The owner of Cadbury has been attacked by MPs for continuing to sell chocolate in Russia two years after the invasion of Ukraine.
Labour’s Alex Sobel, who co-chairs an all-party Ukraine group, has written to Dirk Van de Put, chief executive of US food giant Mondelez, which took over the beloved British chocolate brand Cadbury in 2010.
It comes after Van de Put this week said investors do not ‘morally care’ whether companies continue to do business in Russia, adding that no shareholders had pressured it to leave after the invasion of Ukraine.
Mondelez’s Russian business contributed 2.8 per cent of its global revenues in 2023, down from 4 per cent in 2022.
In the letter, Sobel says he is ‘deeply concerned’ by Mondelez’s actions.
Putin: Cadbury-owner Mondelez says there are ‘no easy decisions’ over its continued trading in Russia
And campaigners said it was time for it to ‘drop the keys and leave’ Russia, where the US conglomerate sells a number of its brands in Russia including Milka chocolate, Belvita cereal and Oreo biscuits.
Cadbury confectionery, including Dairy Milk bars, are also sold, though Mondelez claims this is due to unlicensed distributors and imports.
It argues a full exit would cause more harm than good as its operations could fall into the hands of the Kremlin.
Mondelez has already faced a sweeping backlash in other countries, including in Scandinavia.
There were boycotts from airlines and football clubs in countries like Norway and Sweden, with even the latter’s royal family turning their back on a popular chocolate brand.
Sobel said Mondelez’s actions send ‘a worrying message and suggests a disregard for the suffering of those affected by the conflict’.
He added: ‘I understand the complexities of operating in a global market, but I ask that you consider the broader impact – by continuing to operate and sell products in Russia, you risk undermining the values of integrity and compassion that should guide corporate conduct.
‘I urge you to reassess your stance on this matter and take decisive action to align with principles of social justice and human rights.’
Choc block: Cadbury confectionery, including Dairy Milk bars, are still being sold in Russia
The interventions follow the Mail on Sunday’s revelations last August that FTSE 100 giant Coca-Cola HBC refused to close factories in Russia, and switched to selling a local knock-off cola drink.
British giant Unilever has been attacked for selling ice creams in the country.
Other brands, including Mars, Nestle and Procter & Gamble also sell products there.
Bob Seely, who chairs the Ukraine parliamentary group, said: ‘I think any company doing business in Russia without good reason should suffer reputational damage. They are helping fascism, pure and simple.
‘Anyone who makes a profit in Russia is funding a war machine that is killing in Ukraine and murdering political opponents in Russia.’
Charity Business4Ukraine said: ‘A bar of Mondelez is not as innocent as one might think.
‘Corporate taxes paid by western companies such as Mondelez enable Russia’s further militarisation. It’s time to drop the keys and leave. It’s the only way to defund Russia’s illegal, brutal war.’
Mondelez says its Russian arm now operates ‘more independently’ – but critics say they are still selling goods in Russia and profiting from them.
Strident: Mondelez boss Dirk Van de Put said investors do not ‘morally care’ whether companies continue to do business in Russia
Mark Dixon, of the Moral Ratings Agency said firms in Russia were ‘feeding’ Vladimir Putin’s regime, adding: ‘It’s all linked.
‘Buying a Cadbury chocolate in Coventry funds the company that funds Russia to deliver a Kalibr missile on Kyiv.’
Mondelez bought Cadbury in an £11.5billion hostile takeover in 2010, a deal that resulted in thousands of job losses, with some production moving overseas.
It has three plants in Russia, which employ 3,000 people, and support a supply network of more than 10,000 farmers.
It was put on a blacklist of ‘International Sponsors of War’ compiled by Ukraine last year. Campaigners and MPs say it is sending money to the Russian war chest via tax.
Mondelez has said there are ‘no easy decisions’ and if it fully exited Russia, it could fall into the hands of the Kremlin.
A spokesman said: ‘Since the beginning of the war, we have condemned the brutal aggression against Ukraine. If we suspended full operations, we would risk turning over our full operations to another party who could use the full proceeds for their own interests.
‘It would mean cutting off part of the food supply for families who have no say in the war. It would also create great uncertainty for our 3,000 colleagues and more than 10,000 farmers who depend on us.’
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
