Global snack giant Mondelēz International has announced that it has scaled back operations in Russia and plans to make the business in the country a standalone operation with a self-sufficient supply chain by the end of 2023. The announcement follows a growing "corporate boycott" implemented against the brand by Northern European countries: in fact, there are now several companies in the region that have announced their intention to stop selling Mondelēz products as the multinational company continues to have a presence in Russia following the invasion of Ukraine.

In response, the company said it has halted new capital investments, product launches, and advertising media spending in Russia. "As a result of these actions -reads a statement- we are selling far fewer products and our sales are declining. This year, our overall volumes have declined by double digits, and both import volumes and market share have declined significantly". 

In addition, "we are continuing to downsize our operations and expect further declines in volumes and sales as we work to make our operations in Russia self-sufficient. We expect to make the Russian business self-sufficient with an independent supply chain by the end of the year", the note adds.

The company, which has brands such as Oreo, Toblerone and Cadbury in its portfolio among others, has a strong presence in Russia with local chocolate brands such as Marabou and Freia. A spokesperson for Mondelēz International said the company is "aware of the situation in the country" and is aware of the decision by some companies to take action against its brands. 

"We realize that this is a sensitive issue and we fully respect the opinions of those around us -said the Mondelez spokesperson, who prefers to remain anonymous-. However, we are disappointed that our brands were singled out for different treatment than others. We have made it clear that our brands are produced locally in Norway and Sweden and that no products sold in the Nordic countries are manufactured in Russia. In addition, we do not export to Russia any products manufactured in the Nordic countries". In addition, he says, "the company has always condemned this brutal war while helping to maintain supply chain continuity with our products". 

In a public statement released last Thursday, June 15, the company admitted that it continues to reduce its operations in Russia and that it expects volumes and sales to decline further as it works to make its Russian operations self-sufficient. "If we were to suspend all of our operations, we would risk ceding them to another entity that could use all the proceeds for its own interests -Mondelēz wrote in the statement made public in recent days-. It would mean -the company added, cutting off part of the food supply for many families who have no say in the war. It would also create great uncertainty for our approximately 3,000 colleagues and the more than 10,000 farmers who depend on us".