Mondelez has resumed the production of Oreo cookies in Ukraine after its plant in Trostyanets was badly damaged during Russia’s invasion two years ago. The plant is now fully rebuilt and producing chocolates in addition to cookies. However, the products made at the Ukrainian factory are not being exported to neighboring Russia, despite Mondelez having three factories in Russia that continue to sell cookies and snacks despite calls for a boycott.
Mondelez plans to make its business in Russia “stand-alone” with a self-sufficient supply chain by the end of 2023, and has appointed new leadership in Europe including Russia. The company’s rivals, such as Nestle, are still selling their products in Russia as food does not fall under international sanctions. Mondelez has also increased its investments in supporting and rebuilding Ukraine, with products from the Trostyanets plant being exported to other Eurasian countries such as Georgia and Kazakhstan.
While the Trostyanets plant was being repaired, Mondelez imported Oreo cookies to Ukraine. The company’s products made in Ukraine are also sold in the domestic market as well as in neighboring countries. Mondelez’s top brands include Oreos, Milka, Cadbury chocolates, and local-brand cookies and crackers. The company hit about $4 billion in sales revenue last year, with a little over 30% of shareholders calling for an independent study of the risks of continuing to do business in Russia.
Norges Bank, one of Mondelez’s largest shareholders, supported the proposal for an independent study of the risks of doing business in Russia. The fund stated that if a company does not meet their needs as a financial investor, they will consider supporting a shareholder proposal. Mondelez has stated that there are no more exports from Russia into Europe, indicating a shift in their business strategy in the region. The company continues to invest in supporting and rebuilding Ukraine while maintaining its operations in Russia and other markets around the world.
