Pernod Ricard U-turns on Russia exports

Beefeater gin owner Pernod Ricard is “working to find a way” to halt exports of its international brands to Russia following protests in London and Ireland.

This week, the Jameson owner faced calls for a portfolio-wide boycott of its brands after the company confirmed it had resumed exports to Russia.

Protests have been held outside the UK Houses of Parliament, the Tower of London, and the Beefeater Distillery in south London, as well as outside the headquarters of Irish Distillers and Pernod Ricard in Ireland.

The protests, organised by the Ukraine Solidarity Project and Ukrainian Action Ireland, saw activists handing out flyers accompanied by digital ad vans that encouraged people to “Stop serving Putin” and “Boycott Jameson, Stand with Ukraine”. The activists demanded that Pernod Ricard cease exporting its products to Russia.

Speaking to The Spirits Business earlier this week, a Pernod Ricard spokesperson declined to confirm whether the decision to continue exporting its portfolio to Russia would be reversed following the most recent outcry, as had been the case with Absolut Vodka the previous week.

The spokesperson explained the decision to continue exports to Russia had been made to ensure the “economic viability” of the company, which “defines the level of activity below which a company and employees are at risk of ‘intentional bankruptcy’, which is a criminal offence in Russia.”

However, in a statement published on the Pernod Ricard website yesterday (27 April), the company said it was “working hard to find the best way to navigate this complexity, including stopping the export of our international brands while ensuring the welfare and safety of our team, considering the local legal constraints.

“We fully understand and acknowledge the reaction over the recent days as we sought to give context to the decisions we have taken,” the statement said. “Many companies, in our industry and in others, have made the same difficult choice.”

Pernod Ricard warned the move would not stop its brands from “falling into the hands of the ‘grey market’, which has strongly increased in recent months, over which we have no control”.

The statement concluded: “Our commitment to protect our colleagues in the region has been the guiding principle of the difficult choices we have made, and we continue to work hard to find the best solution to this difficult dilemma. We will be providing updates as appropriate.”