AB-InBev to exit Russia and take a USD 1.1 billion charge

Belgium | AB-InBev plans to exit Russia by selling its interest in the joint venture with Turkish brewer Anadolu Efes that operates in Russia and Ukraine and will report a USD 1.1 billion non-cash impairment charge for the first quarter as a result.

Heineken delivers better-than-expected sales as Europe reopens

Netherlands | Heineken, the world’s number two brewer, delivered first-quarter beer sales ahead of expectations as people returned to pubs, bars and restaurants across Europe. Beer volumes rose 5.2 percent on an organic basis over the same period last year.

Russia | That was quick: Only days after Carlsberg said it was leaving Russia for good and sell its Russian unit Baltika (28 March 2022), in response to Russia’s invasion of Ukraine, the Danish brewer allegedly received two offers.

Russia | Although Russia’s hops imports have not yet been affected by Western sanctions, Moscow is becoming increasingly isolated from international trade. This must be the reason why Russian brewers fear they could be cut off from hops supplies.

United Kingdom | The UK pub group JD Wetherspoon reported that trading at its 859 pubs has almost returned to pre-covid levels. Tim Martin, the group’s Chairman, said on 18 March 2022: “Following a traumatic two years for many businesses and people, the ending of covid restrictions has brought a return to more normal trading patterns in recent weeks.”

Switzerland | Democracy rules. Because of its statutes, the Swiss supermarket chain Migros, which is the country’s largest and its major employer (100000 people), has asked its members to take a vote by 4 June 2022 whether Migros’ 600 supermarkets as well as its restaurants should be selling alcohol or not.

Norway | Who knew that fears of intra-Nordic domination run so strong? One of Norway’s largest breweries, Aass Bryggeri, resigned from the country’s Brewery and Beverage Association on 22 March 2022, implying that Danish domination of the association will run counter to Norwegian brewers’ interests.

Europe | Brewers Carlsberg and Heineken said on 28 March 2022 they will quit Russia, joining a steady exodus of Western companies. For Carlsberg, the Western brewer most exposed to Russia, the exit will be financially painful. It will result in a “substantial non-cash impairment charge” this year, Carlsberg said without providing further details.

Ukraine | Shortly after Russia’s invasion on 24 February 2022, the Ukrainian craft brewer Pravda, which is based in the western Ukrainian city of Lviv, released the recipes for five of its best-selling beers, encouraging other breweries to use them to raise money for its cause.

United Kingdom | James Watt, the co-founder and CEO of BrewDog, says a criminal prosecution is under way for fraud and malicious communication over an alleged campaign of online harassment directed against him.