Oreo Production Resumes in Ukraine as Mondelez Rebuilds War-Damaged Factory
Mondelez International has successfully resumed production of Oreo cookies in Ukraine, following extensive repairs to its plant in Trostyanets, which was severely damaged during Russia’s invasion nearly two years ago.
The plant, located in a small city in eastern Ukraine, is now fully operational after a partial reopening last year for chocolate production. Mondelez announced that while Oreos and other chocolates are being produced at the Ukrainian facility, these products are not being exported to neighbouring Russia. Instead, they are distributed within Ukraine and exported to Eurasian countries such as Georgia and Kazakhstan.
Mondelez, which owns three factories in Russia, has faced boycotts and calls to cease operations in Russia from employees, activists, and investors. Despite this, the company continues to operate in Russia, aiming to make its business there “stand-alone” with a self-sufficient supply chain by the end of 2023. Earlier this year, Mondelez appointed new leadership for its European operations, including Russia.
Other major food companies, such as Nestle, also continue to sell products in Russia, as food items are not subject to international sanctions.
During the reconstruction of the Trostyanets plant, Mondelez imported Oreos to Ukraine to meet local demand. The company stated its commitment to increasing investments in Ukraine, supporting the country’s recovery and rebuilding efforts.
Mondelez’s Oreo brand generated approximately $4 billion in sales revenue last year, according to a LinkedIn post by CEO Dirk Van de Put. The company also owns other prominent brands, including Milka and Cadbury chocolates, as well as various local-brand cookies and crackers.
Recently, over 30% of Mondelez’s shareholders supported a resolution for an independent study of the risks associated with continuing business in Russia. Norges Bank, the company’s 11th-largest shareholder, backed this proposal, citing the need for companies to meet the financial needs and ethical considerations of their investors.
