Heineken Completes Exit from Russia

Heineken N.V. said it completed the sale of 100% of its Russian business to Arnest Group for 1 Euro.  All remaining assets, including seven breweries in Russia, will be transferred to the new owners.

Arnest Group owns a major can packaging business and is the largest Russian manufacturer of cosmetics, household goods and metal packaging for the Fast Moving Consumer Goods (FMCG) sector.

Arnest Group has taken responsibility for the 1,800 HEINEKEN employees in Russia, providing employment guarantees for the next three years.

In addition to the Heineken brand which was removed from Russia in 2022, production of Amstel will be phased out within 6 months.

No other international brands will be licensed in Russia with the exception of a 3-year license for some smaller regional brands which are required to ensure business continuity and secure transaction approval. Heineken will provide no brand support and will receive no proceeds, royalties or fees from Russia.

Comment: As you look at that 1 Euro "sale" price for seven breweries and other assets, you may think The Wall Street Journal was 100% correct in its Saturday (8/26) edition carried an essay headlined "The Godfather in the Kremlin"  saying Russia has evolved "into a mafia state held together by violence and incapable of global leadership."