Oreo and Milka producer reports highest ever profits in Russia – Reuters
The snack company Mondelēz, which is on the list of war sponsors compiled by the National Agency on Corruption Prevention (NACP), has reported "the highest ever" profits for its Russian branch of business.
Source: Reuters, citing Mondelēz documents it has seen.
Details: In a statement made in 2023, the company noted that its business in Russia provides "shelf-stable products that are daily staples for ordinary people" and that suspending operations "would mean cutting off part of the food supply for many families who have no say in the war."
The company also announced that it would stop investing in advertising and give full autonomy to its Russian subsidiary.
In addition, the company noted that "products sold in Russia are now produced and distributed locally, with no imports of finished goods from Europe into Russia or exports from Russia into Europe."
However, according to memos seen by Reuters, Mondelēz's Russian subsidiary has a new CEO who reports to a person who in turn reports to Mondelēz's president for Europe, Vince Gruber.
On 13 February, in a separate memo, Gruber announced that Alexei Blinov would become the new general manager in Russia. According to his LinkedIn profile, Blinov is Vice President Finance, Eastern Europe, at Mondelēz International in Moscow.
In its annual report published earlier this month, the company said its Russian business is more profitable than ever before.
The products are not subject to any international sanctions, so Mondelēz can continue its Russian business almost unhindered.
Background:
- In May 2023, the NACP added Mondelēz International, an American confectionery, food and beverage company, to the list of international sponsors of war.
- In June 2023, Mondelēz International faced a growing corporate boycott in Scandinavia due to its continued presence in Russia.
- In 2022, Mondelēz International’s Russian subsidiary posted a profit of US$339 million (up 303% year-on-year), with revenue of over US$1 billion (up 38% year-on-year). The company paid more than US$61 million in taxes to the budget of the aggressor country.
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