Mondelez International, the renowned global snack maker behind popular brands like Oreo and Toblerone, is grappling with a growing corporate boycott across the Nordic region due to its involvement in Russia, Reuters reported on Monday.
Major players in Norway and Sweden, including airlines, railway groups, hotels, retailers, shipping companies, and even the Norwegian Football Association, have recently announced their decision to stop selling Mondelez products. This boycott poses a significant challenge to Mondelez’s local business, prompting the company to seek a meeting with Norwegian government representatives to safeguard its operations in the region.
Boycott Expansion and Govt. Involvement
Leading Nordic companies such as airlines SAS and Norwegian Air, railway group SJ, hotel chain Strawberry, retailer Elkjop, shipping group Fjord Line, and the Norwegian Football Association have joined the boycott, publicly declaring their intention to discontinue the sale of Mondelez products. Mondelez, known for its strong presence in Norway and Sweden through local chocolate manufacturers Freia and Marabou, now faces an uphill battle to retain its market share.
In response to the escalating situation, the Norwegian foreign ministry has announced plans to meet with companies on both sides of the boycott. However, the ministry has refrained from proposing a specific solution, emphasising that it is up to companies and individuals to make independent choices regarding their trade partners. State Secretary Erling Rimestad has underscored the importance of individual decision-making while highlighting that some Western companies divested their Russian assets following Moscow’s invasion of Ukraine last year.
Nordic companies’ decision to boycott Mondelez stems from an announcement made by Ukraine’s National Agency for the Prevention of Corruption earlier this year. The agency blacklisted Mondelez and several other groups for conducting business with sanctions-hit Russia. The move prompted Coop Norge, Norway’s second-largest food retailer, to seek guidance from the Norwegian government before making any decision on its association with Mondelez.
Chicago-based Mondelez has vehemently defended its position, stating that it does not sell Russian-made products in Norway. The company asserts that official guidelines should be based on objective criteria that treat all companies equally. Mondelez also clarified that it maintains limited activity in Russia, having halted investments and advertising after the war began last year. The company reaffirmed its commitment to complying with political decisions and sanctions, signaling its willingness to make necessary operational adjustments to ensure full compliance.
Mondelez International finds itself navigating choppy waters as a widening boycott threatens its sales in the Nordic region. With major companies discontinuing Mondelez products and seeking government guidance, the company faces significant challenges ahead. The outcome of the meeting between Mondelez and Norwegian government representatives holds the key to resolving this brewing controversy. As the situation unfolds, stakeholders eagerly await further updates on how Mondelez plans to address the Nordic boycott and safeguard its regional operations.
(With Inputs from Reuters)
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