3 Oct 2023 19:34

Carlsberg terminates license agreements with Baltika for producing, marketing, selling group's brands in Russia

MOSCOW. Oct 3 (Interfax) - Carlsberg Group has terminated the license agreements with Baltika for producing, marketing and selling all of the group's products in Russia, including international and regional brands, the Danish concern said in a press release.

The Baltika brewing company, owned by Denmark's Carlsberg, was transferred to the temporary management of Russia's Federal Property Management Agency (Rosimuschestvo) in mid-July 2023 as per Russian presidential decree.

According to the press release, Carlsberg is terminating the license agreements in response to the presidential decree.

Baltika will be able to sell and use already existing stock and materials until April 1, 2024, during the limited run-off period, Carlsberg said.

"We have now concluded that we currently see no path to a negotiated solution for exiting Russia. We refuse to be forced into a deal on unacceptable terms, justifying the illegitimate takeover of our business in Russia," according to the press release.

Baltika is Russia's second largest brewing company and operates eight plants.

Baltika boosted revenue to 100.7 billion rubles in 2022 from 82.6 billion rubles in 2021, and net profit rose 1.9-fold to 9.952 billion rubles. Production declined 4.7% year-on-year to 197.42 million deciliters in 2022.