September 21, 2023

MOSCOW — Mondelez Worldwide, Inc. plans to have its enterprise in Russia working as a stand-alone firm with a self-sufficient provide chain earlier than the top of the yr.

The corporate has been cutting down its actions, discontinuing new capital investments and new product launches, and lowering promoting spending in Russia. Consequently, Mondelez stated it’s promoting considerably fewer merchandise and gross sales are declining in Russia.

“This yr, our general volumes have declined double digits and each our import volumes and market share have considerably decreased,” the corporate stated. “We’re persevering with to cut back our actions and anticipate additional quantity and gross sales declines as we work to make our Russia operations self-sufficient.”

One of many firm’s fears, Mondelez stated, was that if it suspended full operations it might threat turning over its full operations to a different entity which will use the proceeds for their very own pursuits.

“It will imply slicing off a part of the meals provide for a lot of households who haven’t any say within the struggle,” Mondelez stated. “It will additionally create nice uncertainty for our (roughly) 3,000 colleagues and greater than 10,000 farmers who depend upon us.”

Mondelez has condemned the aggression towards Ukraine and has dedicated $15 million through the Mondelez Worldwide Basis to assist the nation, Ukrainian residents in addition to refugees, with money and in-kind contributions. However Mondelez additionally has confronted backlash over the previous month because of its continued presence in Russia, and several other firms within the Nordic area just lately introduced plans to cease promoting Mondelez merchandise.

Commenting on the backlash, Vinzenz Gruber, president of the corporate’s European operations, in a June 15 memo despatched to workers and obtained by Reuters, stated Mondelez was being “singled out and handled in another way from different friends regardless of the realities of the scenario.”

“In the event you look in most kitchen cabinets, you will note many merchandise from meals and beverage firms that haven’t exited Russia,” Mr. Gruber stated, with out mentioning any particular manufacturers.

Mondelez has a subsidiary and three amenities in Russia.

In December 2022, The Kellogg Co. divested its operations in Russiato a neighborhood Russian firm, Chernogolovka.