AB InBev will sell its stake in the Russian joint venture AB InBev Efes. Beer giant Leuven is in “active discussions” with cooperating partner Anadolu Efes, a majority-owned Turkish brewer. The decision will cost the company $1.1 billion. AB InBev is another large company withdrawing from Russia after the Russian invasion of Ukraine.
The Belgian-Brazilian beer giant is not stopping at withdrawing from the joint venture. The discontinuation of the sale of the US brand Bud was already announced last month and that should also be entrenched in the deal. AB InBev’s request to suspend the license to manufacture and sell Bud in Russia would be part of a potential deal.
With the exit, the company is following the example of some peers who have ceased activities in Russia. Carlsberg announced a $1.4 billion writedown on Thursday over plans to leave Russia. Heineken also announced that it would sell its Russian activities.
AB InBev will report a $1.1 billion impairment in the first quarter. The company had already announced that it would waive all financial benefits from the joint venture activities.
The beer manufacturer says it has launched the Ukrainian beer brand Chernigivske in several countries, including Belgium, the United Kingdom, Germany, France, the Netherlands, Denmark, Austria, Poland, Italy, Colombia and Brazil. More countries not yet tracked. All profits from the sale of Chernigivske will go to humanitarian work and the brewer is guaranteed an amount of at least $5 million.
The Belgian-Brazilian beer giant is not stopping at withdrawing from the joint venture. The discontinuation of the sale of the US brand Bud was already announced last month and that should also be entrenched in the deal. AB InBev’s request to suspend the license to manufacture and sell Bud in Russia would be part of a potential deal. With the exit, the company is following the example of some peers who have ceased activities in Russia. Carlsberg announced a $1.4 billion writedown on Thursday over plans to leave Russia. Heineken also announced that it would sell its Russian business, and AB InBev would write down $1.1 billion in the first quarter. The company had already announced that it would waive all financial benefits from the joint venture activities. The beer manufacturer says it has launched the Ukrainian beer brand Chernigivske in several countries, including Belgium, the United Kingdom, Germany, France, the Netherlands, Denmark, Austria, Poland, Italy, Colombia and Brazil. More countries not yet tracked. All profits from the sale of Chernigivske will go to humanitarian work and the brewer is guaranteed an amount of at least $5 million.
