Carlsberg Group has communicated to Baltika Breweries its decision to end the license agreements that grant Baltika the rights to manufacture, promote, and distribute Carlsberg products.
As part of the termination process, there will be a transition period extending until April 1, 2024, during which Baltika will be allowed to deplete existing stock and materials.
This development is seen as a response to Moscow’s perceived unlawful assumption of control over its Russian breweries in July. Carlsberg has stated that it is a reaction to the presidential decree issued on July 16, 2023, which temporarily placed the management of Baltika under Russian authorities.
In July, Vladimir Putin signed a decree announcing that the Russian government would temporarily assume control of Baltika, the local brewing subsidiary of Carlsberg, along with the Russian subsidiaries of several other global food and beverage companies.
In a statement, the beer giant said, “We have now concluded that we currently see no path to a negotiated solution for exiting Russia. We refuse to be forced into a deal on unacceptable terms, justifying the illegitimate takeover of our business in Russia.”
“We are continuing to take all possible actions, including legal, to protect our employees, assets and operations.”
Reuters reported that Russian court documents dated September 25th revealed that Baltika had attempted to compel Rospatent, Russia’s intellectual property agency, to disregard any requests from Carlsberg to revoke its rights to brands like Tuborg and Kronenbourg. However, the court dismissed Baltika’s request.
“It is unclear, what formally will be the next steps in relation to Baltika,” Carlsberg said. “As Carlsberg Group, 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.”
“As a result, we will fully impair the value of our business in Russia,” the group added.
