Pernod Ricard Stops Drink Exports to Russia
Pernod Ricard, the world’s second-largest spirits maker, has announced that it will stop exporting drinks to Russia. The company, which produces brands such as Absolut vodka and Chivas Regal whiskey, said it plans to exit the Russian market entirely.
Background
Pernod Ricard has been selling drinks in Russia since the early 1990s. The company has had a presence in the country for more than 25 years, and it has been one of the leading foreign spirits producers in the country.
However, the company has faced a number of challenges in the Russian market. In 2014, the Russian government imposed a ban on the import of certain alcoholic beverages, including those produced by Pernod Ricard. This ban was in response to the sanctions imposed by the West on Russia in the wake of the Ukraine crisis.
Impact of Sanctions
The sanctions have had a significant impact on Pernod Ricard’s business in Russia. The company’s sales in the country have declined significantly since the sanctions were imposed. In addition, the company has faced difficulties in obtaining the necessary licenses and permits to operate in the country.
Pernod Ricard’s Decision
In light of these challenges, Pernod Ricard has decided to stop exporting drinks to Russia. The company said it plans to exit the Russian market entirely.
The company said it will continue to support its existing customers in Russia, but it will no longer be selling drinks in the country. The company said it will focus its efforts on other markets where it can be more successful.
Reaction from the Russian Government
The Russian government has reacted negatively to Pernod Ricard’s decision. The government has accused the company of “economic aggression” and has threatened to take retaliatory measures.
Future Outlook
It remains to be seen how the Russian government will respond to Pernod Ricard’s decision. The company’s decision to exit the Russian market could have a significant impact on the country’s economy.
In the short term, the company’s decision could lead to a decrease in the demand for alcoholic beverages in Russia. This could have a negative impact on the country’s economy, as the alcohol industry is a major contributor to the country’s GDP.
In the long term, the company’s decision could lead to a decrease in foreign investment in Russia. This could have a negative impact on the country’s economy, as foreign investment is a major source of capital for the country.
Conclusion
Pernod Ricard’s decision to stop exporting drinks to Russia could have a significant impact on the country’s economy. The company’s decision could lead to a decrease in the demand for alcoholic beverages in the country, as well as a decrease in foreign investment. It remains to be seen how the Russian government will respond to the company’s decision.