How AB InBev got entangled in Russia

AB InBev thought it had found a solution in Russia: the brewing group reached an agreement with the Turkish company Anadolu Efes. But now that Turkey has fallen from grace, the Kremlin is nationalizing all 11 breweries.

Geopolitical reprisals

Russia (temporarily) nationalized AB InBev’s eleven breweries and placed them under the control of GC Vmestea company founded by an obscure Russian businessman, Nikolai Tyernikov. The timing of this incorporation in August 2024, just after the failure of a previous attempt by AB InBev to sell its Russian interests, raises questions. This is what De Standaard reports.

The Kremlin’s unexpected intervention appears to be part of a geopolitical strategy targeting Turkey, according to the Russian economic newspaper Kommersant, given recent tensions in Syria and Azerbaijan. Indeed, AB InBev has long operated in Russia and Ukraine with Anadolu Efes, a Turkish partner. Due to the war in Ukraine – and accompanying Western sanctions – the beer giant tried to sell its stake in the joint venture, but the Kremlin refused last summer.

All beer in hand

AB InBev therefore had to continue operating in Russia, but ceded full control to Anadolu Efes. Until the Russian authorities wanted revenge on Turkey, through Stella and Leffe. For AB InBev, however, the consequences seem limited: the brewing giant had already been nothing more than a silent partner since 2022 and had written down its Russian activities by $1.14 billion.

For Anadolu Efes, on the other hand, things are not looking good. Previously, Carlsberg et Heineken saw their Russian operations transferred to local parties. Insiders believe this is a deliberate strategy aimed at putting Russia’s beer sector entirely in the hands of local authorities.