Putin tightens grip on beer industry with latest acquisitions
Vladimir Putin has taken control of breweries owned by Belgian and Turkish companies. This move involves a company that produces beer brands such as Bud, Stella Artois, Löwenbräu, and Velkopopovický Kozel. Moscow has also seized subsidiaries of companies seeking to exit Russia, including Carlsberg and Danone.
"By the end of 2024, Russia's President, Vladimir Putin, added the company InBev Efes to his list of acquisitions. This represents one of the three largest beer producers in Russia and the last one still under foreign control," reports "Gazeta Wyborcza".
The company in question is a joint venture between the Belgian and global brewing giant Anheuser-Busch InBev and the Turkish industry leader Anadolu Efes. It has been placed under the temporary yet indefinite management of the company GK Wmiestie.
InBev Efes operates 11 breweries and three malt houses, producing beers including Bud, Stella Artois, Löwenbräu, and Velkopopovický Kozel, according to "GW".
Putin closes doors to Western companies in Russia
The takeover of these breweries by the Russian president, specifically through forced administration, is part of a broader strategy aimed at increasing control over key economic sectors.
Since Russia's invasion of Ukraine, Western corporations have been trying to leave the country with minimal losses or seeking ways to continue operations while safeguarding their assets, profits, and personnel.
However, Russia has complicated the exit process. Companies wishing to withdraw must now accept a 60% reduction in the sale value. Moscow has also taken over subsidiaries of companies attempting to leave its market, including Carlsberg and Danone, effectively closing the door to the Belgian giant.
"In October, Anadolu Efes and AB InBev agreed to swap stakes in their businesses in Russia and Ukraine. Under the deal, the Turkish brewer would become the sole owner of the Russian business, while AB InBev would acquire the Ukrainian unit. AB InBev had previously wanted to sell control of both operations to Anadolu Efes, but Russia objected to that plan," writes Bloomberg.
