After a year and a half since Russia’s invasion of Ukraine, the Dutch group Heineken has finally decided to leave the Russian country for good, as have dozens of Western multinationals.
The Dutch brewing company recently announced the sale of its Russian operations for the symbolic amount of one euro. The offer was made by the Arnest conglomerate, known for being the largest producer of cosmetics, household goods and metal packaging for the consumer goods sector in that country.
The multinational Heineken has revealed disturbing news this past Friday: they have recorded a significant financial loss of 300 million euros. This is due to the transfer of the 7 factories they had abroad to the Arnest group, which is now the owner.
In addition, on the occasion of the recent agreement, Arnest announced that it will assume debts amounting to around EUR 100 million. It also pledged to retain Heineken Russia jobs for the next 3 years. As a result, 1,800 workers will temporarily retain their jobs in the country.
In February 2022, the multinational Heieneken decided to sell its assets without a buyback option following the invasion of Ukraine. This exit is final and the agreement contains nothing in this regard. The company does not expect this to have a negative impact on its earnings per share or affect the financial outlook for this year.
Dolph van den Brink, leader of the Dutch company, said that the sale marks the end of its presence in Russia. He stated in a press release that although the process took longer than expected, it was crucial to safeguard jobs and ensure that they left the country responsibly. However, the company was criticized in March for launching new products in Russia.
Indeed, the Heineken company has been forced to announce the suspension of production of one of its most iconic brands: Amstel, a decision that will take effect within six months. In addition, Heineken owns many other well-known brands including Zlaty Bazant, Guinness, Krusovice, Affligem, Gosser, “Hunting”, “Three Bears”, “Stepan Razin” and “Okskoe”.
Arnest is also known to be one of the leading manufacturers of aerosol products for the cosmetics, household and perfumery industries, becoming the industry leader in Russia and the CIS countries. The company’s headquarters are in Nevinnomyssk, Stavropol Territory. Arnest manufactures products in partnership 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.
A few months ago, the Arnest firm acquired several aluminum can plants in Chelyabinsk from the giant Ball Corporation, the U.S. company that manufactures containers for brands such as Coca-Cola and Heineken. Following this event, Arnest’s most important chiefs were awarded the ‘Merit to the Fatherland’ medal.
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