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Paulig completes the sale of its business in Russia

The Finnish coffee, beverage and food supplier has completed the sale of its business in Russia, stating that trading in the country is ‘no longer viable’ following the ongoing invasion of Ukraine

Paulig has completed the sale of its business in Russia amid the country’s ongoing invasion of Ukraine | Photo credit: Paulig



Paulig has completed the sale of its business in Russia amid the country’s ongoing invasion of Ukraine. Paulig Rus LLC, which includes of a coffee roastery located around 170km from Moscow in Tver and 200 employees, was transferred to private investor, Mr Vikas Soi, for an undisclosed sum.

In a press release, Paulig said its business in Russia accounted for around 5% of its total revenues, adding that the sale did not include any Paulig brands or product recipes.

Following the sale, the Paulig brand will be phased out in Russia, with green coffee supplies from Paulig to the new owner continuing for a transition period of up to three months.

“Due to Russia’s attack on Ukraine and changes in geopolitical situation, we concluded that continuing business in Russia was no longer responsible nor viable and initiated a withdrawal process. Considering our employees, customers and local legislation, the sale of the business was the best solution for the exit”, says Rolf Ladau, CEO of Paulig.

Nordic countries account for 54% of Paulig revenue, followed by continental Europe (28%), the Baltics (6%) and the UK (5%).

According to the New York Times, almost 1,000 companies have publicly announced that they have voluntarily curtailed operations in Russia following the country’s invasion of Ukraine to some degree beyond the bare minimum legally required by international sanctions. Paulig joins a growing number of international coffee companies that have paused or divested their operations.

In March, Starbucks suspended all business in Russia, where it has 130 licensed stores, whilst last month Finnish coffee cup and packaging giant Huhtamaki began the process of selling its Russian interests as a result of the war in Ukraine making long-term growth in the country ‘unviable’.

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