NEW YORK, May 31 (Reuters) - Snack maker Mondelez ( MDLZ )
resumed its production of Oreo cookies in Ukraine,
after its plant in a small city in the eastern part of the
country was badly damaged during Russia's invasion roughly two
years ago.
Mondelez's ( MDLZ ) plant in Trostyanets is now fully rebuilt after
opening partially last year to make chocolates, according to a
company statement.
The company said the Oreo cookies and other chocolates
produced at the Ukrainian factory are not being exported to
neighboring Russia. Mondelez ( MDLZ ) has three factories in Russia and
sells its cookies and snacks there despite boycotts and calls
for it to stop from employees, activists and investors.
Mondelez ( MDLZ ) said it was making its business in Russia
"stand-alone" with a self-sufficient supply chain by the end of
2023. It appointed new leadership in Europe including Russia
earlier this year.
Mondelez's ( MDLZ ) rivals including Nestle, the world's
biggest food company, continue to sell their products in Russia.
Food does not fall under international sanctions.
While the plant in Trostyanets was being repaired, Mondelez ( MDLZ )
imported Oreos to Ukraine, said a source familiar with the
company's plans, who is not permitted to speak to media.
The company said products made in the Trostyanets plant are
exported into Eurasian countries such as Georgia and Kazakhstan
in addition to being sold in the domestic Ukrainian market.
Plants in Russia previously helped supply those countries,
the source said.
"We continue to increase our investments in supporting and
rebuilding Ukraine," the company said in the statement.
Mondelez ( MDLZ ) previously told Reuters there were no more exports
from Russia into Europe.
Chocolate wafers with a cream vanilla filling, Oreos are one
of Mondelez's ( MDLZ ) biggest brands, and hit about $4 billion in sales
revenue last year, according to a LinkedIn post from CEO Dirk
Van de Put. Mondelez's ( MDLZ ) other top brands include Milka and
Cadbury chocolates. It also makes local-brand cookies and
crackers.
A little over 30% of Mondelez's ( MDLZ ) shareholders last week
backed a resolution calling for the company to conduct an
independent study of the risks of continuing to do business in
Russia, according to a company filing.
Norges Bank, Mondelez's ( MDLZ ) 11th-largest shareholder according
to LSEG's Eikon, backed the proposal, according to the fund's
disclosures. The fund said in the disclosure that when a company
"does not meet our needs as a financial investor, we will
consider supporting a well-founded shareholder proposal."
(Reporting by Jessica DiNapoli in New York; Editing by Lincoln
Feast.)