Bacardi Breaks Pledge to Halt Spirit Exports to Russia, Sees Profits Triple in Region Says New Report

(Photo:
Anders Nord/Unsplash)

When Russia invaded Ukraine in early 2022, many spirit companies were quick to promise to stop exports to Russia. However, after numerous reports, it appears Bacardi and other major alcohol companies may have exaggerated their commitment to halt trade. A new report claims Bacardi has tripled its profits in the region. 

Back in March 2022, Bacardi International released a statement that condemned Vladimir Putin’s decision to attack Ukraine.

The statement read, “At Bacardi Limited, our priority is to ensure the safety and wellbeing of our people, especially those directly affected by the ongoing war in Ukraine. We are supporting our people in Ukraine with resources and services necessary during this time of great need.”

As part of the spirit giant’s show of support, it also committed $1 million to Red Cross and Mercy Corps. 

The original statement also said, “In addition, we paused exports to Russia and froze advertising investments in the market.”

Since then the current statement, no longer mentions the pause on exports and advertising. Presumably, the pause implied until the invasion of Ukraine ended but this doesn’t appear to be the case. 

According to The Bell, Bacardi Rus has seen its net profit nearly tripled to about $53 million since the invasion began. Bacardi reportedly has used its subsidiary to continue to export its products to Russia, while Bacardi Rus is said to have registered 37 new products. The increase in profits may have to do with a lack of competitors since several big spirits brands have made efforts to halt business with the country. 

The big three of the spirits industry, Bacardi, Pernod Ricard and Diageo all made announcements to stop exports to Russia soon after the invasion of Ukraine started. Despite this, Pernod Ricard has come under fire several times after people discovered exports had resumed at some point or possibly never stopped. 

In April, the Pernod Ricard-owned spirits brand Absolut was pressured into stopping exports after facing harsh criticism. The company also faced calls to boycott Jameson Whiskey which was also still being exported to Russia. Since then, the company is reportedly working to halt all exports of its many brands including Havana Club.

It is unclear from The Bell’s report to what degree Bacardi Limited has continued to export products to Russia or its involvement in Bacardi Rus’s apparent success. However, people’s reaction to Pernod Ricard showed even major international companies are willing to listen to public outcry when it comes to the politics surrounding the invasion of Ukraine. Bacardi may well be forced to reckon with similar backlash in the future if commitments are not made to end exports and investments in Russia. 

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