Heineken N.V. (EURONEXT: HEIA) finalized the sale of its Russian division to the local producer, Arnest Group, for a nominal fee of €1. This decision led to a financial setback of €300 million (£256 million) for Heineken, according to an official company release.
The move to sell began in March of the previous year, coinciding with the onset of the Ukraine conflict. With this transaction, Arnest Group, a leading Russian producer of cosmetics, household items, and packaging, will assume control over seven Heineken breweries along with any other outstanding assets.
Arnest Group has committed to retaining Heineken’s 1,800 staff in Russia and has pledged job security for them for the upcoming three years.
Despite discontinuing the Heineken brand’s production and sales in Russia in the past year, the manufacture of Amstel, another flagship brand of the group, is set to gradually end in the next half-year.
The Dutch brewery clarified, “In Russia, no other global brands will receive licenses, with the sole exception being a 3-year permit for certain smaller regional brands, crucial for maintaining operational consistency and facilitating the deal’s approval. No branding support will come from Heineken, nor will they gain any proceeds, royalties, or fees from Russia.”
Following this announcement, Heineken’s stock witnessed a slight uptick of 0.5% on Friday, starting the trading day just above €88.6.
