Heineken,Imperial Brands To Exit Russian Operations
Coca-Cola, Starbucks, and McDonald’s companies last week announced the suspension of operations in Russia amid a growing consumer backlash.
Beer giant Heineken and cigarette makers have joined a growing list of firms to halt operations in Russia amid a corporate exodus from the country in response to the Ukraine conflict.
Bristol-headquartered Imperial, the group behind brands including JPS and Davidoff cigarettes said, it was pausing production at its factory in Volgograd, alongside all sales and marketing activity in the country in a move impacting around 1,000 employees.
Russia and Ukraine together accounted for 2% of Imperial’s net revenues last year, or around £656 million.
It came just hours after Dutch brewer Heineken said it was stopping the production and sale of its own-brand beer in Russia.
The firm is also reviewing its strategic options for the future of the business in Russia, where it has had operations for 20 years.
The owner of KFC and Pizza Hut, Yum! Brands had earlier revealed it was pausing 70 KFC company-owned restaurants in Russia and was due to suspend all 50 Pizza Hut franchise outlets.
Babycare retailer Mothercare also separately announced on Wednesday that it has paused all its business in Russia, which accounts for up to a quarter of its worldwide retail sales, sending shares plunging by more than a quarter at one stage.
Brands including Cadbury owner Mondelez, Durex to Dettol maker Reckitt and Dunhill, and Lucky Strike maker British American Tobacco (BAT) are among those continuing to trade in the country.
BY REUTERS
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