Nestle Stops Selling Consumer Packaged Goods In Russia
Consumer packaged goods ( CPG) giant Nestle will stop selling the bulk of its products in the Russian market, barring basic essentials.
The company said that it is largely suspending most of its manufacturing in Russia as it continues to face pressures to fully exit the country in response to Russia’s brutal attack on Ukraine.
Popular products such as KitKat and Nesquik will no longer be available, the company said on Wednesday. Meanwhile, Russian consumers will continue to have access to essential products such as baby food and medical nutrition.
Nestle is in the process of identifying solutions for its factories and workers in the country who will continue to be on company payroll, a spokesperson told Bloomberg, adding that Nestle is suspending most of its sales and production in the country.
“As the war rages in Ukraine, our activities in Russia will focus on providing essential food, such as infant food and medical/hospital nutrition — not on making a profit,” Nestle said in the statement. “This approach is in line with our purpose and values. It upholds the principle of ensuring the basic right to food.”
“While we do not expect to make a profit in the country or pay any related taxes for the foreseeable future in Russia, any profit will be donated to humanitarian relief organizations,” the company said.
Nestle’s move to cut production and sales in the country comes after Ukrainian President Volodymyr Zelenskiy called out the company in a streamed speech to several thousands of protesters in Bern, Switzerland.
The company reportedly has more than 7,000 employees and six factories in the country. Sales of its products such as confectionery and coffee accounted for 2% of its total revenue in the country in 2021.
Originally published at https://retailbum.com on March 23, 2022.
