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Beam Suntory to exit Russia
Laphroaig owner Beam Suntory and UK-based Edrington have agreed to sell their joint business venture, Maxxium Russia, to the local management team.
Maxxium Russia is a distributor of alcoholic drinks, and a subdivision of the alliance of Beam Suntory and Edrington.
In a joint statement, Beam Suntory and Edrington said: “After suspending shipments to Russia following the invasion of Ukraine in early March, we began reviewing approaches to the future of the Russia business.
“We determined that the best way to exit the market was through a sale of the Russia joint venture to the local management team, and we wish our respected former colleagues the best with the future direction of the company.”
The companies said shipments will remain suspended ‘as we continue to abide by all applicable laws including international sanctions’.
The sale of Maxxium Russia marks Beam Suntory and Edrington’s last jointly-owned distribution business, after the two companies agreed to swap equity stakes in their distributions firms in the UK and Spain last year.
In March, Beam Suntory and its parent company Suntory committed US$600,000 to international charities working to address the humanitarian crisis in Ukraine.
A number of brands have been making business moves in support of Ukraine following Russia’s invasion of the country.
Last month, Diageo announced its decision to close down its Russia operations by the end of this year, citing its “support” for employees. The firm had suspended sales in the market in March alongside Brown-Forman, Pernod Ricard and Edrington. Nordic drinks firm Anora also stopped all sales to Russia to show its support for Ukraine.
Yamazaki owner Beam Suntory recently named Robbie Millar as managing director of the company’s Scotch and Irish whiskey portfolio.
Earlier this month, The Macallan maker Edrington reported a strong financial performance for the year ending 31 March 2022, posting a 45% increase in core revenue and a 53% rise in core contribution.
In January 2020, Suntory acquired a 10% stake in Edrington for an undisclosed sum.