Mondelez is facing a boycott in Scandinavia due to its activities in Russia
The manufacturer of Oreo, Mondelez is facing a boycott in Scandinavia due to its activities in Russia. Scandinavian entrepreneurs are refusing to cooperate with the American multinational company Mondelez International, which produces confectionery and food products, because of its refusal to cease operations in Russia.
Reuters reported this.
According to the agency, airlines SAS and Norwegian Air, railway group SJ, hotel chain Strawberry, retail chain Elkjop, transport group Fjord Line, and the Norwegian Football Association have already refused to sell Mondelez products. Scandinavian companies stated that their decision to stop selling Mondelez products is based on the decision of the National Anti-Corruption Bureau of Ukraine to include the snack producer in the list of sponsors of terrorism.
Coop Norge, the second-largest grocery chain in Norway, stated that it would seek advice from the Norwegian government before making any decisions. Meanwhile, Mondelez stated that such decisions should be based on official sanctions imposed by Western and other countries. The company claims to have "limited" operations in Russia and to have ceased investments and advertising in the country.
Mondelez mentioned in its statement that it plans to meet with Norwegian officials to explain its position and assured that it does not sell Russian-made products in Norway. Meanwhile, the Norwegian Ministry of Foreign Affairs stated that it plans to meet with both sides of the boycott but did not propose a solution to the issue.
Mondelez is a global snack and chocolate manufacturer with brands such as Oreo, Toblerone, and dozens of others. It holds a significant share of the market in Norway and Sweden through its local chocolate manufacturers, Freia and Marabou.
While some Western companies sold their Russian assets after Moscow's invasion of Ukraine last year, Mondelez decided to stay despite protests from its employees in other countries.
As reported, at the end of March, the National Anti-Corruption Bureau of Ukraine included Mondelez International in the list of international sponsors of war, explaining this decision by the fact that Mondelez not only continues to operate in the Russian market but also effectively promotes its products in retail chains and introduces new products to the market.
The company is a leader in the Russian confectionery market in categories such as chocolate, chocolate candies, and biscuits, and holds the second position in the chewing gum and candy category.
In terms of the results of the 2022 war, the profit of Mondelez International's Russian branch amounted to $339 million (a 303% increase compared to the previous year), and revenue exceeded $1 billion (a 38% increase compared to the previous year). The company contributed over $61 million in taxes to the aggressor's budget.
Mondelez International is one of the world's largest snack and confectionery producers, operating in over 160 countries. Mondelez's business in Ukraine is represented by Mondelez Ukraine PJSC, which includes the Trostianets Confectionery Factory, which suffered significant damage due to the Russian invasion, and the subsidiary company Chipsy Lux LLC.