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Mondelēz to separate Russia operations following Nordic boycott
FoodBev Media

FoodBev Media

16 June 2023

Mondelēz to separate Russia operations following Nordic boycott

Global snack giant Mondelēz International has announced it will be scaling down operations in Russia, with aims to make its business in the country self-sufficient by the year-end. The announcement follows a growing corporate boycott in the Nordic region, with various companies announcing plans to stop selling Mondelēz products due to the company’s continued presence in Russia following Moscow’s invasion of Ukraine. Mondelēz’s snack portfolio includes Oreo, Toblerone and Cadbury among others. The company has a strong presence in the Nordic region, with local chocolate brands including Marabou and Freia. Earlier in the week, a spokesperson for Mondelēz International told FoodBev that the company was aware of the situation in the Nordics and the decision by some companies to take action against its brands. “We realise that this is a sensitive issue and fully respect the opinions of those around us. However, we are disappointed that our brands are being singled above others for different treatment,” the spokesperson commented. “We have been clear that our brands in question are produced locally across Norway and Sweden and that no products sold in the Nordics are manufactured in Russia. We also do not export any products produced in the Nordics to Russia.” The spokesperson added that Mondelēz has only maintained “limited operations” in Russia, discontinuing new capital investments and advertising, and has “always condemned this brutal war while helping to maintain the continuity of the supply chain with our products.” Now, in a public statement released yesterday (15 June 2023), the company said it is continuing to reduce its activities and expects further volume and sales decline as it works to make Russia operations self-sufficient. “If we suspended our full operations, we would risk turning over our full operations to another party who could use the full proceeds for their own interests,” Mondelēz wrote in its statement. “It would mean cutting off part of the food supply for many families who have no say in the war. It would also create great uncertainty for our 3,000 colleagues and more than 10,000 farmers who depend on us.” The company plans to have the Russia business stand-alone with a self-sufficient supply chain before the end of 2023.

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