French beverage company Pernod Ricard has halted all exports of its brands to Russia, bowing to public pressure following protests after it continued to export brands such as Jameson whiskey as war raged in Ukraine.
The decision marks a further withdrawal of the brand after it announced it would stop exporting Swedish vodka brand Absolut to its Russian distribution network last month.
The company, which owns more than 240 brands ranging from Beefeater gin to Perrier-Jouet champagne, announced on Friday that it has halted all exports to Russia as of the end of April. Existing stock will take a few months to sell locally, he said.
Pernod Ricard it runs a local distribution network and employs 300 people in Russia, but a person close to the company said the branch will now close and discussions are ongoing about how to manage the process.
“We are evaluating how to adjust our local organization in light of these decisions, while fully complying with all local legal regulations,” Pernod said, adding that he “will continue to support local employees throughout this process.”
Decision underscores growing pressure on Western consumer brands to stop operating in Russia following President Vladimir Putin’s decision invade Ukraine in February last year, even though the products they sell are not subject to Western sanctions.
The Paris-listed family group halted all shipments of its products to Russia in March last year after war broke out, before resuming some exports a few months later after the sale of pre-existing stocks.
Pernod Ricard, which is the world’s second-largest beverage maker by sales, said it has restarted local distribution to support its local employees and protect its brands from gray market distribution by third-party players.
But in the West, public pressure grew for the company to cease all operations in Russia. It has halted all shipments of bottles of Absolut vodka after sharp criticism in Sweden and Finland, where some restaurants have threatened to stop selling the group’s products.
Sweden and Finland have agreed to join the NATO military alliance following Russia’s full-scale invasion of Ukraine, highlighting the degree of opinion in neighboring countries against Moscow.
Earlier this month, Irish Senator Garret Ahearn called for Pernod Ricard to be added to the EU sanctions list at the bloc’s next meeting of foreign affairs ministers.
“As Russian drones and missiles rain down on Kiev this week, our Jameson whiskey continues to quench Putin’s thirst. Time out. This cannot continue,” she said. “The time has come for the EU to act as Pernod Ricard’s commercial decision was not clear or transparent enough.”
—————————————————-
Source link