United Breweries - Holding (formerly Heineken in Russia)

History of Heineken in Russia

2024

Ex-President of AB InBev Efes headed the holding "United Breweries"

In mid-March 2024, the United Breweries holding (brands Krushovice, Bochkarev, Dr. Diesel, Mr. Lis, Shikhan, Okhota, etc.) announced a change in leadership. Oraz Durdyev, ex-president of AB InBev Efes, has been appointed its president. Read more here.

Appointment of Sergei Bykovsky as CEO

At the end of January 2024, it became known about the appointment of Sergei Bykovsky as General Director of United Breweries - Holding LLC (OPH) (ex-United Heineken Breweries). This is evidenced by the data of the Unified State Register of Legal Entities (USRUL). Read more here.

2023

The new owner of Heineken plants in Russia estimated the cost of their acquisition at 12 billion rubles

The new owner of Heineken factories in Russia, the Arnest group, estimated the cost of acquiring them at 11-12 billion rubles, taking into account all loans. According to the president and beneficiary of Arnest Alexei Sagal, OPH, when it acquired Russian breweries, invested borrowed funds from the parent company in them. It is the obligation to return this loan that is the key element of the transaction, and not €1, he explained in a conversation with RBC.

Tatspirtprom sold the beer factory to United Breweries for billions of rubles

On December 14, 2023, Tatspirtprom announced the sale of the White Kremlin plant to United Breweries - Holding (OPH). The financial terms of the transaction were not disclosed. Read more here.

The new owner of Heineken assets in Russia renamed the company

On December 4, 2023, it became known about the rebranding of Heineken in Russia. The "Heineken United Breweries" are now called the "United Breweries - Holding."

According to the president of the holding, Alexei Sagal, the group also changed the logo. It will now feature brewing tanks (instead of a red star). Sagal also explained to Vedomosti that the logo change was one of the terms of the deal with Heineken. The rebranding is also associated with the "strategy for the development of the holding in the Russian market," on which it is planned to spend about 10 million rubles. In addition, it is planned to spend funds on updating the site and promoting a new brand.

It became known about the rebranding of Heineken in Russia

As the owner of the Kaufman branding agency Stanislav Kaufman noted, despite the fact that the new owners got rid of the mention of a foreign brand, the changes were minimal - the same color scheme remained, and the words "United Breweries" remained in the name.

At the same time, an independent expert on the alcohol market Alexei Nebolsin called the rebranding ambiguous. In his opinion, getting rid of the mention of Heineken, a well-known brand in the beer segment, as well as the use of the word "holding" not related to alcohol, can lead to a decrease in the company's market share, which was 12% before rebranding.

In addition, the company also announced a management reshuffle. Georgios Polymenakos, who has served as CEO of the company since 2021, is moving to the position of vice president of commercial strategy. Ksenia Kostygova has been appointed Acting General Director of the company. Previously, she led the United Breweries in production, procurement, planning and logistics. Ksenia has been working for the company for more than 20 years.

To date, United Breweries - Holding owns seven breweries in St. Petersburg, Nizhny Novgorod, Novosibirsk, Sterlitamak, Yekaterinburg, Irkutsk and Khabarovsk, which produce more than 20 brands.^[1]

Arnest bought Heineken business in Russia for 1 euro

On August 25, 2023, the Dutch brewing concern Heineken announced the closure of a deal to sell its Russian business to the Arnest group. The transaction cost turned out to be symbolic - 1 euro. Moreover, the agreement does not provide for an option to buy back assets, which means that Heineken has finally left the Russian market.

Seven of their factories are now owned by Arnest Group, the Dutch company said. Also, within six months, the production of Amstel beer will be curtailed. Under the terms of the agreement, the buyer must pay off the debt of the Russian business to a foreign manufacturer in the amount of about 100 million euros. From the information on the website of the United Heineken Breweries, the transaction entails a total loss of 300 million euros for the Dutch company.

Heineken announced the closure of the deal to sell its Russian business

Heineken produced beer in Russia under the brands: Heineken, Amstel, Edelweiss, Guinness Original, Zlaty Bazant, Bochkarev, Okhota, Stepan Razin, Three Bears, Okskoye, Zhigulevskoye and others. The company notes that the transaction will slightly affect diluted earnings per share. Heineken said that by doing so they are completing their departure from Russia. They would like to do this faster, but the deal allowed "responsibly to leave the country."

Arnest is by August 2023 the largest manufacturer of perfume, cosmetic and household products in aerosol packaging in Russia and the CIS. It accounts for more than 53% of all aerosol products produced in Russia. The company is registered in Nevinnomyssk, Stavropol Territory. It produces products under a contract with foreign brands Unilever, Beiersdorf, Colgate-Palmolive, L'Oreal, Coty, Oriflame, and also owns the brands Beauty, Simphony, Dividend, Garden, Mosquitol.

Loss of 201 million euros due to depreciation of Russian assets

Heineken lost 201 million euros due to the depreciation of Russian assets. The brewing corporation announced this in its financial statements published at the end of July 2023.

We do not receive any financial benefit from current activities, will not profit from the sale of the business and have suffered a loss from depreciation to date in the amount of €201 million (€88 million in December 2022 and €113 million in June 2023), as a result of which the net book value is zero as of June 30, 2023, is specified in the materials of the concern.

