Candy, Cookie Manufacturer Mondelez Restarts Oreo Factory In Ukraine, Eyes Independent Russian Operations

Zinger Key Points
  • Mondelez resumes Oreo production in Ukraine.
  • Meanwhile, the company aims for self-sufficient operations in Russia by 2023.

Mondelez International Inc MDLZ has resumed production of its popular Oreo cookies in Ukraine, following extensive damage to its factory in the eastern part of the country during Russia's invasion two years ago.

The company announced that its facility in Trostyanets has been fully rebuilt, having partially reopened last year to manufacture chocolates.

Mondelez stated the Oreo cookies and other chocolates produced at the Ukrainian plant are not being exported to neighboring Russia, reported Reuters.

Despite facing boycotts and calls to cease operations from employees, activists and investors, Mondelez continues to operate three factories in Russia, selling its cookies and snacks there.

The company aims to make its Russian business “stand-alone” with a self-sufficient supply chain by the end of 2023. New leadership has been appointed for Europe, including Russia, earlier this year.

While the Trostyanets plant was under repair, Mondelez reportedly imported Oreos into Ukraine.

Also Read: Cadbury-, Oreo-Maker Mondelez Receives 337.5M Euro Fine From EU For Anti-Competitive Practices

The products from the Trostyanets factory are being exported to Eurasian countries such as Georgia and Kazakhstan, in addition to being sold domestically in Ukraine.

Previously, plants in Russia supplied these countries. Mondelez has emphasized its ongoing investments in supporting and rebuilding Ukraine.

Mondelez reported that there have been no exports from Russia to Europe. Last year, Oreo sales revenue reached approximately $4 billion, according to CEO Dirk Van de Put.

Other major brands under Mondelez include Milka and Cadbury chocolates. Recently, over 30% of Mondelez’s shareholders supported a resolution calling for an independent assessment of the risks of continuing operations in Russia.

Norges Bank, the 11th-largest shareholder of Mondelez according to LSEG’s Eikon, backed the proposal. The fund indicated that it would support well-founded shareholder proposals if a company does not meet its needs as a financial investor.

MDLZ Price Action: Mondelez shares are up 0.12% at $67.95 Friday at publication.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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