Carlsberg Group announced the termination of licensing agreements with Russian beer company Baltika that allowed it to produce and sell the Danish company’s products.
“We have informed Baltika Brewing Company LLC of the termination of licensing agreements that allow Baltika to produce, promote and sell all Carlsberg Group products, including international and regional brands” – reports Carlsberg press service.
Baltika was allowed to use existing product and material stocks only until April 1, 2024.
As the Danish company stated, this decision was a response to President Vladimir Putin’s decision in July to transfer Baltika to the interim management of the Federal Property Management Agency.
“We have come to the conclusion that we do not currently see a way to negotiate an exit from the Russian market. “We refuse to participate in a deal in which we are forced by terms that are unacceptable to us and justify the illegal takeover of our business in Russia,” Carlsberg said in a statement.
Baltika’s claim
On October 2, Baltika, St. He filed a lawsuit in the Arbitration Court of St. Petersburg and Leningrad Region, demanding that Danish Carlsberg be prohibited from terminating the license agreement for the use of brands. The brewing company specifically asked that Rospatent not be allowed to make changes to agreements for global brands Tuborg, Kronenbourg, Seth & Riley’s Garage, Holsten and LAV.
In the decision of the arbitration court, it was stated that Carlsberg could file a lawsuit in the Danish Maritime and Commercial Court in order to deprive Baltika of the rights to some brands.
Carlsberg assured yesterday, October 2, that they were not taking any legal action regarding this matter.
Transfer to Federal Property Management Agency
Shares in Russian structures of Danone and Baltika beer company in July 2023 affected It is under the temporary control of the Federal Property Management Agency. This comes as no surprise since Danone announced it would hand over control of its dairy and plant-based beverages business in October 2022. Carlsberg Group also announced at the end of June that it had completed the search for investors for Baltika and signed an agreement with the future owner of the assets.
98.56% of Baltika shares owned by Carlsberg, 1.35% owned by Hoppy Union LLC and 0.09% held by Carlsberg Deutschland GmbH were transferred to the interim management of the Russian state company.
Kommersant’s sources in the investment community noted that the transfer of Russian companies Danone and Carlsberg to the Federal Property Management Agency may mean that authorities are reluctant to allow large amounts of proceeds from asset sales to go abroad. This may affect the ruble exchange rate.
Baltika General Manager Appointed Taimuraz Bolloev, who headed the company from 1991 to 2004. The company’s main shareholder was Baltic Beverages Holding, which later came under the control of Carlsberg.
Baltika operates eight factories producing beer of more than 50 brands. The company produced 197.42 million decaliters of beer and beer beverages in 2022, ranking second after AB InBev Efes in terms of volume in Russia.
Carlsberg at the end of June guessIt was stated that the sale of assets in Russia would bring a loss of 1.4 billion dollars to the company.