- Mondelez faces global backlash
- MPs criticize Cadbury’s Russia operations
- Calls for business ethics alignment
Members of Parliament have criticised the owner of Cadbury for continuing to distribute confectionery in Russia two years after the invasion of Ukraine.
Alex Sobel, a Labour Party member and co-chair of an all-party Ukraine group, has written to Dirk Van de Put, CEO of Mondelez, the American food conglomerate that acquired the beloved British chocolate brand Cadbury in 2010.
This follows Van de Put’s statement this week that investors have no ‘moral interest’ in whether or not companies continue to operate in Russia, and that no shareholder has pressured the company to withdraw following the invasion of Ukraine.
In 2023, Mondelez’s Russian division generated 2.8% of the company’s total worldwide revenues, down from 4% in 2022.
Sobel expresses “deep concern” in his letter regarding Mondelez’s actions.
Moreover, advocates argue that it is time for the American conglomerate to “drop the keys and leave” Russia, where it distributes several of its brands such as Oreo biscuits, Milka chocolate, and Belvita cereal.
Mondelez contends that the sale of Cadbury confectionery, including Dairy Milk bars, results from unauthorised distributors and imports.
It argues that a complete withdrawal would harm its operations, as it could potentially be taken over by the Kremlin.
Mondelez has faced significant backlash in various countries, including Scandinavia.
Prominent chocolate brands have faced boycotts from airlines and football clubs in Scandinavia and Norway, among others; even the Swedish royal family has distanced itself from one such brand.
Sobel says Mondelez’s actions “send a worrying message and show a lack of concern for the plight of those affected by the conflict.”
Furthermore, he advised, “While I understand the complexities of global business, I urge you to consider the broader implications: by continuing your operations and product sales in Russia, you compromise the principles of integrity and empathy that should guide business conduct.
“I strongly urge you to reconsider your stance on this matter and take decisive steps to align with the principles of human rights and social justice.”
These interventions follow revelations published last August in the Mail on Sunday. Reports said FTSE 100 firm Coca-Cola HBC refused to close Russian operations and started marketing a copycat cola.
Critics Slam Firms for Russia Profits
An attack has been launched on the British giant Unilever for selling ice desserts in the country.
Additionally, the establishment stocks products from Procter & Gamble, Mars, and Nestle, among others.
The chair of the Ukraine parliamentary group, Bob Seely, said, “I think any company doing business in Russia without justification should suffer reputational damage.” They are essentially supporting authoritarianism.
“Anyone making a profit in Russia is funding a killing machine that targets political opponents in Russia and commits atrocities in Ukraine.”
The charity Business4Ukraine stated, “A Mondelez bar is not as innocuous as it might seem.”
Corporate taxes paid by Western companies, including Mondelez, help expand Russia’s military capabilities. The time has come to hand back the keys and leave. Only in this way can Russia’s illegal and brutal war be defunded.
Mondelez claims that its Russian division is now “more independently operating.” But critics argue that the company continues to market and profit from products in Russia.
Mark Dixon of the Moral Ratings Agency said Russian companies were “feeding” Vladimir Putin’s regime, adding, “Everything is connected.”
“A Cadbury chocolate purchase in Coventry contributes to the organisation that funds Russia’s Kalibr missile launch against Kiev.”
Mondelez Navigates Ethical Quandary
Mondelez’s hostile takeover for £11.5 billion in 2010 cost thousands of jobs and moved some production overseas.
It operates three facilities in Russia, supporting a supply network of over 10,000 producers and employing 3,000 people.
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Ukraine included it in a blacklist of “International Sponsors of War” last year. MPs and activists assert that funds are being channelled to the Russian war chest through taxation.
Mondelez has stated that there are “no easy decisions,” and a complete withdrawal from Russia could place the company in the hands of the Kremlin.
“Since the start of the war, we have condemned the brutal aggression against Ukraine,” a spokesperson said. If we stopped operations, a third party may exploit the entire profit margin for themselves.
“It would also cut off part of the food supply for families with no say in the war.” It would also expose our 3,000 colleagues and over 10,000 producers who depend on us to extreme uncertainty.
