Carlsberg Terminates Business in Russia Following Kremlin's Forceful Takeover

Denmark's brewing giant Carlsberg exits Russia following forced government seizure of its subsidiary, Baltika Breweries; Carlsberg CEO condems action as stealing and refuses to validate the takeover with a deal.

Carlsberg has completely severed its business ties with Russia after the Russian government took over its subsidiary, Baltika Breweries, without Carlsberg's consent. The brewing company had been in the process of selling Baltika before the Kremlin stepped in and effectively stole the business.
Baltika Breweries, which was controlled by Carlsberg, is responsible for some of the most recognized beer brands in Russia. The company had signed a deal in June 2023 to sell Baltika, but the transaction had not been finalized when the Russian government took over the firm in July 2023.
Since the seizure, Carlsberg has refused to negotiate any deals that would validate the unwarranted takeover of its business by the Russian government. It has informed Baltika that it has terminated all of its license agreements to produce, market, and sell its products in Russia.
Following the termination of its Russian business, Carlsberg will allow a run-off period until April 1, 2024, for the use of existing stock in the country. However, the future of Baltika, which employs 8,400 staff across eight plants in Russia, remains uncertain.
Despite the situation in Russia, Carlsberg reported sales for the quarter ending September 2023 in line with predictions. However, the company warned of potentially adverse impacts on the beer market due to weak consumer sentiment in Europe and South East Asia.