Beverage company Anheuser-Busch InBev (BUD) has lost control of its Russian joint venture, AB InBev Efes, after President Vladimir Putin handed it over to a local company. The brewer had planned to exit Russia by transferring ownership of the business to its Turkish partner, Anadolu Efes, a joint venture it first entered in 2018.
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AB InBev Efes was once the top player in Russia’s beer market with a 25% market share and 11 breweries that produced brands like Klinskoe and Spaten. However, the Russian beer market has struggled with declining demand and stricter regulations. In addition, after Russia invaded Ukraine in 2022, Anheuser-Busch InBev announced plans to leave the country, and Anadolu Efes was supposed to take over its Russian operations while AB InBev focused on its Ukrainian business.
Nevertheless, Russia’s seizure of AB InBev Efes is similar to actions against other multinational companies exiting the country. Indeed, Brewer Carlsberg (CABGY) and food giant Danone (DANOY) have also seen their Russian subsidiaries taken over by local entities under government control.
What Is the Future of BUD Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BUD stock based on one Buy, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 22% decline in its share price over the past year, the average BUD price target of $71.50 per share implies 43.43% upside potential.