Heineken lost 201 million euros due to depreciation of Russian assets

Heineken noted that by the end of July 2023, the company continues the process of leaving the Russian market and is trying to sell its business. However, its value for the company itself is zero. With all that in mind, Heineken has downgraded its own outlook for all of 2023. If earlier the company was counting on an increase in operating profit by 5-10%, now it allows almost zero growth of this indicator. Heineken stressed that the corporation is fully committed to its decision to withdraw from Russia, although the exact timing cannot yet be named.

Against the background of poor reporting and a deterioration in the forecast for the year, Heineken shares lose about 5% in price at the opening of trading in Amsterdam on August 1, 2023.

In April 2023, Heineken applied for the sale of Russian assets. The company also noted that global sales in the first quarter of 2023 decreased by 3.4% due to the departure from Russia.

The Russian subsidiary of Heineken - United Breweries Heineken LLC (OPH) owns seven breweries, is one of the top 3 Russian beer producers (by July 2023).

Recent events in Russia show that it has become even more difficult for businesses to obtain permission to exit assets. We announced that we applied for approval of the deal back in April [2023], we continue to work to close the deal, "Heineken said in a report for the first half of 2023.[2]

Parent company allows Russian unit to launch new local products to avoid bankruptcy

In March 2023, the Dutch brewing concern Heineken allowed the Russian division to launch new local products in order to avoid bankruptcy.

2022

Discussing launching a line of cola, orange and lemon flavours

In September 2022, the Russian structure of the Dutch Heineken thought about launching its own line of products with flavors of cola, orange and lemon. Competition is growing among new soda brands that would like to occupy the Coca-Cola and Pepsi niche, but original drinks remain on the shelves - they are imported on parallel imports.

Intention to sell business in Russia at an estimate of 475 million euros

In July 2022, it became known that Heineken plans to reach an agreement on the sale of business in Russia in 2022, the company estimated its assets in Russia at 475 million euros.

Suspension of the release of beer under the Heineken brand after the start of Russia's special operation in Ukraine

In Russia, the production of beer under the Heineken brand is suspended. This became known on March 9, 2022.

At the same time, all factories, operating and commercial divisions of the company in the country will continue to operate normally.

Heineken will suspend the production and sale of beer under the Heineken brand in Russia. At the same time, all factories, operating and commercial divisions of the company in the country will continue to operate normally, maintaining a wide portfolio of beer and cider brands, the report says.

The company also reported that the Heineken concern refuses to receive financial benefits from the operating activities of its Russian division. This decision was made by the company in connection with the development of the situation in Ukraine. This means that the company will not receive cash, royalties and dividends from its Russian division, explained in Heineken. Heineken added that the concern is monitoring the situation and evaluating various strategic scenarios.

The company expresses the hope that the path of a peaceful settlement will be found in the near future, - added[3].

2021:7 breweries in Russia

For 2021, Heineken owns seven breweries in Russia. The Russian division of the company employs more than 1,800 people.

Photo: architizer.com

2010

In 2010, the Dutch company Heineken worked in the Russian Federation as LLC United Heineken Breweries and owned 8 breweries in Russia:

• Heineken Brewery (St. Petersburg),
• "Heineken Siberian Brewery" (Novosibirsk),
• "Sheehan" (Sterlitamak),
• Volga (Nizhny Novgorod),
• "Patra" (Yekaterinburg),
• Baikal (Irkutsk),
• brewery of the PIT group (Kaliningrad),
• Amur-Beer (Khabarovsk).

President of the Russian representative office of the company for 2010 - Dimitar Aleksiev.

Stamps issued by Russian enterprises at that time:

• "Bochkarev,"
• "Pete ,"
• "The Hunt,"
• "Stepan Razin,"
• " Three Bears,"
• " Doctor Diesel,"
• "Sheehan ,"
• "Gray Ural,"
• "Okskoe,"
• Zhigulevskoe Heineken,
• "Patra ,"
• "Sagittarius,"
• "Ostmark,"

• Heineken,
• Amstel,
• Edelweiss,
• Guinness Original,
• Gosser,
• Buckler,
• Zlaty Bazant,
• Konigsberg.

Heineken was the exclusive distributor of premium brands Guinness Drawn and Kilkenny, which were sold in pubs throughout Russia.

2008: Revenue 16.9 billion, loss - 2.3 billion rubles. Market share 15.8%

In 2008, according to SPARK-Interfax, the revenue of the parent LLC United Breweries Heineken - 16.9 billion rubles, net loss - 2.3 billion rubles. The company controls 15.8% of the beer market.

2007: Market Share 12.8%

At the end of 2007, Heineken's market share in Russia was 12.8% by value.

2006: Market Share 16.2%

In 2006, Russian breweries Heineken produced 13.7 million hectoliters of beer. At the end of 2006, Heineken's market share in Russia was 16.2% by value.

In November 2006, the production of a new Bud beer was launched under license from the American Anheuser-Busch. At the Kaliningrad plant, by order of Kirin, the brand of the same name is produced. The contract expired at the end of 2008.

2002: Getting Started in Russia

Heineken has been operating in the Russian market since February 2002, when the first brewery in St. Petersburg was acquired.

Beer facts

Notes