Ukraine: Carlsberg stops production after Russian invasion

After Russia launched a massive invasion of Ukraine this morning, Danish brewer Carlsberg said it has halted operations at its two most eastern Ukrainian breweries. "We have stopped production at our breweries in Zaporizhzhya and Kyiv and have informed our employees to stay at home and follow the instructions of the Ukrainian authorities," a Carlsberg spokeswoman was quoted by Reuters. Thus, the company wants to “take care of the safety of our employees in the country," she added. Carlsberg operates in total three breweries in Ukraine with the most western Lviv Brewery still in operation being the oldest industrial brewery of the country.

Carlsberg Ukraine is part of Carlsberg Group, and is the second largest brewer in Ukraine with a market share of almost  31% in 2019. The local group employs over 1,350 people directly and owns breweries in Zaporizhzhia, Kyiv and Lviv.

The portfolio of Carlsberg Ukraine includes the following beer, alcoholic and soft drink brands: Lvivske, Robert Doms, Baltika, Carlsberg, Tuborg, Kronenbourg 1664, Arsenal, Zhigulivske bottled in Zaporizhzhia, Kvas Taras, Somersby, Guinness, Seth&Riley's Garage, Warsteiner, Grimbergen and others.

Cider Somersby and Kvass Taras are leaders in their product categories, and the Baltika 0 brand has recently taken a leading position in the non-alcoholic beer segment in Ukraine.

Largest brewer in Ukraine is AB InBev Efes, a joint enterprise of the world’s largest brewing company AB InBev and Turkey’s biggest beer producer Anadolu Efes. The company was created when both companies merged their respective business in Russia and Ukraine in 2017. (inside.beer, 9.8.2017) Next to a strong presence in Russia, the group operates three breweries in Ukraine; Desna in Chernihiv, Yantar in Mykolayiv, Rogan in Kharkiv. Over 2,300 people are  working across the different operations in Ukraine.

So far, AB InBev Efes did not report any production shutdowns. Instead, the company presented today its results for 2021. According to Nielsen, the beer market in Ukraine shrank by 1.4% in 2021 amid adverse conditions related to the COVID-19 pandemic and rising consumer prices. Despite this, the brands Stella Artois (+0.4 %), Corona Extra (+0.1 %) and Velkopopovicky Kozel (+0.1 %) recorded an increase in market share in 2021 compared to the previous year.

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