Mondelez Explains Stance on Russian Operations
Dirk Van de Put, the chief executive of Mondelez International, the company behind Cadbury chocolate, has publicly defended the firm's choice to continue its business activities in Russia following the 2022 invasion of Ukraine. While admitting discomfort with the fact that taxes paid in Russia contribute to the war effort, Van de Put maintained that remaining in the country was the "right decision" for the company.
Many Western corporations, including fast-food giant McDonald's, opted to withdraw from Russia after the full-scale assault on Ukraine commenced. Mondelez, however, chose a different path, ceasing new investments and suspending advertising in its Russian division, but not fully exiting the market.
Reasons for Remaining in Russia
In an interview as part of the BBC's Big Boss Interview series, Van de Put articulated his perspective: "I think over time you try to be neutral in the whole conflict. We're not trying to take any side." He expressed concern that a complete withdrawal could jeopardize thousands of jobs and risk the Russian government seizing control of Mondelez's local operations. He stated, "They would have confiscated our plant. It would have probably given them a much bigger source of income, keep on selling our products to fund the war."
Since the conflict began, Mondelez's Russian operations have generated annual sales between $1 billion and $1.4 billion. This continued presence has drawn criticism, with over 70 UK Members of Parliament signing a letter urging Mondelez to sever ties with Russia. Alex Sobel, chair of the All-Party Parliamentary Group on Ukraine, argued that operating in a nation responsible for civilian deaths and child abductions cannot be justified as "business as usual."
Commitment to Ukraine
Despite the challenges in Russia, Mondelez, which also produces products like Philadelphia cream cheese and Toblerone, remains committed to its operations in Ukraine. The company runs two manufacturing plants in the country, one near the Russian border in Trostyanets and another close to Kyiv in Vyshhorod. Van de Put noted that one plant has been hit twice during the conflict and subsequently rebuilt, costing tens of millions of dollars.
He emphasized the company's dedication to its Ukrainian employees, stating that salaries were doubled at the start of the conflict, and no staff have been laid off. "We're committed there but for the people that work there every day there's danger," he added, referencing a recent incident where an office building in Ukraine was struck, though all employees were safe.
Source: Cadbury chocolate-owner Mondelez defends staying in Russia