The owner of Cadbury has come under fire from MPs for continuing to sell chocolate in Russia two years after the invasion of Ukraine.
Labour’s Alex Sobel, who co-chairs an all-party group in Ukraine, wrote to Dirk Van de Put, chief executive of US food giant Mondelez, which took over the beloved British chocolate brand Cadbury in 2010.
It comes after Van de Put said this week that investors do not “morally care” whether companies continue to do business in Russia, adding that no shareholders had pressured her to leave after the invasion of Ukraine.
Mondelez’s Russian business contributed 2.8 percent of its global revenue in 2023, up from 4 percent in 2022.
In the letter, Sobel says he is “deeply concerned” by Mondelez’s actions.
Putin: Mondelez, owner of Cadbury, says there are “no easy decisions” about continuing its business in Russia
And activists said it was time for it to “leave the keys and leave” Russia, where the US conglomerate sells several of its brands in Russia, including Milka chocolate, Belvita cereal and Oreo cookies.
Cadbury confectionery products are also sold, including Dairy Milk bars, although Mondelez claims this is due to unlicensed distributors and imports.
It argues that a complete exit would cause more harm than good, as its operations could fall into the hands of the Kremlin.
Mondelez has already faced backlash in other countries, including Scandinavia.
There were boycotts by airlines and football clubs in countries such as Norway and Sweden, and even the latter’s royal family turned its back on a popular chocolate brand.
Sobel said Mondelez’s actions send “a worrying message and suggest a disregard for the suffering of those affected by the conflict.”
He added: ‘I understand the complexities of operating in a global market, but I ask you to consider the broader impact: by continuing to operate and sell products in Russia, you risk undermining the values of integrity and compassion that should guide conduct. corporate.
“I urge you to re-evaluate your stance on this matter and take decisive action to align yourself with the principles of social justice and human rights.”
Chocolate block: Cadbury sweets including Dairy Milk bars are still sold in Russia
The interventions follow revelations in the Mail on Sunday last August that FTSE 100 giant Coca-Cola HBC refused to close factories in Russia and switched to selling a copycat local cola drink.
British giant Unilever has come under attack for selling ice cream in the country.
Other brands, including Mars, Nestlé and Procter & Gamble, also sell products there.
Bob Seely, who chairs Ukraine’s parliamentary group, said: “I think any company that does business in Russia without good reason should suffer reputational damage.” They are helping fascism, pure and simple.
“Anyone who makes profits in Russia is financing a war machine that is killing in Ukraine and assassinating political opponents in Russia.”
Charity Business4Ukraine said: ‘A Mondelez bar is not as innocent as you might think.
‘Corporate taxes paid by Western companies like Mondelez allow further militarization of Russia. It’s time to leave the keys and go. “It is the only way to defund Russia’s brutal and illegal war.”
Mondelez says its Russian arm now operates “more independently,” but critics say it still sells products in Russia and profits from them.
Shrill: Mondelez boss Dirk Van de Put said investors don’t “morally care” whether companies continue doing business in Russia
Mark Dixon of the Moral Ratings Agency said companies in Russia were “feeding” Vladimir Putin’s regime, adding: “It’s all linked.”
“Purchasing a Cadbury chocolate in Coventry funds the company that finances Russia to launch a Kalibr missile at kyiv.”
Mondelez bought Cadbury in a £11.5bn hostile takeover in 2010, a deal that resulted in thousands of jobs being lost and some production being moved overseas.
It has three plants in Russia, employing 3,000 people and supporting a supply network of more than 10,000 farmers.
He was included on a blacklist of “international war sponsors” compiled by Ukraine last year. Activists and parliamentarians say it is sending money to the Russian war fund through taxes.
Mondelez has said there are “no easy decisions” and that if it abandons Russia completely, it could fall into the hands of the Kremlin.
A spokesman said: ‘Since the start of the war, we have condemned the brutal aggression against Ukraine. If we were to suspend all operations, we would run the risk of handing over all of our operations to another party who could use all of the profits for their own interests.
‘It would mean cutting off part of the food supply to 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.’
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