Thursday, June 15, 2023

Since the beginning of the war, we have condemned this brutal aggression against Ukraine. Our thoughts remain with all those around the world with family, friends, and loved ones who have been impacted. We are constantly supporting our colleagues in Ukraine and have invested in repairing and rebuilding our local manufacturing facilities which have now returned to operations. To help the Ukrainian people, we have continued to increase our now $15 million commitment via the Mondelēz International Foundation to support the country, Ukrainian citizens as well as refugees, with cash and in-kind contributions.

There are no easy decisions, but, like most other global food and beverage companies, we are continuing to provide food during these challenging times, focusing our operations in Russia on affordable, shelf-stable products that are daily staples for ordinary people.

If we suspended our full operations, we would risk turning over our full operations to another party who could use the full proceeds for their own interests. It would mean cutting off part of the food supply for many families who have no say in the war. It would also create great uncertainty for our ~3,000 colleagues and more than 10,000 farmers who depend on us.

We have scaled down our activities, discontinuing new capital investments, new product launches and our advertising media spending in Russia. As a result of these actions, we are selling significantly less products as our sales are now declining. This year, our overall volumes have declined double digits and both our import volumes and market share have significantly decreased.

We’re continuing to reduce our activities and expect further volume and sales declines as we work to make our Russia operations self-sufficient. We plan to have the Russia business stand-alone with a self-sufficient supply chain before the end of the year.