OPINION: Mondelez Faces Consumer Backlash Over Continued Russia Business

Mondelez International, the parent company of popular brands such as Milka, Oreo, Ritz Crackers and Philadelphia cream cheese, is facing growing criticism for its decision to continue business operations in Russia, despite Moscow’s war on Ukraine. A survey conducted by PissedConsumer reveals that nearly 90% of respondents were unaware that Mondelez pays taxes in Russia, effectively contributing to the country’s wartime economy.

Most importantly, the findings reveal that over 77% of consumers would stop buying Mondelez products upon learning of the company’s ongoing business in Russia. With global condemnation and an increasingly stringent sanctions regime, 71% of respondents believe Mondelez should fully exit the Russian market as long as its invasion and occupation of Ukraine persist.

Mondelez’s business presence in Russia is irreconcilable with the company’s declared ethical stance, as it continues to generate revenue and contribute to Russia’s fully militarized economy.

The survey results point to a rising demand for corporate accountability, with consumers increasingly expecting companies to align with moral obligations rather than pursue profits in conflict-affected regions. For Mondelez, the decision to stay in Russia carries significant reputational and material risks as the war continues. The most significant of such exposures is the risk of asset expropriation by the Kremlin, similar to what has happened in the cases of Denmark’s brewer Carlsberg and France’s yogurt maker Danone.

Other Topics of Interest

EBRD, Aon Launch War Risk Insurance to Cover Ukraine’s Domestic Cargo

EBRD wants to create insurance protection for domestic cargo, motor vehicle damage, and railway rolling stock since the internal financial market does not cover these categories.

Another less known risk is the one of complicity in Russia’s growing number of war crimes as all companies operating in Russia are obliged to facilitate conscription of eligible personnel and provide material resources deemed necessary by the state for its ongoing war against Ukraine.

Earlier this year, the company’s CEO, Dirk van De Put, has stated that Mondelez’s investors “do not morally care” about the firm’s continued business operations in Russia, which led to an outcry from a number of Mondelez investors who fully grasp the risks of continued business operations in conflicted-affected areas.

As Ukraine approaches 1,000 days since the start of the full-scale invasion, Mondelez is about to celebrate its “Purpose Day” on Oct. 1, intended to raise employee pride in its values and mission. This triggers outrage as the American snacking giant continues to operate its three factories and generate profit and corporate taxes in Russia, a country ruled by internationally wanted war criminals. Its Purpose Day is a perfect occasion for Mondelez employees – especially in the region of Eastern and Central Europe – to remind its CEO, the Board of Directors and regional leadership about the company’s responsibility to do “what’s right,” which was stated in the initial employee petition that gathered over 1,300 signatures globally. Without such internal pressure, the company is not only failing in its risk management function, but is also doomed to remain on the wrong side of history.

The views expressed in this opinion article are the author’s and not necessarily those of Kyiv Post.