Baltika Breweries Initiates Legal Battle Against Carlsberg Subsidiaries
In a significant escalation of corporate conflict, Russia’s Baltika Breweries has launched a legal offensive against four subsidiaries of the Carlsberg Group, seeking damages that amount to a staggering 6.24 billion Danish crowns (approximately $902 million). This legal action is the latest development in the ongoing tussle for control over Russia’s preeminent beer producer.
The dispute took a dramatic turn when Moscow authorities seized Carlsberg’s stake in Baltika in July 2023, placing it under “temporary management.” The move was met with stern criticism from Carlsberg Group CEO Jacob Aarup-Andersen, who denounced the act as tantamount to theft of the company’s business operations in Russia.
According to recent court filings in St Petersburg, the defendants named include Carlsberg Sverige, Carlsberg Deutschland, Carlsberg Breweries, and the Danish brewer’s Russian subsidiary, Hoppy Union. The exact nature of the claimed damages remains undisclosed, with previous court proceedings being held behind closed doors to safeguard trade secrets.
A representative for Carlsberg responded to inquiries with discretion, stating, “We are not commenting on specific court cases.” They reaffirmed the company’s commitment to “take all possible actions, including legal,” to protect their interests in Russia, emphasizing the welfare of their employees and the integrity of their assets and operations. Baltika has refrained from issuing any comments on the matter.
The legal strife extends to licensing issues as well. Carlsberg’s Kazakhstan unit has been drawn into the fray, challenging a Russian prohibition on selling Baltika-branded beer in certain international markets. This particular aspect of the dispute is set to be addressed in a preliminary arbitration hearing slated for May 15.
The brewing battle between Baltika and Carlsberg underscores the complexities of international business partnerships, especially in volatile political climates. With significant financial stakes and corporate reputations on the line, the global business community watches closely as these two brewing giants navigate through their legal entanglements.
