Ball Corporation and Carlsberg joined Heineken N.V. today in announcing plans to exit their business in Russia.
Ball, the world’s largest manufacturer of aluminum beverage cans, today announced it plans to divest from its business in Russia.
“We have made the decision to reduce operations immediately at our three manufacturing facilities in Russia and are pursuing the sale of our Russian business to a new owner,” Ball said in a press release.
The Westminster, Colorado-headquartered company said it was “deeply troubled by the war in Ukraine.”
Ball, which has had a presence in the country since the 1990s, operates three Russian facilities located in Moscow, Vsevolozhsk and Argayash. Together in 2021, they accounted for 4% of the company’s total net sales and 8% of its total comparable operating earnings. The Russian facilities produced 5% of the 112.5 billion cans Ball shipped last year – about 5.625 billion cans, roughly half the number of cans Ball has estimated it is undersold by.
The news follows Ball’s announcement last week that it was continuing to operate its Russian facilities in compliance with laws and sanctions, and suspending future investment in the company. Ball also donated $250,000 to Global Giving and is supporting various relief efforts through its employee gift matching program.
Meanwhile, Carlsberg Group will also exit Russia, CEO Cees ‘t Hart announced today.
“We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment,” he wrote in a press release. “Upon completion we will have no presence in Russia.”
Copenhagen, Denmark-headquartered Carlsberg has owned Baltika Breweries, a leading Russian beer maker, since 2008. Earlier this month, Carlsberg said it would stop advertising of the Carlsberg and Baltika brands and would review its business operations in the company.
Sales in Russia and Ukraine accounted for 13% of Carlsberg Group revenue and 9% of its operating profit from its three regions. Last year, Carlsberg’s Russian business reported revenue of 6.5 billion Danish krone (about $959 million) and operating profit of 682 million Danish krone (about $100 million).
The company will treat its Russian business as an asset held for sale until a deal is closed. Carlsberg expects the divestment of its Russian operations to “result in a substantial non-cash impairment charge,” ‘t Hart wrote.
Carlsberg employs 8,400 people in Russia, which accounts for about 20% of its workforce.
“We deeply regret the consequences of this decision for our 8,400 employees in Russia,” ‘t Hart wrote. “Until the completion of the process, we will maintain the recently announced reduced level of operations to sustain the livelihoods of these employees and their families. Any profits generated during the humanitarian crisis will be donated to relief organisations.”
Earlier today, Heineken N.V. announced plans to sell its seven Russian breweries and expects to lose about €400 million in the transaction.