Mondelēz receives backlash from Nordic companies over business in Russia

13 Jun 2023 --- Mondelēz International is facing a corporate boycott in the Nordic region over its presence in Russia, with the snacking giant reportedly meeting with Norwegian government officials this week as it plans to protect the group’s local business.

Nordic companies have outlined that their decisions to stop selling Mondelēz products have been based on an announcement by Ukraine’s National Agency for the Prevention of Corruption, which issued a list of companies deemed “sponsors of war” to blacklist the snack maker and other companies.

Earlier this week, the Norwegian foreign ministry said it planned to meet with companies on both sides of the boycott but stopped short of recommending a solution.

“It’s up to companies and individuals to make independent choices regarding what to buy and whom to trade with,” State Secretary Erling Rimestad revealed in a statement.

Who will cease trading?
Airlines SAS and Norwegian Air, railway group SJ, hotel chain Strawberry, retailer Elkjop, shipping group Fjord Line and the Norwegian Football Association are among the companies planning to stop selling Mondelēz products.

Nordic companies, including Norwegian Air (stock image), have outlined their decisions to stop selling Mondelēz products in the region.Coop Norge, Norway’s second-largest food retailer, said it had asked to meet the country’s government to discuss the issue.

Mondelēz Norge, the Oreo maker’s local subsidiary, said it would write to government officials to outline its position and propose its meeting.

“We hope and believe that this [Coop Norge’s request for a meeting] means that the debate focuses on objective criteria,” says Chris Callanan, the CEO of Mondelēz Norge.

“The fact is that international suppliers who are behind a significant part of the daily goods in Norway still maintain operations in Russia to varying degrees, without breaking sanctions.”

“Continuing necessary adjustments”
Mondelēz owns the Norwegian snacks brand Freia. Freia products are manufactured at a facility in the Oslo suburb of Rodeløkka.

In its statement, Mondelēz Norge asserted that its “parent company, Mondelēz International, complies with all policy decisions and sanctions and will continue to consider necessary adjustments to operations to ensure full compliance.”

We believe that official policy should be based on the formal sanctions regime and any adjustments to this in the future and that all policy and official guidelines should be based on objective criteria that treat all companies equally, Callanan adds.

Mondelēz says it does not sell products in Norway made in Russia, where it has “maintained a limited operation.”

A spokesperson for Norwegian Air said that products from Mondelēz “will not be sold on board our flights for the time being,” as it plans to conduct a full review of all its suppliers.

Coop Norge also stated: “We need advice and clarifications on how the Norwegian authorities want us and Norwegian consumers to deal with companies that Ukraine blacklists.”

“Such a clarification is important for equal treatment should other companies appear that supply the Norwegian market and have ties to Russia. Then we will be able to act quickly, knowing that what we are doing is in line with the government’s recommendations – and that the government supports such measures.”

Dialogues ongoing
Another major Norwegian retailer, Rema 1000, said it was “in dialogue” with Mondelēz.The Oreo and Toblerone maker has been forced to defend its presence in Russia.

“Rema 1000 is monitoring the case closely and is in dialogue with our supplier Mondelēz. 

But we must emphasize that in early 2022 we went through our entire range of products and removed items produced in Russia or on Russian raw materials. We adhere to, and will at all times comply with, all Norwegian sanctions,” Line Aarnes, director of category and procurement at REMA 1000 Norway, stated.

A spokesperson for Norwegian grocer Norgesgruppen also noted that the company is making “thorough, ongoing assessments.”

“This is a complex situation, and it is important not to make hasty decisions, which can have unintended consequences. A boycott always has many serious consequences, and it can affect innocent people. In response to Russia’s brutal warfare, the EU has introduced several sanctions against Russia, which the Norwegian authorities also support, and we also relate to these sanctions.”

Edited by Elizabeth Green