Mondelez has resumed production of Oreo cookies in Ukraine after its plant in Trostyanets was badly damaged during Russia’s invasion about two years ago. The plant is now fully rebuilt and also produces other chocolates, but the products are not being exported to Russia. Mondelez has three factories in Russia and is working towards making its business there self-sufficient by the end of 2023.
Despite calls for companies to stop doing business in Russia, Mondelez continues to sell its products there, as do its competitors like Nestle. Food is not subject to international sanctions, so companies are able to continue operating in Russia. Mondelez has appointed new leadership in Russia and Europe in an effort to make the Russian business stand-alone.
While the Trostyanets plant was being repaired, Mondelez imported Oreos to Ukraine to continue meeting demand. The products made at the plant are also exported to countries in the Eurasian region and sold in the domestic Ukrainian market. The company is increasing its investments to support and rebuild Ukraine after the conflict with Russia.
Oreos are one of Mondelez’s biggest brands, generating about $4 billion in sales revenue last year. The company also produces other top brands like Milka and Cadbury chocolates, as well as local-brand cookies and crackers. Shareholders have raised concerns about the risks of continuing to do business in Russia, with over 30% backing a resolution calling for an independent study of the situation.
Norges Bank, Mondelez’s 11th-largest shareholder, supported the proposal for further study of the risks of doing business in Russia. The fund disclosed that they will consider supporting shareholder proposals when a company does not meet their needs as a financial investor. Mondelez remains committed to supporting and rebuilding Ukraine while continuing to operate in Russia and other markets.
