Mondelez International is an American snacking giant that has chosen to stay in Russia after the full-scale invasion of Ukraine. It owns such iconic brands as Oreo cookies, Ritz crackers, Philadelphia cream cheese, Cadbury, Milka, and Toblerone chocolates. The company is headquartered in Chicago and has its European HQ in Zurich, Switzerland.
In Russia, Mondelez operates 3 factories and employs about 3,000 people. The company earned $1.417 billion in Russia in 2023, with Mondelez paying over $62 million in profit taxes to the Russian government. The company’s profitability in Russia remains “above historical levels,” according to the company’s latest yearly filing.
Mondelez justifies its Russian presence on the basis of providing “essential goods” to the local population, with its CEO Dirk Van De Put publicly arguing biscuits could be an essential breakfast food.
In March 2022, following Russia’s full-scale invasion of Ukraine, Mondelez pledged to “scale back all non-essential activities” in Russia, while its employees urged leadership to “do what’s right” by pursuing “a complete suspension” of business activity in the aggressor state. The second petition, which fell on deaf ears, was signed by over 1,300 employees globally.
In May 2023, Ukraine’s National Agency on Corruption Prevention designated Mondelez an “International Sponsor of War” on the basis of its ongoing contribution to Russia’s wartime economy. This led to a B2B boycott of Mondelez’s products in Scandinavia as many businesses dropped Mondelez from its list of preferred suppliers, including SAS Airlines, Norwegian Air, IKEA, SJ, Strawberry hotels, as well as the Swedish Armed Forces, the Swedish Football Association and others.
At the start of 2024, the Swedish Royal House dropped Marabou chocolates (a well-known local brand owned by Mondelez) from the list of preferred suppliers. Subsequently, the company was forced to issue a statement announcing plans to turn its Russia business into a “self-sufficient” and “stand-alone” operation.
In February 2024, in his FT interview, Mondelez’s chief executive Dirk van de Put said investors did not “morally care” whether companies continued to do business in Russia, and that the company’s own shareholders had not pressured the chocolate maker to leave the country after its invasion of Ukraine. This statement led to public outcry from British MPs and also from Mondelez’s own investors including Wespath Benefits & Investments.
Despite promises to scale back its Russian business and multiple B4Ukraine’s attempts to engage the company’s leadership, Mondelez continues to expand its business by some measures, while reshuffling its leadership in Russia. The snacking giant sold 9,800 tonnes of Milka chocolates in just the first quarter of 2024 — six times more than the company’s forecast. One hundred tons of high-end Toblerone chocolate, made in Switzerland and Slovakia, were sold in Russia in the first four months of this year.
In May 2024, Mondelez’s investors rejected a resolution calling for additional reporting on the implementation of the company’s human rights policy in Russia and Ukraine. However, it is critical to note that over 30% of Mondelez investors voted in favor of additional reporting, including such large institutional investors as Norges Bank Investment Management (NBIM), the New York City Controller, KLP, AP4, AP7, and Storebrand Asset Management.
More recently, the company removed two public-facing statements that appeared on the company’s website. The first statement, made in March of 2022 just after Russia’s invasion of Ukraine, said Mondelez was “scaling back all non-essential activities” in Russia. Another one from June of 2023 said the company had “scaled down” activities in Russia, discontinued new capital investments, new product launches and spending on advertising in the country; it also said it would turn the Russia business into a “self-sufficient” and “stand-alone” operation. Reacting to this, some shareholders said they are frustrated by the company’s lack of transparency. A new shareholder proposal is likely to be filed this year calling for more visibility on the company’s business in conflict zones.
Throughout 2023 and 2024 there have been many public actions against Mondelez in Chicago led by the Illinois branch of the Ukrainian Congress Committee of America as well as by local activist groups in Germany, UK, Greece and Switzerland.
In December 2024, Buckingham Palace stripped Mondelez’s UK chocolate brand, Cadbury, of its royal warrant. Earlier, B4Ukraine wrote to the King, urging the revocation of Cadbury’s award due to its US parent company’s continued operations in Russia.
A survey conducted by a US-based consumer rating platform PissedConsumer.com reveals that nearly 90% of respondents were unaware that Mondelez pays taxes in Russia, effectively contributing to the country’s wartime economy. Most importantly, the findings reveal that over 77% of consumers would stop buying Mondelez products upon learning of the company’s ongoing business in Russia. With global condemnation and an increasingly stringent sanctions regime, 71% of respondents believe Mondelez should fully exit the Russian market as long as its invasion and occupation of Ukraine persist.
At a time of extreme difficulty for Ukraine in its pursuit of freedom and survival, not a single penny of corporate money should go to Russia’s militarized budget. It’s time to use all available leverage to ensure Mondelez fully withdraws from the Russian market until Ukraine’s independence and territorial integrity are restored.
• Petition
• Latest news
- Oreo-maker Mondelez’s apparent backtrack on Russia prompts transparency concern — Bloomberg
- Cadbury loses royal warrant after 170 years — BBC
- Cadbury’s ‘snack right’ slogan is hard to swallow when the company is a ‘sponsor of war’ — The Observer
- Ukrainian activists pressure Labour mayor over Cadbury-owner’s links to Russia — The Telegraph
- Mondelez faces consumer backlash over continued Russia business — Kyiv Post
- Milka in Russland: Der Rubel rollt trotz Ukraine-Krieg — RND
- Toblerone still sold in Russia even as Mondelez nixed imports — Reuters
- Cadbury founder’s descendant criticizes owner’s ‘disappointing’ stance on Russia — The Telegraph
- King urged to revoke royal warrants of Cadbury and Marmite-owner Unilever over Russia links — The Telegraph
- Chicago’s Mondelez has kept its ties with a warring Russia — Chicago Tribune
- Big investors back conflict area and child labor resolutions at Mondelez — Responsible Investor
- Milka and Oreo disappear from shelves at Rewe — RetailDetail
- Cadbury’s US owner has betrayed brand’s roots with Russian presence, says Andy Street — The Telegraph