Controversy around AB InBev and the launch of beer production in Russia
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Beer giant Anheuser-Busch InBev (AB InBev) is in the hot seat in its home country of Belgium after revelations from RTBF that the world’s number one in the sector is preparing to launch production of certain of its products, including the famous blonde and brown Leffe, in some of its Russian units. Beer is not, any more than other food products, targeted by the various sets of sanctions adopted by the European Union (EU) since the outbreak of the Russian offensive against Ukraine on February 24.
Provided, however, that the European companies do not collaborate with persons or entities targeted by the EU, and that they otherwise respect the prohibitions concerning, for example, the transport or the financing of activities in Russia . On August 5, the Belgian-Luxembourg Chamber of Commerce in Russia, in Moscow, announced the launch of beer production at seven Russian sites. Information quickly relayed in Ukraine and which led to calls for a boycott of the Belgian-Brazilian giant, especially since the latter had announced, in April, that it wanted to suspend its activities on Russian territory.
Contradictory positions
The group produces there, in eleven factories in total, some seventy-five of its brands, including Stella Artois and Corona, but not Leffe. At the beginning of August, the Russian press was delighted to see the group evoke the need to face up to “logistical difficulties” and to ensure the availability of products by launching, in Russia, the production of brands hitherto imported, including Leffe and Spaten. A position taken by AB InBev and Anadolu Efes, the Turkish brewery with which the group is in fact associated on the Russian market as part of a joint venture (joint venture).
In 2018, the Belgian-Brazilian group decided to merge its activities in Russia and Ukraine with the Turkish company, which was to assume operational management in these markets. Two years earlier, AB InBev had also acquired 24% of Anadolu Efes. On April 22, two months after the outbreak of war in Ukraine, apparently seeking to disengage from the Russian market, the world leader said it wanted to sell its stake in the joint venture. A process presented as very complex and subject to the final approval of the Russian Ministry of Finance.
Partner “non-controlling”, he pointed out, AB InBev assured at the time that it wanted to give up any financial advantage of its joint venture, while saying its wish to support its employees in Russia. A position apparently contradictory with this recent announcement of a localization of the production of flagship brands on Russian territory, in order to “maintain a broad presence of products in all sales channels”, according to a text by the Russian marketing director of AB InBev-Anadolu Efes. Asked by RTBF to react to this information, AB InBev did not respond on Saturday August 20.
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