Thursday, August 18, 2022
HomeBusinessNestle Pulls KitKat and Nesquik out of the Russian Market

Nestle Pulls KitKat and Nesquik out of the Russian Market

Nestle, the Swiss food giant, is withdrawing its famous brands from Russia, but will continue to offer critical commodities.

The company halted investing in the nation earlier this month, but has now halted sales of KitKat and Nesquik brands.

It comes after the corporation was heavily chastised by Ukrainian lawmakers.

In response to the war, a rising number of Western businesses have discontinued operations in Russia, but a handful have remained.

“As the war in Ukraine rages on, our actions in Russia will be focused on supplying critical food, not profit,” Nestle stated.

“We are completely compliant with all international sanctions imposed on Russia,” the statement continued.

In a live-streamed speech to demonstrators on Saturday, Ukraine’s President Volodymyr Zelenskiy chastised Nestle for continuing to do business in Russia.

Denys Shmyhal, the Prime Minister of Ukraine, had earlier stated that Nestle CEO Mark Schneider “shows no comprehension.”

He expressed himself as follows: “Paying taxes to a terrorist country’s budget entails the murder of defenseless children and mothers. I’m hoping Nestle will reconsider its position shortly.”

As a result, the hashtag #BoycottNestle became popular on Twitter.

Since the start of the Ukraine war, the corporation has been steadily limiting its activities in Russia, but it has been under pressure to completely withdraw.

It halted shipments of non-essential items including Nespresso coffee capsules and San Pellegrino water earlier this month after canceling advertising and financial initiatives.

However, it continues to sell several of its products, claiming that “we have a responsibility to our over 7,000 workers in Russia, the majority of whom are locals.”

It will now only sell infant food and medical and hospital nutrition as a result of the current shift.

“While we do not intend to generate a profit or pay any relevant taxes in Russia for the foreseeable future,” the company added, “any profit will be donated to humanitarian assistance organizations.”

“We support Ukraine’s people and our 5,800 employees there.”

International brands like as McDonald’s, L’Oreal, H&M, and Apple have all discontinued or reduced their operations in Russia thus far.

A small number of businesses continue to manufacture non-essential items in Russia, while M&S and Burger King claim that intricate franchise arrangements prevent them from closing their stores there.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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