Companies Olvi continues to operate in Belarus to support Russia: “We are the largest employer in a small town,” says the CEO

Iisalmelainen The brewing and soft drink company Olvi has decided to keep its factory in Belarus in operation for the time being.

“We do not accept hostilities and we are subject to EU sanctions. However, we have more than 800 workers in the country, and we play an important role in the livelihoods of them and their families. We don’t want to cause them any more pain in a very difficult and frightening situation anyway. ”

This is how Olvi justified his decision on Thursday to a private individual who had asked why the company would continue to operate in Belarus.

Multi the rest of the company has withdrawn from Russia and Belarus in the past week and condemned the war in Ukraine initiated by Russia and supported by Belarus.

Among other things, Ikea announced on Thursday that it was withdrawing from Belarus and Russia, where it has a total of 15,000 jobs.

Would Olvi withdraw from Russia in this situation if you had more than 800 employees there, Olvi’s CEO Lasse Aho?

“Olvi has never considered going to Russia as a local manufacturer. I therefore do not want to consider whether we would act differently there. But the government makes decisions of this size, ”Aho replies.

Clearing says that Olvi ‘s own thinking about the continuity of operations is based on several ethical considerations and a number of financial reasons.

“We are the largest employer in a small town, and more than 800 workers would actually be hit on the streets in a situation where Belarus’s economy has weakened.”

“We don’t feel ethically right to lay off 840 employees. At the same time, it would be a message to employees in the six countries where Olvi operates. We would like to see further before such decisions are considered. ”

Aho says he understands the “pressure”.

“These are hugely difficult questions.”

He also stresses that all its international soft drink and brewing competitors will continue to operate in Belarus.

“And our partner Pepsi expects us to continue to operate.”

According to Aho, closing the brewery would also mean that it could never be reopened.

“It’s virtually impossible to shut down a brewery, and come back in six months. Even all the yeast stocks have been destroyed there. ”

Also financially, closing the Belarusian brewery would be difficult for Olvi. Investments of almost EUR 150 million will account for about one third of Olvi Group’s sales volume.

“If I speculate out loud, it would mean we’ll leave and everyone else will continue. Sacrificing our business. That is the situation at the moment. ”

According to Aho, when Olvi leaves, “in these uncertain times” there would be no guarantee that the brewery would remain owned by Olvi.

“This risk must be at least thoroughly assessed when making decisions.”

Olvin However, a comparison with many companies that left Russia or Belarus is not fair in all respects anyway.

For example, Stora Enso, which announced the closure of its operations in Russia, where it has approximately 1,500 employees, differs significantly from Olvi in ​​that Stora Enso’s Russia products are on the sanctions list.

Beverages and foodstuffs are not included in the sanctions list.

Ikean In this respect, the reason for leaving Russia and Belarus may also be due to the fact that deliveries of goods and the operation of stores may now slow down.

Listed on a stock exchange Olvi operates in Finland, Belarus and the Baltic countries.

Of its subsidiaries, A. Le Coq is the largest beverage producer in Estonia, and Lidskoe Pivo in Belarus is the second largest beverage producer in the country.

Olvi’s Latvian subsidiary Cesu Alus is also the country’s second largest beverage producer and Lithuania’s Volfas Engelman is Lithuania’s third largest brewery. In Denmark, Olvi has a Vestfyen brewery.