As war rages in Ukraine, Nestle suspends sales of KitKat and Nesquik in Russia

Nestlé will stop manufacturing brands like KitKat and Nesquik in Russia, the world’s largest food company said on Wednesday amid public pressure to stop all business in the country as Russian forces continue to bomb cities in Russia. Ukraine.

“As the war wreaks havoc in Ukraine, our activities in Russia will focus on providing essential foods, such as baby food and medical / hospital nutrition,” the Swiss company said in an update on Wednesday, almost a month after it began. the ongoing military assault on Russia. “In the future, we will suspend Nestlé’s recognized brands such as KitKat and Nesquik, among others.”

Ukrainian President Volodymyr Zelenskyy told the Swiss company on Saturday to stay in Russia in a speech to thousands of protesters in Bern, the capital of Switzerland, according to media outlets such as Bloomberg News and CNN.

“Good food. Good life. That’s Nestlé’s slogan. Your company refuses to leave Russia. Even now, when there are threats from Russia to other European countries. Not just us. and all when there is nuclear blackmail from Russia, “he said.

Zelenskyy’s remarks echoed last week’s comments by Ukrainian Prime Minister Denys Shmyhal, who in a tweet criticized Nestlé CEO Mark Schneider for his company’s position on doing business in Russia. The Swiss company stopped shipping non-essential goods to Russia earlier this month, but continues to sell baby food, cereals and pet food in the country.

“Unfortunately, he doesn’t show any understanding,” Shmyhal said of Nestlé’s CEO in a tweet. “Paying taxes on a terrorist country’s budget means killing defenseless children and mothers. We hope Nestlé changes its mind soon.”

Nestlé defends itself

Nestlé, which previously stopped non-essential imports and exports in and out of Russia, said it did not make a profit from its remaining activities there. “The fact that we, like other food companies, supply the population with important food does not mean that we continue as before,” a company spokesman said in an email to CBS MoneyWatch.

“We are doing everything we can in Ukraine and neighboring countries to help alleviate this humanitarian catastrophe,” he said. “We are still one of the few food companies active in Ukraine and sometimes we even manage to distribute food in Kharkiv.”

Nestlé said it employs 5,800 people in Ukraine.

Nestlé is one of the a number of companies that have suspended new investment and advertising in Russia but continue to sell products there, according to a list of Yale University management professor Jeffrey Sonnenfeld. Sonnenfeld claims that about three dozen companies are resisting demands to leave or reduce their activities in Russia.

Hundreds of large American and other Western companies they have withdrawn from Russia since the country attacked Ukraine on February 24. US companies to go out include Apple, Boeing, Caterpillar, Coca-Cola, Disney, Exxon, Ford, JPMorgan, MasterCard, McDonald’s, Microsoft, Nike, Visa and many more.

“There’s no middle ground here,” Sonnenfeld told CBS News earlier this month. Government sanctions “rarely succeed on their own; they need fairly universal support from the business community to really paralyze an economy as intended.”

The general American public agrees with the professor’s position, according to a Harris poll. Three-quarters of Americans say companies should stop doing business there, and most said they would refuse to support a company still in Russia and find alternative products, he found.

“Americans are watching companies respond to the war in Ukraine, and the opportunity for companies to take a stand against Russia will be a critical moment in reputation management for many global companies,” he said. Harris Poll on his findings by email.

Congress increases the heat

Asked about food companies such as Cargill and ADM that still operate in Russia, the White House said it had not asked any specific companies to leave the country.

“We applaud those who have made this decision and will have to make decisions on their own,” Secretary of State Jen Psaki told reporters in a briefing on Monday.

Businesses could be under pressure from Congress to leave Russia. Deputy Carolyn B. Maloney on Monday introduced a bill banning the U.S. from buying products and services from companies operating in Russia.

“For four weeks, the world has watched in horror as Russian forces launch barbaric attacks on the peaceful, independent country of Ukraine,” the New York Democrat said in a statement.

“With the devastating images of thousands of innocent civilians killed and wounded in Ukraine, including American journalists, it is essential that the United States increase pressure to weaken Russia’s ability to fund this unprovoked war,” Maloney said. “While many companies have made the right decision to end or significantly reduce their operations in Russia, others have not.”