Discussion in 'Beer News' started by Todd, Nov 19, 2023.
That is awful. All these things will come back to haunt the Kremlin and their oligarchic ways. Hoping the best for the innocent employees.
To be fair, I believe this was in response to the US saying they would allow the use of the $300 billion of frozen Russian assets to go to rebuilding Ukraine. Regardless of right or wrong, taking another countries secure frozen funds and allowing them to be dispersed in a way of your choosing sets a dangerous precedence on par with nationalizing a privately owned brewery.
A Danish brewery with an expressed interest in exiting the market really doesn't factor in to this sort of tit for tat. So, I'm simply not seeing where the what you are describing is part of that. With Putin needing resources to fund his whimsical journey into global irrelevance. I can see that 38% market share being nationalized.
Sorry if you can’t see the obvious, but also your statement seems to contradict itself. Do some research- you’ll find my statement to be true. Putin had plenty of time to take this brewery over and the timing of the US and EU announced support for distributing frozen funds and Russia’s threat to enact revenge for it lineup with the first take over a few weeks later. Also Denmark is part of the EU aka the West aka NATO all of which are checking Russia so an asset like a Danish brewery does in fact factor into this sort of tit for tat. They arent seizing Chinese and Indian companies in Russia.
Directly from the article,
"The Danish brewer also said it had completed an "extensive process" to separate the Russian unit from the rest of the company. Last month, the company signed an agreement to sell Baltika Breweries but had not yet completed the deal."
With that part. I really just see that a large brewery was just stolen directly out from under Carlsberg. That's revenge? That's gaining a 38% market share at no cost. Sure be interested to see how they'll source the hops, and grain. Considering.
Why on earth is a western company like Carlsberg still operating in Russia? Having their brewery seized by the Kremlin! Serves them right.
It's a massive alcohol market. I get that there are unique costs and challenges or whatever but why would any international alcohol conglomerate not be trying to operate in that market if its available?
I imagine for the same reason a lot of other companies have pulled up stakes—the market outside of Russia (particularly wealthy Western countries) is far larger, and from a PR perspective to be seen doing business there post-invasion outweighs whatever potential benefits that would be gained by staying. Whether it’s based purely on public perception or whether it’s actually based on a moral position (never mind the inherent challenges that come with operating in a political environment where the whims of one man essentially decide your fate), lots of other businesses have decided to get out, even if it has hurt them financially in the short term.
I wonder if it has anything to do with the ‘Loncovilius carlsbergi’.,.
From the BBC link in the OP:
Heineken only finalized the sale of their Russian subsidiary a few months ago.
August 25, 2023 Heineken completes exit from Russia
Yes, the brewery was stolen out from under Carlsberg, but because it is a western owned brewery. Again, they aren’t nationalizing companies from nations friendly to Russia.
And it is revenge by the very definition. Putin threatened to take them over if the West escalated financial penalties- in this case it was threatening to give Ukraine Russia’s frozen funds. From a July 19 Forbes article: “Russia on Sunday seized control of the local subsidiaries of Danone and Carlsberg under a decree Putin signed in April. The decree allowed for the assets of companies or individuals from “unfriendly” nations to be taken over by the state in response to similar moves or the threat of them by those countries. The yogurt maker and the brewer had both been trying to leave Russia. “
Putin took them over within a week of the threat of Russian frozen funds being given away and he has had 3 prior months to do it if he had wanted. The timing is a complete tit for tat poke at the West.
I dunno, from what I have read less than 20% of western companies have ceased operations in Russia. There were a few high profile departures, but most European and American companies remain in operation. Obviously each company has to make its own decisions and whether the company has manufacturing infrastructure in the country vs just importing finished goods probably has a large impact on the value proposition.
Alcohol is rather important to a Russians life. So, I am simply not going to see a brewery whose stated interests were to get the eff out of dodge as really getting wrapped up in the sort of matter you wish them to get wrapped up in. Vendetta or not. This doesn't titillate me with subterfuge or intrigue so much as it informs me that Putin has gained a source of reliable, and consistent money from within.
Didn't realize that Baltika was Carlsberg. It's in most of the grocery stores in my neighborhood. Usually just sits and collects dust. It's on the cheaper side too.
Not a fan of Carlsberg or their complete market control in places like Hong Kong and Bangkok. Unless you go to a specialized bottle shop or microbrewery in those cities it's very difficult to find anything that isn't a Carlsberg product.