Spirits giant Bacardi branded “international war sponsor”
UKRAINE – Bermudian based company Bacardi has been listed as an “international sponsor of war” by The National Agency on Corruption Prevention (NACP) for its continued operations in Russia.
The NACP – a central executive body responsible for developing anti-corruption policies and preventing corruption in Ukraine- has accused Bacardi of continued business operations in the Russian Federation.
With less competition in the Russian alcohol market, data on the Federal Tax Service of the Russian Federation showed that Bacardi Russia’s revenue in 2022 increased by 8.5% to RUB 32.6 billion (approx. $12.88 billion), and the net profit to RUB 4.7 billion (approx. $1.85 billion).
The spike represents 206.5% more than in 2021. Consequently, the company paid Russia more than $12 million in income tax, according to the statement.
Bacardi’s Russian business also imported $169m of products during the 12 months to June 30, according to an article in The Wall Street Journal.
Products imported include Grey Goose vodka, Bombay Sapphire gin, Oakheart rum, Dewar’s Scotch whisky, Patrón tequila and Martini-branded vermouth.
Earlier this year, Pernod Ricard bowed to international political pressure and stopped the export of its brands to Russia.
In a statement published on its website on Friday (12 May), the Martell brand owner confirmed it had ceased shipments of its international brands to Russia at the end of April.
The company added it would now run down existing inventories before ending the distribution of its portfolio in the country, a process it said it anticipates “will take some months to complete“.
A spokesperson for Pernod Ricard confirmed this would mean the loss of around 300 job losses in Russia, as it wound down nearly all its operations there.
The spokesperson added that the Beefeater brand owner would retain a small presence in the country, with a view to being able to export its brands again in the future.
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