Ukraine Declares Bacardi a ‘War Sponsor’ After the Spirit Company’s Profits Grow From Sales in Russia
(Photo: Vasil Korzh/Unsplash)
The Ukrainian government’s National Agency on Corruption Prevention announced the addition of Bacardi Limited to its list of international war sponsors today. The announcement comes after new financial reports indicating Barcardi’s increased profits in Russia, despite previously pledging to stop exports and investments.
Bacardi Limited is considered the largest privately held, family-owned spirits company in the world. In addition to its namesake rum, Bacardi owns more than 200 brands and labels including Grey Goose Vodka, Tequila Patrón, Dewar’s Scotch Whisky, Jay-Z’s D’USSÉ Cognac and Bombay Sapphire Dry Gin.
Like many other brands, when Russia invaded Ukraine, Bacardi pledged to halt exports and stop investments in advertising in the aggressor’s country. However, it appears this pledge may have been short-lived. The spirit giant’s branch, Bacardi Rus LLC, has reportedly imported $169 million worth of products during the 12 months leading up to June 30 based on customs data. The products imported included many of the major brands previously mentioned.
According to data from Russia’s federal tax agency obtained by Wall Street Journal, Bacardi Rus also reported an 8.5% rise in annual revenue equal to about $314 million for 2022.
The Ukrainian government argued that the exit from Russia by leading international brands has “reduced competition and created opportunities” for companies like Bacardi. As a result of Bacardi Limited’s continued business and increased profits, some of this money goes towards paying Russian taxes and arguably helps fund Vladimir Putin’s war in Ukraine.
Other companies like Pernod Ricard have come under fire for continuing to do business in Russia. People protested Absolut Vodka and threatened the brand with boycotts when it was discovered that exports to Russia didn’t stop.
As of the end of April 2023, Pernod Ricard has stopped all exports of its international brands to Russia.
“We will also cease the distribution of our portfolio in Russia, a process that we anticipate will take some months to complete,” stated Pernod Ricard. “We are assessing how to adapt our local organization in light of these decisions, while fully complying with all local legal regulations.”
Several other companies are in the midst of attempting to sell their companies’ stakes in Russia. Anheuser-Busch InBev and Heineken are reportedly among these companies.
Despite the global pressure many companies feel to stop associating with Russia, Bacardi seems to be flying under the radar on this matter.
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