The Dutch brewing company Heineken has announced the sale of its operations in Russia for the symbolic price of one euro. The assets have been acquired by Russian conglomerate Arnest, which owns a major canning company and is the largest manufacturer of cosmetics, housewares and metal packaging for the consumer goods sector in that country.
The transaction has caused a loss for the Dutch group of 300 million euros, as reported by Heineken this Friday. The Arnest group now owns the 7 plants that the European company had in the country.
In addition, as part of the agreement, Arnest assumes a debt of 100 million euros and has committed to keep the jobs of Heineken’s 1,800 employees in Russia for the next three years.
The exit is final and the agreement does not include an asset recovery option, as has been signed by other multinationals that have left the country since the invasion of Ukraine began in February 2022. Heineken expects this transaction to have a minimal impact on earnings per share and no changes to the group’s financial outlook are anticipated for 2023.
Dolph van den Brink, Chairman of the Board of Directors of the Dutch company, stressed that this sale marks the conclusion of the company’s withdrawal from Russia. “Although this transaction has taken longer than expected to process, it has saved the jobs of our workers and allowed us to leave the country responsibly,” he said in a statement. The company was criticized in March for launching new products in Russia.
The company reported that, in addition to the Heineken brand, the production of beer under the Amstel brand will be discontinued in Russia in six months. Heineken’s portfolio encompasses around 30 beer brands, including Zlaty Bazant, Guinness, Krusovice, Affligem, Gosser, as well as local ones such as “Hunting”, “Three Bears”, “Stepan Razin” and ” Okskoe”.
Arnest is the leading manufacturer of aerosol products for perfumery, cosmetics and household in Russia and the CIS. It accounts for more than 53% of aerosol production in Russia. The company’s headquarters are in Nevinnomyssk, in the Stavropol Territory. Arnest manufactures products in collaboration with international brands such as Unilever, Beiersdorf, Colgate-Palmolive, L’Oreal, Coty and Oriflame, and also owns the Prelest, Symphony, Dividik, Garden and Mosquitol brands.
Last year, Arnest acquired three aluminum can plants in the Chelyabinsk region from US company Ball Corporation, the world’s largest maker of cans for Coca-Cola and other beverage companies such as Heineken. Two months later, Arnest’s top managers were awarded the second degree “For Merit to the Fatherland” medal, Kommersant reported.
In March 2022, Heineken announced its decision to cease investments and exports to Russia. In that same month, he also reported the transfer of the business to a new owner. Although Heineken was initially promised to complete its withdrawal from Russia in the first half of 2023, the sale was delayed due to changes in Russian law. The beer group was harshly criticized for launching new products in the country once the war started and despite its public position that it would lower the blind.
