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A worker removes imperfect Oreo biscuits during control checks on the production line at the Trostyanets confectionery plant, operated by Mondelez International Inc., in Trostyanets, Ukraine. |
Mondelez has recommenced the production of its renowned Oreo cookies in Ukraine, following the reconstruction of its facility in Trostyanets, which suffered significant damage during the Russian invasion approximately two years ago.
The Trostyanets plant, now fully refurbished, initially reopened last year to focus on chocolate production, as stated in a company release.
While Mondelez clarified that the Oreo cookies and other confectionaries manufactured at the Ukrainian facility are not being shipped to neighboring Russia, it maintains three operational factories within Russia, despite facing criticism and calls for cessation from various quarters, including employees, activists, and investors.
In a bid to ensure autonomy, Mondelez aims to establish a self-reliant supply chain for its Russian operations by the conclusion of 2023. Earlier this year, the company appointed new leadership for its European operations, including Russia.
Contrary to Mondelez's decision, competitors such as Nestle, the world's largest food company, continue to retail their products in Russia, unaffected by international sanctions targeting the food sector.
During the reconstruction phase of the Trostyanets plant, Mondelez resorted to importing Oreos to Ukraine, as disclosed by a source familiar with the company's strategies, who chose to remain anonymous due to media restrictions.
Aside from catering to the domestic Ukrainian market, products from the Trostyanets plant are also exported to Eurasian nations like Georgia and Kazakhstan, which were previously supplied by Mondelez's Russian facilities.
Asserting their commitment to supporting and rebuilding Ukraine, Mondelez emphasized its ongoing investment initiatives in the region.
Oreos, renowned for their chocolate wafers with vanilla cream filling, stand as one of Mondelez's flagship brands, generating approximately $4 billion in sales revenue last year, according to a LinkedIn post by CEO Dirk Van de Put. Additionally, Mondelez boasts other leading brands such as Milka and Cadbury chocolates, alongside a range of local-brand cookies and crackers.
Recent shareholder activism within Mondelez saw over 30% of shareholders backing a resolution urging the company to conduct an independent assessment of the risks associated with its operations in Russia, according to company filings.
Norges Bank, the 11th-largest shareholder of Mondelez according to LSEG's Eikon, publicly supported the proposal, emphasizing its willingness to advocate for shareholder interests when deemed necessary.
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