Nestlé Suspends Many Russian Products, Including KitKat

London, March 23 -Nestlé announced on Wednesday that it will stop selling some non-essential products, including KitKat candy bars and Nesquik chocolate mixes in Russia. Ukrainian President Volodymyr Zelenskiy.

Nestlé’s share price fell 1.3% at 1236 GMT after the session slumped shortly after the news. This statement was unusual for Maggie Bouillon and Nescafé coffee makers, who have been operating in war zones around the world for decades.

Nestlé’s suspended brands account for “the majority of sales and sales” in Russia, at CHF 1.7 billion ($ 1.82 billion) in 2021, a spokeswoman said. .. Production of these items will also stop.

Zelenskiy called on several businesses over the weekend for staying in Russia after the invasion of Ukraine, accusing Nestlé of not following the “Good Food, Good Life” slogan. Nestlé had already received online criticism from shoppers, activists, investors and politicians for several days before commenting.

The company previously said it had stopped non-significant imports and exports from Russia, stopped all advertising and stopped capital investment. He also said that Russia is not making a profit.

“We are standing with the Ukrainian people and the 5,800 employees there,” Nestlé said. He said it would continue to pay Russian employees.

Western companies maintaining a presence in Russia to provide essentials such as food and medicine are trying to balance and pull in the opposite direction between President Vladimir Putin’s government and Ukrainian supporters. I am.read more

Since the attack on Ukraine began on February 24, more than 400 companies have withdrawn from Russia, leaving a total of hundreds of billions of dollars worth of assets.

Nestlé wasn’t the only one to continue to provide basic nutritional and hygiene items such as milk and diapers. PepsiCo Inc, Unilever (ULVR.L) and Procter & Gamble (PG.N) have also stated that they will maintain their presence to offer essential products in Russia.

The logo was drawn at the 152nd Nestlé Annual Meeting held in Lausanne, Switzerland, on April 11, 2019. REUTERS / Denis Balibouse

“Long-term damage”

For decades, Nestlé has been the subject of criticism from activist groups and governments on issues such as the company’s bottled water production, the decision to stay in South Africa during apartheid, and milk powder marketing practices.

“We have a history of protesting Nestlé,” said Jaideep Prabhu, a marketing professor at the University of Cambridge Judge Business School.

“Nestlé is far more front and centered than P & G (PG.N) and Unilever (ULVR.L) for those who know they manufacture their products … the Nestlé logo is their product. It stands out very much. “

Twitter user Amy Vanderpool posted on Sunday that “Nestlé has refused to withdraw from Russia, even after desperate plea from Ukraine and President Zelensky.” The post encouraged a boycott of the product and included a list of Nestlé brands.

The company was also accused by some Ukrainian politicians and activist groups Anonymous, urging a boycott of the product.

“@Nestle has enabled the continuation of Russia’s war of aggression in Europe by refusing to suspend operations in Russia,” said Ukrainian Foreign Minister Dmytro Ivanovych Kuleba, who has more than 742,000 Twitter followers. Tweeted to.

“The long-term damage to the company’s reputation is proportional to the scale of Russian war crimes in Ukraine (huge). It’s never too late to change your mind, Nestle.”

($ 1 = 0.9346 CHF)

Report by Richa Naidu in London. Edited by Jason Neely and Bernadette Baum

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