Bacardi has been listed as an “international sponsor of war” in Ukraine for its continued presence in Russia.
Ukraine’s National Agency for the Prevention of Corruption (NACP) has updated its list of “war sponsor” companies to include the Grey Goose vodka owner.
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The agency made several allegations against the spirits giant.
Bacardi had announced it would stop exporting to Russia and stop investing in advertising, but this part later disappeared from the company’s official statement, according to the report.
The Bermuda-headquartered company has continued to supply its products to Russia for “millions of dollars” and to “look for new employees by publishing job advertisements”, NACP wrote.
The exit of several international brand owners from the Russian alcohol market has reduced competition and created opportunities for those that remained.
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By GlobalData“Taking advantage of the situation”, as NACP wrote, the Russian division of the company, Bacardi Rus, imported goods worth $169m during the year of the war in Ukraine, the NACP report said.
According to data from the Federal Tax Service of the Russian Federation, the revenue of Bacardi Rus in 2022 increased by 8.5% to Rbs32.6bn ($332.7m), the NACP said. Net profit more than trebled to Rbs4.7bn, it added. Some $12m of income tax was paid to Russia’s state budget.
NACP wrote: “Thus, Bacardi Limited continues to pay significant taxes to the budget of Russia, support its economy and sponsor aggression against Ukraine.”
Bacardi wrote on its website it has “committed $1m to Red Cross and Mercy Corps to support humanitarian efforts on the ground” in Ukraine.
The company had not responded to a request for comment on the NACP statement at the time of writing.
Bacardi’s Russian business also imported $169m of products during the 12 months to June 30, according to an article in The Wall Street Journal. Products imported include Grey Goose vodka, Bombay Sapphire gin, Oakheart rum, Dewar’s Scotch whisky, Patrón tequila and Martini-branded vermouth.
Pernod Ricard recently stopped the export of its brands to Russia after bowing to international political pressure.
Speaking to Just Drinks, a spokesperson for Pernod Ricard confirmed this would mean the loss of around 300 job losses in Russia, as it wound down nearly all its operations there.
