🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Mondelez CEO says will close plants in Ukraine if situation becomes 'too dangerous'

Published 02/23/2022, 06:06 PM
Updated 02/23/2022, 08:26 PM
© Reuters. FILE PHOTO: Oreo biscuits and a Toblerone Swiss milk chocolate are seen displayed in front of Mondelez International logo in this illustration picture taken July 26, 2021. REUTERS/Dado Ruvic/Illustration
MDLZ
-

By Jessica DiNapoli

NEW YORK (Reuters) - Oreo cookie maker Mondelez International Inc (NASDAQ:MDLZ) will close its plants in Ukraine if the country's tensions with Russia escalate and become "too dangerous," Chief Executive Officer Dirk Van de Put told Reuters on Wednesday.

The snack maker has more than 4,300 employees in Eastern Europe, a region that spans from Moscow to Turkey to Kazakhstan, according to its website.

"To make sure those people are safe ... that's the number one concern," Van de Put said in a Zoom interview. "We have big business in both countries. If that means we have to close plants because it is too dangerous, we will do so."

In Russia and Ukraine, countries Mondelez considers emerging markets in Europe, the company manufactures local brands such as Jubilee biscuits and Korona chocolate. The Chicago-based company also sells biscuits including Oreo cookies, chocolate such as Milka, and gum and candy in the region.

The U.S. State Department said a Russian invasion of Ukraine remains potentially imminent, with Ukraine declaring a state of emergency on Wednesday.

As a precaution, Mondelez also recently boosted its cybersecurity. Van de Put said Mondelez "immediately" took steps to safeguard its information technology network against attacks.

"The war may also be played out through (computer) viruses," the CEO said. "That could be part of this war."

Mondelez is also concerned about ensuring that its plants are not physically destroyed, Van de Put said.

© Reuters. FILE PHOTO: Oreo biscuits and a Toblerone Swiss milk chocolate are seen displayed in front of Mondelez International logo in this illustration picture taken July 26, 2021. REUTERS/Dado Ruvic/Illustration

He told Reuters that he also wants to make sure store shelves in Ukraine remain stocked and that "we keep supplying the market, and that includes stockpiling ingredients."

(This story corrects headline and first paragraph to say Mondelez will close plants only in Ukraine, not Russia, if tensions escalate)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.