsberg's stake in local brewer Baltika Breweries in mid-July, putting it under 'temporary management' of government property agency Rosimushchestvo.

Carlsberg had eight breweries and about 8,400 employees in Russia, and took a 9.9 billion crown ($1.39 billion) write-down on its Baltika unit in 2022 following Russia's invasion of Ukraine.

In mid-August, Reuters reported that Cees 't Hart, CEO said on a media call, "We have known from the beginning, since announcing the intention to leave Russia in March of last year, that there was huge interest in the business from people inside Russia. But still, this is an unprecedented development."

Profit Guidance

On 17 August, Carlsberg lifted its profit guidance for this year.

Sales in the second quarter rose 4% to 21.4 billion crowns from a year earlier, compared with analysts' average forecast of 21.5 billion in a poll provided by Carlsberg.

Read More: Carlsberg In The Dark Over Russian Business After Shock Seizure

News by Reuters edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.

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