Mondelez Adjusts Russia Strategy Following Criticism

3/27/2024, 6:00 PM

Mondelez (Milka, Oreo, Tuc) Under Fire: US Food Giant Defiantly Resists Criticism Over Its Russian Business Deals.

Eulerpool News Mar 27, 2024, 6:00 PM

The American Food Giant Mondelez, Known for Brands Like Milka, Oreo, and Tuc, Faces Accusations of Continuing Its Business in Russia Despite the War in Ukraine

The company emphasizes that a complete cessation of activities in Russia would not only lead to the loss of business to competitors who might use the revenue for their own purposes but also jeopardize the food supply of many families. Mondelez points to its approximately 3,000 employees in Russia and explains that, like many other global food and beverage companies, it continues to provide food during these difficult times.

The debate reignited when Vitsche, a Ukrainian organisation based in Berlin, addressed a letter to the supermarket chains Rewe and Edeka, demanding that the products of Mondelez no longer be sold until the company ceases its activities in Russia. Mondelez responds that it has already reduced operations and stopped investments and advertising spending in Russia, resulting in significantly lower product sales. The company emphasizes having condemned the aggression against Ukraine since the start of the war.

Rewe and Edeka responded cautiously to Vitsche's demands. While Rewe states that it imposed a boycott on food products produced in Russia immediately after the war began, Edeka makes it clear that it has not ordered any products made in Russia since the war started. Mondelez itself claims that the products sold in Russia are exclusively locally produced and distributed.

The discussion about the business activities of international companies in Russia is not new. Other German companies such as Metro and Ritter Sport continue their operations in Russia. The Mondelez stock showed a slight increase in NASDAQ trading, at times 0.56 percent higher at 70.01 US dollars.

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