Espreso. Global

Majority of global brands have not left Russian market 

26 August, 2023 Saturday
19:27

Among food giants working “on two fronts” are such global companies as Mondelez International, Unilever and Bacardi Limited

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Mondelez International is known in Ukraine for such brands as Milka, Korona, Oreo, TUC, Belvita, Milka Choco bakery; Barney Bear cakes; Lux chips, Dirol gum and Halls lollipops.

Initially, the company promised to cut all non-essential activities in Russia, stop all new investments and suspend advertising spending. But later it announced: "We continue to consolidate our Ukrainian and Russian subsidiaries."

In Q1 2022, Ukraine generated 0.3% and Russia 2.4% of the company's net income. During Q1 2023, Ukraine contributed 0.4% and Russia 2.8% of revenue.

The company made a simple arithmetic calculation and decided that losing the Russian market means losing more money.

Next. The Unilever company. It is known for such brands as Dove, Axe, TRESemmé, Clear and other hygiene products. It has also promised to suspend all imports and exports to and from Russia, to cancel all advertising expenditures, and not to make any profit from its presence in Russia.

However, as we can see, in 2023, the company did not fulfil its promises, as its local enterprise in Russia, Unilever Russia LLC, generated RUB 84.9 billion in 2022.

In addition, in 2022, the company's profit increased to RUB 34.5 billion. This means that the company has actually reinvested its profits, which is equal to the investment of new capital in the country.

In addition, the company will have to pay tax and thus support the Russian military machine with money.

However, on March 16, 2023, Unilever announced that it would invest 20 million euros in a new production facility in the Kyiv region. Construction is scheduled to begin this year, with the expected opening of the factory in 2024.

The new factory will produce personal care products, shampoos and shower gels, such as Dove, Axe, TRESemmé, Clear.

However, 20 million euros is only 2.5% of the amount the company generated in Russia in 2022.

And about the "booze". Bacardi Limited also announced that it was stopping exports to Russia after the start of Russia's invasion of Ukraine last year. However, just like the previous companies, it continues to supply alcohol and bottles whiskey at its Russian plant.

And the profit of the company's Russian subsidiary, Bacardi Rus, tripled in 2022, from 1.5 billion to almost 4.7 billion rubles. According to recent reports, the company continues to do business in Russia and is actively looking for new employees there.

On August 7, 2023, the company announced that it was suspending its advertising investments in Russia. It donates $1 million to the Red Cross and Mercy Corps, but for some reason in Moscow.

The National Agency on Corruption Prevention has added Mondelez, Unilever and Bacardi to the list of "International Sponsors of War".



 
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