Anheuser-Busch InBev has announced that it will sell its stake in the AB InBev Efes joint venture and is in active talks with its partner, Turkish brewer Anadolu Efes, to acquire this stake.
The announcement by the world’s largest brewer, based in Belgium, follows similar moves by rivals Carlsberg and Heineken. The joint venture has 11 breweries in Russia, employing 3,500 people, and three in Ukraine, with 1,800 employees.
AB InBev’s request regarding the suspension of the license to produce and sell Bud in Russia will also be part of the potential transaction. AB InBev has also announced that it is foregoing any financial benefits as a non-controlling partner of the joint venture operations. As a result, AB InBev has derecognized AB InBev Efes and will record a non-cash impairment charge of $1.1 billion in nonunderlying equity in earnings of associates as part of its first year of business.
However, together with its partner, AB InBev has also announced that it will continue to support its employees, their families by maintaining humanitarian relief efforts in Ukraine including counseling, housing and financial support.
In addition to donating to NGOs and the aid organization Caritas, AB InBev works with other companies and local NGOs to provide emergency food, water, electricity, medical supplies and 3 million cans of drinking water to Ukraine, as well as to refugee relief areas.
AB InBev has also introduced Chernigivske, Ukraine’s most beloved beer brand, in many countries, including the United Kingdom, Germany, Belgium, France, the Netherlands, Denmark, Austria, Poland, Italy, Colombia and Brazil, with other markets planned. All proceeds from the sale of Chernigivske will go to support humanitarian relief efforts and AB InBev will guarantee at least $5 million in support to sustain this humanitarian initiative.
