Denmark’s Carlsberg Group, the world’s third-largest brewer, has confirmed the sale of its Russian business, the company announced this week.
Following last year’s decision to quit the Russian market and “the subsequent extensive process of separating the business from the rest of the Carlsberg Group,” the Danish brewer signed an agreement to sell its Russian business on Friday, according to a statement on the Carlsberg Group’s website.
The sum and the identity of the buyer have not been released. As the transaction is subject to a comprehensive regulatory approval process, the time frame of the final completion of the deal remain uncertain, the brewer explained.
Carlsberg Group owned eight breweries of the Baltika brand, one of the leading beer companies in Russia, with a market share of approximately 27% and more than 8,000 employees. Russia accounted for roughly 10% of Carlsberg’s global sales and 6% of its profits before 2022.
The Danish brewer announced its intention to leave Russia in March 2022, along with a number of other Western firms due to Ukraine-related sanctions. It ceased investments in Russia and halted production, sales, and advertising of the Carlsberg brand. In August, Carlsberg Group reported that the decision to leave the Russian market had resulted in $630 million in losses in the first half of 2022, despite sales growth elsewhere.
Last March, Carlsberg CEO Cees ‘t Hart said that the company wanted to add a buyback clause when selling its Russian business, which would allow it to return to the country once the sanctions are lifted.
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