Paulig, an international food and beverage company, has sold its business in Russia, following a previous decision to withdraw from the Russian market.
The agreement provides for the sale of a stake in Paulig Rus LLC to private investor Vikas Soy. Thus, Paulig will have a new owner. The activity in Russia includes a roasting in Tver, approximately 170 km from Moscow. Paulig’s 200 employees will continue to work for the new owner. Paulig did not include brands and recipes in the deal. The amount of the transaction was not disclosed.
“Due to the Russian attack on Ukraine and the changing geopolitical situation, we have decided that continuing business in Russia is no longer a responsible step and have started the process of withdrawing the funds. Account considering our employees. Considering local laws, customers and employees, selling the business was the best outcome,” acknowledged Rolf Ladau, CEO of Paulig.
In the coming months, the Paulig brand will gradually stop working in Russia. Deliveries of green coffee from Paulig to the new owner will continue for a transitional period not exceeding three months.
In 2021, Russia accounted for less than 5% of the company’s total revenue, so exiting the Russian market has no significant impact on Paulig’s future.