CHICAGO — Mondelez International, parent company to bakery brands such as OREO and Clif Bar, has announced plans to scale back its operations in Russia and make it a stand-alone business by the end of 2023.
The company has discontinued new capital investments, product launches and advertising media spend in the country after facing a growing corporate boycott in the Nordic region over its presence in Russia. The company chose to begin scaling back operations vs. suspending them to minimize the impact the move will have on about 3,000 employees, over 10,000 farmers and the food supply in the region.
“There are no easy decisions, but, like most other global food and beverage companies, we are continuing to provide food during these challenging times, focusing our operations in Russia on affordable, shelf-stable products that are daily staples for ordinary people,” the company said in a statement.
“As a result of these actions, we are selling significantly less products as our sales are now declining,” Mondelez said. “This year, our overall volumes have declined double digits and both our import volumes and market share have significantly decreased.”
The company will continue to reduce activities and anticipates more volume and sales declines as it works to make Mondelez’s Russian operations stand-alone with a self-sufficient supply chain before the end of the year.
