AB InBev exits Russia

The Belgium-based brewer faces a $1.1 billion impairment charge in its Q1 results.

Photo credit: Getty Images
Photo credit: Getty Images

Anheuser-Busch InBev is selling its non-controlling interest in the AB InBev Efes joint venture, which operates in Russia and Ukraine. 

Turkish brewer and joint venture partner Anadolu Efes is in active discussions to acquire AB InBev’s share.

In a statement on Friday, AB InBev said that its priority remains supporting its employees, their families and humanitarian relief efforts in Ukraine. 

As a result, AB InBev will report a $1.1 billion "non cash impairment charge" in its Q1 results. 

The Ab InBev Efes joint venture has 11 breweries in Russia, employing 3,500 people, as well as three breweries in Ukraine that employ 1,800. 

AB InBev will supply displaced employees with counseling, housing and financial aid, and will partner with relief organization Caritas to provide essential supplies to Ukraine and other surrounding refugee relief areas. 

The world’s largest brewer has also introduced popular Ukrainian beer brand Chernigivske to various European and South American markets. All profits from the sale of Chernigivske will be donated to help humanitarian relief efforts.

Anheuser-Busch InBev declined to comment further.

The company’s decision marks another move from alcohol providers to cut ties in Russia and comes after the company suspended sales of Budweiser in the region last month. 

In March, Carlsberg and Heineken left the Russian market, while vodka brand Stoli rebranded from Stolichnaya to more accurately represent the company’s Latvian roots.

In total, more than 750 companies have halted operations in Russia since the invasion of Ukraine began in late February, according to Yale University’s School of Management.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in