Manufacturer of Milka chocolate and Oreo classifies information about income in Russia – B4Ukraine

American company Mondelez International, the manufacturer of Oreo, Milka, Toblerone, Barny, Tuc and other chocolates and biscuits, has decided not to make financial reports of its Russian business for 2023 public.

Source: the B4Ukraine coalition

"The decision not to reveal the information (like Nestle and Mars do) demonstrates an attempt of the giants of consumer products to prevent a further reputational collapse connected with their refusal to exit the market of the aggressor state," B4Ukraine stated.

The snack foods giant Mondelez International promised to make its business in Russia "autonomous with a self-sufficient supply chain" by the end of 2023.

"Despite the promises to reduce its activity in Russia and our numerous attempts to engage the management of the company in dialogue, Mondelez keeps extending its Russian business, some indicators show," B4Ukraine revealed.

For instance, the firm sold 9,800 tonnes of the Milka chocolate in Russian in the first quarter of 2024 alone which is six times more than forecasted.

A Russian affiliate and its employees also remain connected to the rest of Mondelez.

Reuters reported that the Russian affiliate of Mondelez still used the company's enterprise resource planning (ERP) system, a central planning tool. The source added that Russian employees who worked for the Russian business still attend work meetings with the employees from other regions.

Despite the accounting being classified, the Kyiv School of Economy (KSE) estimated that the income of Mondelez in Russia in 2023 was about US$1.4. billion, and the taxes paid to the Kremlin were valued at US$62 million.

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