Mondelez Overhauls European Operations After Boycotts Over Russian Business

Exclusive Look at Internal Memos

Oreo cookie-maker Mondelez has implemented new management in its profitable Russian business this week, as revealed in internal company memos seen by Reuters. The move details a corporate overhaul in Europe and sheds light on the impacts of recent boycotts and shareholder pressures.

Pressure to Leave Russia

After facing months of boycotts and pressure from stakeholders to exit Russia, Mondelez ceased advertising in the country but has not completely disengaged from the region. Despite investor pressure and boycotts, the company continues to operate three factories in Russia and sell products like Milka chocolate.

Attempted Workaround

In response to the appointment of a new general manager to lead its Russia business, corporate governance expert Nell Minow condemned the move as an “attempted workaround” that lacks significance. Despite company claims of standing up local business to operate more independently, questions and negative scrutiny persist over Mondelez’s Russia operations.

Global Outlook on Russia

Following the trend of global brands leaving Russia post-invasion of Ukraine, Mondelez’s competitors have also made strategic decisions to remain in the market. However, the company labels the war in Ukraine as a risk to its operations, acknowledging the potential repercussions on its business.

Strategic Business Decisions

Despite criticism and mounting pressures, Mondelez remains steadfast in its Russia business, emphasizing the role of providing “daily staples for ordinary people.” The company has faced challenges in the European market, particularly over price hikes, and continues to navigate internal and external pressures on its operations.

Profitability Amidst Challenges

However, Mondelez’s Russia business remains more profitable than ever, according to the company’s recent annual report. Despite the ongoing controversy, the company has made strategic decisions to adapt to changing market dynamics and geopolitical challenges.