The world number two in spirits Pernod Ricard has finally given in to the controversy that erupted in Sweden over its exports of Absolut vodka to Russia: the French group announced this Friday, May 12 that it was going to stop selling its products there. .
Should French brands leave Russia?
Pernod Ricard, which owns, among other things, Havana Club rum, Jameson whiskey and Mumm champagne, “is able to confirm that it ceased all exports of its international brands to Russia at the end of April 2023”he said in a statement.
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“We will also cease distribution of our wallet in Russia, a process which we believe will take a few months”, he added. In concrete terms, the group no longer ships anything to Russia, but the stock still there will be distributed in the coming months.
Auchan, Bonduelle and Lactalis still in Russia
Pernod Ricard has recently been caught in the turmoil in Sweden due to the discreet resumption of its exports to Russia, in particular of the Swedish vodka Absolut, after they had been suspended at first, just after the start of the invasion of Ukraine by Moscow.
Faced with the start of a boycott and criticism from Swedish Prime Minister Ulf Kristersson, the group announced on April 18 that it was interrupting its shipments of Absolut to Russia. But the group’s CEO, Alexandre Ricard, told AFP a few days later that his company would continue to export its other brands. “before seeing more clearly”.
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According to the Yale University website, more than a year after the start of the conflict in Ukraine, “about 1,000 companies have publicly announced that they are voluntarily restricting their operations in Russia beyond the bare minimum legally required by international sanctions”but many others remain there, including the French groups Auchan, Bonduelle and Lactalis.
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Expeditions to “protect local teams”
Pernod Ricard exports and distributes bottles in Russia, without having any production activities there.
According to his boss, the group was already going “beyond compliance with (international) sanctions”refraining from selling to “levels at which he could sell if he wished”. The company also had “virtually stopped marketing investments”noted Alexandre Ricard at the end of April with AFP.
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Liquor shipments continued to maintain a certain level of activity on site and “protect the local teams” possible accusations of “intentional bankruptcy”, explained the CEO. The local teams are made up of 300 employees, said the group’s press service.
France was the first foreign employer in Russia
From now on, “we are evaluating how to adapt our local organization in light of these decisions, while fully respecting all local legal regulations”says the group in its brief press release published on Friday.
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“Since the outbreak of war, our guiding principle has been the well-being of our teams, wherever they are based, and we will continue to support our local employees throughout this process,” he notes.
Before the war, Russia represented less than 3% of Pernod Ricard’s turnover.
More than 500 French companies (including 35 CAC 40 groups) carried out activities in Russia, according to the Ministry of the Economy, according to which France was then the largest foreign employer in this country, with some 160,000 employees.
