30 June 2023

After Russia’s 2022 invasion of Ukraine, alcohol manufacturer Bacardi International announced that it would cease exporting its alcoholic drink range to Russia and would freeze investment and promotion programs. However, the pledge to halt supplies disappeared from the press release soon after and, over the past year, the profits enjoyed by Bacardi’s Russian outfit have tripled...

Bacardi International posted a statement on its website in March last year condemning Russia’s attack on Ukraine. The company promised to donate $1 million to the Red Cross and the Mercy Corps, while also halting all exports to Russia and freezing investments and advertising. After this promise was widely reported in the international press, the pledge to halt sales and marketing disappeared from the text of the statement (however, they can still be found in archive versions of the webpage with the announcement).

Instead, over the course of the last year, Bacardi's Russian subsidiary — Bacardi Rus — has enjoyed a financial bonanza. Reports on Russia’s Federal Tax Service website show how, compared with 2021, the fixed assets held by Bacardi Rus in 2022 increased in value from from 57 million rubles to 850 million rubles. The firm’s revenue ticked up from 30.1 billion rubles to 32.6 billion rubles and net profits tripled to almost 4.7 billion rubles...

Bacardi is currently exporting its products to Russia via its own subsidiary. Since Russian tanks were ordered over the border into Ukraine, Bacardi Rus has been granted four bills of entry, which guarantee that its products meet the required standards to clear customs. These bills of entry have long validity periods, which means that multiple consignments can be delivered before they need to be renewed. For example, on March 20, the company obtained an EAEU declaration for Martini Bianco Special Edition. This was valid for five years, allowing imports of vermouth until March 19, 2028...