Oreo-maker faces backlash over Russia business

12 Jun, 2023 13:21 / Updated 2 years ago
Mondelez International opted to keep operating in the sanctions-hit nation

One of the world’s biggest snack makers, Mondelez International, is facing a widespread corporate boycott in the Nordic region, as the company has refused to join the massive exodus of international businesses from Russia, Reuters reported on Monday.

Airlines SAS and Norwegian Air, railway group SJ, hotel chain Strawberry, retailer Elkjop, shipping group Fjord Line and the Norwegian Football Association have reportedly joined the campaign, having announced plans to stop selling products made by Mondelez.

The US multinational, which owns brands including Oreo, Mars, Alpen Gold, Milka, Toblerone, Barny, Halls, and Tuc, enjoys a strong presence in Norway and Sweden via Freia and Marabou, the local manufacturers of chocolate.

According to the Nordic companies, the latest decision to stop selling Mondelez products was based on an announcement by the Ukrainian National Corruption Prevention Agency (NCPA) to blacklist the snack maker and other groups.

The watchdog labeled Mondelez an enemy of Ukraine in May, calling the company “international sponsor of war” due to its decision to stay in Russia.

Reuters reported that Norway’s second-biggest food retailer Coop Norge announced plans to seek advice from the Norwegian government before making any decisions.

Meanwhile, Mondelez will seek to meet with relevant government ministries to explain its position, according to the company’s statement seen by the agency. The snack maker added that it never sold any Russian-made products in Norway.

The multinational also stressed that official policy should be based on formal sanctions imposed on Russia by Western nations and their allies, and any guidelines should be based on objective criteria that treat companies equally.

“Mondelez International complies with all political decisions and sanctions and will continue to consider necessary adjustments to operations in order to ensure full compliance,” the company said, adding that it maintained “limited” activity in the sanction-hit country, having halted investment and advertising.

Headquartered in Chicago, Mondelez is among the largest foreign corporate majors still operating in Russia. The US company is the Russian market leader in chocolate, sweets, and biscuits and is also ranked second in the chewing gum and lollipops categories. In 2022 alone, the firm’s Russian subsidiary paid more than $61 million in taxes to the Russian budget, according to the NCPA. Mondelez has three large production facilities in the country, employing some 3,200 people.

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