Nestle will stop manufacturing brands such as KitKat and Nesquik in Russia, and the world’s largest food company will shut down all domestic operations on Wednesday as Russian troops continue to attack Ukrainian cities. Said under public pressure.
“As the war in Ukraine intensifies, our work in Russia focuses on providing essential foods such as baby food and medical / hospital nutrition,” a Swiss company said in Russia’s ongoing. Almost a month after the military attack began, he said in the latest information on Wednesday. “We will stop the famous Nestle brands such as KitKat and Nesquik in the future.”
According to media outlets such as Bloomberg News and CNN, Ukrainian President Volodymyr Zelensky has selected a Swiss company as remaining in Russia in a speech to thousands of demonstrators in Bern, the capital of Switzerland. rice field.
“‘Good food, good life.’ This is Nestlé’s slogan. Your company refuses to leave Russia. Even now, when there is a threat from Russia to other European countries. Not just us. Even when there is a nuclear blackmail from Russia, “he said.
Zelenskyy’s remarks reflected comments by Ukrainian Prime Minister Denys Shmyhal last week, who in a tweet blew up Nestlé CEO Mark Schneider about his company’s stance on doing business in Russia. The Swiss company stopped shipping non-essential items to Russia earlier this month, but continues to sell baby food, cereals, pet food and more domestically.
“Unfortunately, he doesn’t understand,” Shmyhal said in a tweet about Nestlé’s CEO. “Paying taxes on the budget of a terrorist country means killing unprotected children and mothers. I hope Nestlé will change his mind soon.”
Talked to @ Nestle CEO Mark Schneider on the side effects of staying in the Russian market. Unfortunately, he doesn’t show any understanding. Paying taxes on the budget of a state sponsor of terrorism means killing unprotected children and mothers. I hope Nestlé will change his mind soon.
— Denys Shmyhal (@Denys_Shmyhal) March 17, 2022
Nestle protects itself
Nestlé, which had previously stopped non-essential imports and exports to and from Russia, said it was not profiting from the rest of its activities there. “As with any food company, the fact that we supply important food to the public does not mean that we simply continue as before,” a company spokeswoman said. Said in an email to CBS MoneyWatch.
“We are doing whatever we can in Ukraine and its neighbors to mitigate this humanitarian catastrophe,” a spokesman added. “We are still one of the few active food companies in Ukraine and can even distribute food in Kharkov.”
Nestlé said it employs 5,800 people in Ukraine.
According to the list of Professor Jeffrey Sonnenfeld of Yale University, Nestlé has stopped new investment and advertising in Russia, but is one of many companies that continue to sell their products in Russia. Sonnenfeld claims that about 30 companies are resisting the demand to end or reduce their operations in Russia.
MoneyWatch: World economy feels the impact of Western sanctions on Russia 05:41
Hundreds of US and other large Western companies have withdrawn from Russia since the country attacked Ukraine on February 24. US companies withdrawing include Apple, Boeing, Caterpillar, Coca-Cola, Disney, Exxon, Ford, JPMorgan, MasterCard, McDonald’s, Microsoft, Nike, Visas and many more.
“There is no compromise here,” Sonnenfeld told CBS News earlier this month. Government sanctions say, “It’s rare to be completely successful on its own. It takes fairly universal support from the business community to truly paralyze the economy as intended.”
According to Harris Paul, Americans generally agree with the position of professor. Three-quarters of Americans said companies should stop doing business there, with a majority refusing to help companies still in Russia and finding alternative products.
“Americans are watching how businesses respond to the war with Ukraine. Opportunities for businesses to confront Russia will prove an important moment in the reputation management of many global businesses,” Harris said.・ Paul described the results of the investigation by e-mail.
Congress to raise heat
The White House was asked about food companies that still operate in Russia, such as Cargill and ADM, but said they had never asked any particular company to withdraw.
“We praise those who made the decision, and they will have to make the decision on their own,” Spokesperson Jen Psaki said in a briefing on Monday.
Companies may be under parliamentary pressure to leave Russia. Congressman Caroline B. Maloney submitted a bill on Monday banning the United States from purchasing goods and services from companies operating in Russia.
“The world has been in terror for four weeks as Russian troops launched a barbaric attack on a peaceful and independent Ukrainian country,” the Democratic Party of New York said in a statement.
“Pressure to undermine Russia’s ability to fund this unprovoked war because of the devastating image that thousands of innocent civilians, including US journalists, have been killed and injured in Ukraine. It is essential to strengthen, “Maloney said. “Many companies have made the right decision to close or significantly reduce their operations in Russia, but others have not.”
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