Hei-NO: Heineken among latest brands to suspend Russian activities over Ukraine invasion

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Beer giant Heineken and tobacco maker Imperial Brands have joined a growing list of companies to suspend operations in Russia as companies flee the country in response to the conflict. Ukraine.

Imperial-headquartered Ristol – the group behind brands including JPS and Davidoff cigarettes – said it was suspending production at its Volgograd plant, along with all sales and marketing in the country. water in a move affecting about 1,000 employees.

Russia and Ukraine together accounted for 2 percent of Imperial’s net sales last year, or about 780 million euros.

It comes just hours after Dutch brewer Heineken said it stopped making and selling its own brand beer in Russia.

The company is also considering its strategic options for the future of its business in Russia, where it has been operating for 20 years.

Carlsberg, a major Russian brewer through ownership of Baltika Breweries, announced last week that there would be no new investments or exports from the Carlsberg Group into Russia.

It says that during the humanitarian crisis, any profits generated by business in Russia will be donated to relief organisations.

It is also using its facilities in Ukraine and neighboring countries to provide humanitarian assistance to its employees and other Ukrainians, including providing shelter, transportation, food and fresh water. .

In 2021, Russia and Ukraine account for about 13 percent of the group’s revenue and about 9 percent of its operating profit, and Carlsberg expects the invasion to negatively impact the group’s financial results for 2022. .

Owner of KFC and Pizza Hut, Yum! Brands, previously revealed that it is suspending 70 KFC-owned restaurants in Russia and due to the suspension of all 50 Pizza Hut franchises.

Children’s retailer Mothercare also separately announced on Wednesday that it was suspending all of its business in Russia, which accounts for a quarter of retail sales worldwide, sending shares lower. more than 1/4 at a stage.

It follows announcements late Tuesday by Coca-Cola, Starbucks and McDonald’s that they would all suspend operations in Russia amid growing consumer backlash and threats of boycotts. for not being able to withdraw from Russia.

However, a host of global giants remain tight-lipped about their Russian operations, despite increased pressure from consumers.

Brands including Mondelez, owner of Cadbury, Durex, Reckitt, Dunhill and Lucky Strike maker British American Tobacco (BAT) are among those continuing to do business in the country.

BAT’s business in Russia employs about 2,500 people at its headquarters in Moscow, 75 regional offices and a factory in St. Petersburg.

It said it was ceasing planned capital investments in Russia and scaling back some of its business there “in line with the current situation”, including marketing.

But BAT’s factory and offices remain open.

“This rapidly evolving and complex situation requires us to continuously assess a range of factors and considerations,” said BAT.

“We are in compliance and will continue to comply fully with all international sanctions related to this conflict.”

https://www.independent.ie/world-news/europe/hei-no-heineken-among-latest-raft-of-brands-to-suspend-russian-operations-over-ukraine-invasion-41429600.html Hei-NO: Heineken among latest brands to suspend Russian activities over Ukraine invasion

Fry Electronics Team

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