Heineken NV plans to sell its business in Russia and exit the country as the brewing industry pulls back after the invasion of Ukraine.
The Dutch brewer said it doesn’t expect any profit from the sale, and it expects impairment and non-cash related charges of 400 million euros ($438 million). The stock fell as much as 2.2%.
Brewers are the latest industry to abandon Russia, following in the footsteps of oil companies and cigarette makers. Carlsberg A/S, the largest brewer in Russia, is reviewing a full range of strategic options for its Baltika Breweries unit because the government might seize the assets.
Heineken previously stopped selling its flagship beer brand in Russia and halted all investments and exports to the country, which has a $16 billion beer market. The company said however that it’s continuing operations in Russia to minimize the risk of nationalization, and it will make sure local employees are paid through the end of the year.
Carlsberg may face more pressure to exit after Heineken’s move, though it has a larger business, said Mads Rosendal, an analyst at Danske Bank.
Anheuser-Busch InBev NV, the maker of Budweiser, has said pledged to forfeit any profit from operations in Russia, where it has a joint venture with Turkey’s Anadolu Efes.
