Nestlé stops selling a wide range of products in Russia
On March 23, Nestle, the world’s largest food and beverage company, headquartered in Switzerland, announced that it would stop selling a wide range of products in Russia, including KitKat chocolate bar and Nesquik milk drink mix. Nestle spokesman said affected products would include pet food and coffee, which account for the majority of sales in Russia, totaling $1.82 billion in 2021.
The Swiss company has stopped importing and exporting non-essential goods to Russia, stopped all advertising and investments in the country, and revealed that it will donate profits from Russia to Ukraine aid.
Even so, Nestle said it will continue to pay the salaries of about 7,000 of its employees in Russia. At the same time, the world’s largest F&B company also announced that it would stand with the people of Ukraine and its 5,800 employees in this country. However, the news made Nestle shares down 1.6% in the market.
Actions from other parties and companies
Nestle’s decision comes as Ukraine’s President, Volodymyr Zelenskiy, is criticizing the world’s largest food company for its continued presence in Russia. Zelenskiy said Nestle didn’t do enough to achieve the “Good Food, Good Life” slogan.
Before Wednesday’s move (March 23), Nestle was also denounced by Ukrainian politicians and the group “Anonymous”, an international network of activists and anonymous social hacker organizations. The organization has called for a boycott of Nestle products.
Like Nestle, Western companies operating in Russia are struggling to provide much-needed food and medicine while facing outside pressure to cut ties with Moscow. More than 400 companies have withdrawn from Russia since the country’s conflict with Ukraine broke out on February 24, leaving assets worth hundreds of billions of dollars.
Despite the above pressures, Nestle, PepsiCo, Unilever and P&G are continuing to supply basic hygiene and nutrition items in Russia such as milk and diapers. Then, also on March 23, the multinational corporation specializing in providing nutritious food and drinks based in France, Danone said that it will continue to produce dairy products and essential nutrition for children. newborns in Russia. However, the French company has suspended all other import and export activities and investments, including advertising, or promotions in the country. Danone also said it will not receive cash, dividends and profits from its business in Russia.