Mondelez, the Ukrainian snack maker, has resumed the production of Oreo cookies at its plant in Trostyanets, a small city in eastern Ukraine. The factory was significantly damaged during Russia’s invasion roughly two years ago. Mondelez announced that the plant is now fully rebuilt, having partially reopened last year to produce chocolates.
The company emphasized that Oreo cookies and other chocolates produced at the Ukrainian factory are not being exported to neighboring Russia. Mondelez operates three factories in Russia and continues to sell its cookies and snacks there despite calls for a boycott from employees, activists, and investors.
To mitigate the backlash, Mondelez stated that it would make its business in Russia “stand-alone” with a self-sufficient supply chain by the end of 2023. The company also appointed new leadership in Europe, including Russia, earlier this year.
Mondelez’s competitors, such as Nestle, continue to sell their products in Russia. During the period the Trostyanets plant was under repair, Mondelez imported Oreos into Ukraine. Now, the products made at the Trostyanets plant are being exported to Eurasian countries such as Georgia and Kazakhstan, in addition to being sold in Ukraine. Previously, plants in Russia helped supply these countries.
In a statement, Mondelez said, “We continue to increase our investments in supporting and rebuilding Ukraine.” The company also noted that there are no more exports from Russia into Europe.
Oreos, a significant brand for Mondelez, generated about $4 billion in sales revenue last year, according to a LinkedIn post by CEO Dirk Van de Put. Other top brands for Mondelez include Milka and Cadbury chocolates, as well as local-brand cookies and crackers.
Last week, over 30% of Mondelez’s shareholders supported a resolution calling for the company to conduct an independent study of the risks associated with continuing business in Russia. Norges Bank, Mondelez’s 11th-largest shareholder, backed the proposal, stating that when a company “does not meet our needs as a financial investor, we will consider supporting a well-founded shareholder proposal.”
