Profit of the Czech Budweiser Budvar fell by 40% after the cessation of supplies to Russia
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The profit of the Czech company Budweiser Budvar amounted to 200.8 million crowns (about $9.1 million), which is 40% less than in 2021. The company attributed the drop in profits to the cessation of beer supplies to Russia, as well as rising inflation.
As transmits Associated Press, citing company data, production of Budvar products decreased by 1.2% in 2022, to 1.78 million hectoliters. Exports decreased by 4%. Expenses incurred due to higher prices for electricity, fuel and packaging materials amounted to about $11.3 million.
On April 22, Belgian brewer AB InBev, which owned the Budweiser brand among others, announced about leaving the Russian market. The company’s assets were sold to the Turkish Anadolu Efes, a partner of the largest brewing company in Russia – AB InBev Efes.
In October 2022, the director of Budweiser Budvar, Petr Dvorak saidthat the supply of Budweiser beer to Russia is unlikely to resume in 2022, but in the medium term the company may return to the Russian market to protect its brand.
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