Nestlé pulls KitKat and Nesquik from Russia
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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.
