Carlsberg ‘shocked’ at Russian capture of business
The chief executive of Carlsberg has described his “shock” over Russia’s seizure of its business after the brewer left the territory.
Last month, Russia took control of the beer maker’s eight breweries and 8,400 employees in the country after it closed a sale of the business to an undisclosed buyer.
“We have known from the beginning, since announcing the intention to leave Russia in March of last year, that there was huge interest in the business from people inside Russia. But still, this is an unprecedented development,” Carlsberg CEO Cees ‘t Hart said on a media call, according to reports in Reuters.
“Technically, this is not a nationalisation, but how it will unfold is unclear for us at this point in time,” Hart said. “This latest development will make it even more painful to leave Russia.”
It is understood that Carlsberg is not in contact with any of its employees in the country but has limited contact with the Russian authorities.
Since Russia’s invasion of Ukraine a number of businesses have pulled out of state including McDonald’s and Coca-Cola, however the Kremlin has retaliated by seizing some Western assets.
On Wednesday. Carlsberg reported a 6.6 per cent rise in revenues in the half year to DKK 37.7bn (£4.4bn).
On Tuesday. the company also revealed it was raising its earnings expectations for 2023, with operating profits expected to grow between four and seven per cent.
It previously predicted a two per cent contraction and five per cent growth.
Carlsberg was contacted for comment.