Exclusive-Mondelez revamps European operations after boycotts over Russian business, internal memos show
By Jessica DiNapoli
NEW YORK (Reuters) -Oreo cookie-maker Mondelez (NASDAQ:MDLZ) put new management in place at its profitable Russian business this week, according to two internal company memos seen by Reuters that reveal fresh details of a corporate overhaul in Europe.
After months of boycotts and pressure from shareholders and activists to leave Russia, Chicago-based Mondelez stopped advertising in the country, but has failed to exit Russia entirely.
In one of the internal memos seen by Reuters, Europe president Vince Gruber informed staff that it appointed a new general manager to lead its Russia business, which Gruber described as a «standalone organization.»
But in his new role, the Russia general manager reports to another executive who reports to Gruber, the memo said. The arrangement may not placate Mondelez critics. The company has three factories in Russia and has continued to sell its products including Milka chocolate there despite investor pressure and boycotts calling for it to leave.
«In the law we use the expression 'a distinction without a difference.' This is an attempted workaround that is not very meaningful,» said Nell Minow, a corporate governance expert and vice chair of ValueEdge Advisors. «There are certain kinds of business connections where you see a justification, if it has to do with health, urgently needed supplies. These are cookies and there really is no excuse.»
In response to Reuters' questions, Mondelez said on Friday that «effective at year-end 2023, we have stood up our local business to operate more independently.»
It added: «Products sold in Russia are now produced and distributed locally, with no imports of finished goods from Europe into Russia or exports from Russia into
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