Swiss company Nestle restricts Russian production to essentials only

Brands like Burger King, Carlsberg, Heineken, Mars, McDonald’s, PepsiCo, Starbucks, and Yum Brands have been some of the early food companies to suspend a portion of their business in Russia, responding to the aggressive and abhorring invasion ordered by President Vladimir Putin on Ukraine.

Nestle SA, the world’s largest food manufacturer headquartered in Switzerland, has reportedly decided to suspend most of its production in Russia as multinationals address the rising pressure to exit the country post-invasion of Ukraine.  

According to Nestle, the food maker will no longer supply brands including Nesquik and KitKat focusing only on essential food products such as baby foods, infant formulas, and medical nutrition.

Moreover, the company will continue to derive effective solutions across factories to support its employees in Russia without disrupting their monthly salaries.

As the war in Ukraine continues to escalate with every passing day, Nestle will supply essential foods including infant food and hospital nutrition solely to help the people and not for profit in line with the company’s moral code which supports the basic right to food.

During last week’s speech that aired in the capital city Bern addressing thousands of Swiss protesters, Ukrainian President Volodymyr Zelenskiy scrutinized Nestle for continuing business in Russia.

Additionally, Prime Minister Denys Shmyhal bashed the food maker, tweeting on the social media platform that Mark Schneider (Chief Executive Officer of Nestle) has not realized the sensitivity and severity of the situation, hoping the company to get on board soon.

Meanwhile, Nestle has adopted a step-by-step approach to reducing its footprint in Russia ever since it initiated the war, starting with suspension of capital investments & advertising, followed by ceasing shipments of non-essential commodities like San Pellegrino water, and Nespresso coffee capsules.

As of now, the food manufacturer has continued to supply baby food, a few pet food categories and cereals, but claims to make no profit from its activities in Russia.

Source Credit: https://indianexpress.com/article/business/companies/nestle-to-suspend-brands-in-russia-including-kitkat-and-nesquik-7833068/