Mondelez defends itself against criticism of Russian business
Published: Wednesday, Mar 27th 2024, 12:40
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US food giant Mondelez, which owns brands such as Milka, Oreo and Tuc, is defending itself against criticism of its operations in Russia. "There are no easy decisions, but like most other global food and beverage companies, we continue to provide food in these difficult times," a spokeswoman for the company said on Wednesday.
"If we were to cease operations completely, we would run the risk of handing over our entire business to another group, which could use all the proceeds for its own interests." This would have the effect of cutting off part of the food supply for many families. Mondelez also justifies the move with reference to the approximately 3,000 employees in Russia.
The company was responding to a campaign by Vitsche, a Ukrainian organization based in Berlin. This week, the organization sent a letter to the German retailers Rewe and Edeka. The letter called on the supermarket chains to stop selling Mondelez products until the company withdraws from Russia.
"International companies that continue to operate in Russia are financing and prolonging the war against Ukraine," the letter states. The organization accuses Mondelez of not having scaled back its Russian business despite public announcements. Redaktionsnetzwerk Deutschland had previously reported on the letter.
Various adjustments
Mondelez refutes the accusations. "We have reduced our activities, stopped new capital investments, the launch of new products and our spending on advertising in Russia. These measures have resulted in us selling significantly fewer products.
We will continue to reduce our activities," said a spokeswoman. "Since the beginning of the war, we have condemned this brutal aggression against Ukraine." Mondelez does not provide company figures on its Russian business.
When asked by DPA, both retailers stated that they would no longer sell food produced in Russia. According to Mondelez, the products sold in Russia are not exported, but are exclusively produced and distributed locally.
The company has already been criticized elsewhere for its business in Russia. For example, the Swedish Football Association has suspended its collaboration with Mondelez since June 2023. In addition, the Ukrainian anti-corruption authority has blacklisted the company.
Nestlé is also on this list. The Swiss Mondelez competitor has also been repeatedly criticized by various parties for continuing to operate in Russia.
According to Nestlé, it has drastically reduced its product portfolio in Russia and "stopped all non-essential imports and exports to and from Russia". In addition, Nestlé now only produces essential goods in Russia, i.e. staple foods.
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