Brewer Carlsberg Ends License Agreements In Russia

By Reuters
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Brewer Carlsberg Ends License Agreements In Russia

Carlsberg has terminated its license agreements in Russia following Moscow's decision earlier this year to take control of the Danish group's breweries in the country.

The Baltika breweries will be able to use existing stock and materials from Carlsberg until 1 April 2024, the Danish brewer said.

'It is unclear what formally will be the next steps in relation to Baltika,' Carlsberg said in a statement.

'We retain title to the shares in the company while the temporary management is transferred to the Russian state. What the Russian state chooses to do under these circumstances is not clear,' the group added.

The Russian state took control of Carlsberg's stake in local brewer Baltika Breweries in mid-July, putting it under 'temporary management' of government property agency Rosimushchestvo.


Carlsberg had eight breweries and about 8,400 employees in Russia, and took a DKK 9.9 billion (€1.33 billion) write-down on its Baltika unit in 2022 following Russia's invasion of Ukraine.

First-Half Performance

In August, the brewer reported a 11.2% increase in revenue in the first half of its financial year, however volumes were still down in its Western Europe (-2.1%) and Central & Eastern Europe (-1.9%) markets.

Volumes were up by 4.8% in Asia however, which lifted the overall organic volume growth for the period to 0.8%, the Danish firm added.

The group reported volume growth across its premium beer portfolio, with Tuborg up 3%, Carlsberg up 1%, 1664 Blanc rising by 5% and Brooklyn up 52%. Somersby cider fell by 7% in volume terms.


Revenue growth was reported in all regions, Western Europe (+9.2%), Asia (+11.7%) and Central & Eastern Europe (+16.3%), while the business reported organic operating profit growth of 5.2%.

Read More: 5 Challenges Facing New Carlsberg CEO Jacob Aarup-Andersen

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