"Oreo Cookies Helping Putin" Criticism Pours in as Russian Market Expands

Mondelez Expands Market Instead of Withdrawing from Russia
Media and Civic Groups Also Criticize Simultaneously

As American and European companies have been announcing withdrawals in protest against Russia's invasion of Ukraine, it has come to light that Mondel?z, the manufacturer of the famous cookie brand 'Oreo,' is expanding its presence in the Russian market, sparking controversy. Experts unanimously criticized, saying, "Continuing distribution without withdrawing from Russia is helping Vladimir Putin's war."

[Image source=Reuters Yonhap News]

On the 20th (local time), Bloomberg cited data from U.S. trade research firm Import Genius, reporting that from January to July last year, Mondel?z's Russian division imported 20 million kg of chocolate, biscuits, and candy, an increase of more than 2% compared to the previous year. Headquartered in Chicago, Mondel?z sells globally popular snacks such as Oreo, Ritz, Toblerone, and Milka chocolate. Bloomberg pointed out, "Despite promising to scale back operations due to Russia's invasion of Ukraine, Mondel?z is instead increasing its presence in Russia."

Moreover, Mondel?z recently conducted market research in Russia. According to internal documents obtained by Bloomberg, Mondel?z tested Milka products with the market research firm Ipsos in October last year and published a report in December on the impact of consumer behavior on Milka and Oreo after the pandemic. In January, they even analyzed the consumption behavior of Russia's Generation Z.

On the 13th, Vince Gruber, president of Mondel?z Europe, appointed a general manager to lead the Russian business. Although Mondel?z initially promised in 2022 to halt investments and advertising in Russia, this move reveals a clear intention to actively target the Russian market. It is also reported that Mondel?z received a report this month stating, "Despite a decline in sales, profitability in the Russian business last year exceeded historical levels."

Mondel?z issued a statement to Bloomberg, saying, "Halting our operations (in Russia) would mean cutting off food supplies to many families who have no voice in the war." Food is an essential item and is not subject to international sanctions. The company argues that Oreo cookies and Milka chocolate contain a lot of sugar and can be stored at room temperature, making them essential items for civilians during wartime.

[Image source=AFP Yonhap News]

However, the controversy over their continued business in Russia aiding Putin is unlikely to subside anytime soon. Bloomberg criticized, "At least 10,000 civilians have died due to Russia's invasion of Ukraine. Unofficial estimates suggest the death toll is much higher."

The Ukrainian support civic group 'B4 Ukraine' stated, "We have expressed our concerns to Mondel?z multiple times," adding, "Their excuses for staying in the Russian market are unrealistic," and criticized, "Instead, the company is paying taxes to the Russian government and normalizing life in a country waging one of the most horrific wars in human history."

Earlier, in July, Mondel?z was named in a report by Yale University professor Jeff Sonnenfeld on companies that have not withdrawn from Russia after the invasion of Ukraine. In the report, he described the situation as "beyond disappointing, unethical, and shameful," and pointed out, "Consumers need to realize that by supporting such companies, they are fueling Putin's war machine."