Mar 24, 2022 - Economy & Business

Nestlé pulls KitKat and Nesquik from Russia

close up shot of Nestle KitKat bar
Photo: Jason Adlen/Bloomberg via Getty Images

KitKat and Nesquik won’t be sold in Russia as parent company Nestle tries to extract its business carefully from the country. 

Why it matters: Along with other consumer brands including PepsiCo and Procter & Gamble, the world’s biggest food and beverage company is having to navigate decisions around providing essential foods and supplies, and pulling many others that could yield more profit.

Context: Ukraine’s president Volodymyr Zelensky singled Nestle out over the weekend for continuing to operate as hundreds of corporations have left.

  • Nestle had already been slowly shrinking its presence in Russia since the war between the two countries began — such as halting its advertising and shipments of other non-essential foods including Nespresso coffee capsules and San Pellegrino.

What they’re saying: The "vast majority of volume and sales" in Russia come from products that are now being pulled, a Nestle spokesperson told Reuters

  • If there are any profits, the company will donate them to “humanitarian relief organizations."
  • In Ukraine, the company says it can currently deliver 60% of its pre-war volume.

The big picture: Nestle employs more than 7,000 people in Russia and operates six factories.

  • “We are in the process of identifying solutions for our people and our factories in Russia. We will continue to pay our people," a company spokesperson tells Axios.
  • In Ukraine, where the company employs 5,800 people, Nestle says it's paying advance salaries and offering financial support for relocations.
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