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Drinks

Anora Suspends Sales To Russia, Verallia Halts Production In Ukraine

Finnish drinks manufacturer Anora has announced it is suspending all sales to Russia, with its chief executive Pekka Tennilä saying that the group is "deeply concerned" about the conflict there.

The company has said that it is making a donation of €50,000 to the Ukrainian Red Cross to help support the Ukrainian people.

“[We] want to offer our support to the Ukrainian people”, Tennilä said in a statement.

Anora, which also includes the companies Anora Industrial and logistics company Vectura, exports to more than 30 minutes globally. The group employs around 1,100 people, and reported pro forma net sales of €628 million in 2020.

Verallia Suspends Production

Elsewhere, packaging firm Verallia has said that it is temporarily suspending production at its Zorya site in Ukraine, given the nature of the conflict.

'Given the recent evolution of the situation, and to protect its teams locally, Verallia has decided to temporarily suspend its production in Ukraine, while keeping its two furnaces in hot condition for the moment', the glass maker said in a statement.

Tougher Sanctions Needed

Separately, a leading professor in economic geography has said that tougher sanctions will be needed in order to deter Russia's illegal military activity, with focus also needed on the country's wheat and energy exports.

Professor John R. Bryson at the the University of Birmingham, said "Countries must agree to reduce their dependence on Russian oil and gas with immediate sanctions imposed on Russia’s energy sector. These sanctions must include all major Russian exports including wheat."

Sanctions such as this could have an "extreme negative impact" on the global economy however, and "result in rapid energy and food price inflation, including energy shortages across Europe and elsewhere. Any attempt to reduce the impacts on the global economy would, however, ultimately encourage further conflict to occur either led by Russia or other countries."

For sanctions to be effective, Bryson argued, they must have a "major negative impact" on the everyday lives of all Russian citizens, although he warned of a potential "triple tragedy" that would emerge from the introduction of tougher sanctions.

"First, we need always to remember that innocent Ukrainians are being killed by the activities of Russian soldiers," he said. "Second, there is the tragedy of the Russian people as effective sanctions must disrupt their everyday lives. Third, there is the tragedy that will come from imposing sanctions on Russia including increased energy and food poverty in other counties.

"Nevertheless, without effective sanctions there will be other military annexations made by Russia and other countries."

© 2022 European Supermarket Magazine – your source for the latest Drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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