Budweiser brewer Anheuser-Busch InBev is to pull out of Russia over Ukraine invasion
(Picture: AB InBev )The world’s biggest brewer is to take a $1.1 billion hit as it pulls out of Russia.
AB InBev, the Belgian-US brewer of Budweiser, Corona and Becks, has announced plans to exit the country by selling its stake in a Turkish joint venture, which serves the region. The decision to exit comes in response to Russia’s invasion of Ukraine.
In a statement, AB InBev said its “focus remains on assisting its people, their families and the overall humanitarian relief efforts while wishing for peace”.
The company is in “active discussions” with its business partner, Turkish brewer Anadolu Efes, about selling its joint venture stake. The brewer had already announced its intention to forfeit all financial benefits from the joint venture.
Exiting the business means AB InBev will incur a $1.1 billion “non-cash impairment charge” in the first quarter.
As part of withdrawal negoitaitons, AB InBev’s is asking its joint venture partner to stop production and sale of Budweiser in Russia.
The brewer “continues to support its employees, their families and the humanitarian relief efforts in Ukraine,” it said. “Support for its displaced employees and their families includes counseling, housing and financial support.”
AB InBev is working in partnership with other companies and local non-government organisations (NGOs) to provide food, blankets, medical supplies and three million cans of emergency drinking water to Ukraine and surrounding refugee relief areas.
AB InBev recently introduced Ukrainian beer brand Chernigivske to countries including the UK, Germany, Belgium, France, Netherlands, Denmark, Austria, Poland, Italy, Colombia and Brazil with plans for a larger rollout in further countries.
All profits from the sale of Chernigivske go to supporting humanitarian relief efforts. AB InBev is guaranteeing at least $5 million (£3.9 million) of support from the humanitarian initiative.
The decision to withdraw from Russia follows similar moves from rivals Carlsberg and Heineken.
