The Finnish coffee cup and packaging giant has begun the process of selling its Russian interests and indicates the ongoing invasion of Ukraine has made long-term growth in the country unviable
Huhtamaki is divesting its Russian business, which accounts for around 3% of total group sales | Photo credit: Huhtamaki
Huhtamaki has announced that it will divest its operations in Russia due to the ongoing invasion of Ukraine. The Finnish coffee cup and packaging giant said it would be exploring potential buyers for its Russian business after assessing that the war in Ukraine ‘would prevent the realisation of its growth strategy and long-term ambitions in the country’.
The announcement follows an earlier decision to cease all investments in Russia following the outbreak of the invasion in February.
Huhtamaki has four manufacturing units in Russia, employing approximately 700 people and representing around 3%, approximately €108m ($116m), of the group’s total sales. The decision ends 30 years Huhtamaki’s of involvement in the Russian market.
In a press release, Huhtamaki said will maintain its operations in Russia during a transitional period while a buyer is sought.
Huhtamaki’s move to abandon its Russian business comes as other international food & beverage brands, including Starbucks
, McDonald’s, KFC, Coca-Cola, and Pepsi have paused operations in the country.
Headquartered in Espoo, Finland, Huhtamaki has operations at 114 locations in 38 countries around the world and employs around 19,600 staff. The company posted revenues of €3.6bn
($4.7bn) in 2021, an 8% rise on the year previous, with operating profit increasing 12% to €265m ($300m).