Nestlé pulls KitKat and Nesquik from Russia
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.
- 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.