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A-Brands

Mondelēz Says Ukrainian Biscuit Factory Suffered 'Significant Damage'

Mondelēz International Inc said its plant in Trostyanets, a town in eastern Ukraine, has suffered 'significant damage' because of military action due to the war.

The company added that to the best of its knowledge, no employees were injured in the attack. The Oreo plant – one of at least two Mondelēz factories in Ukraine, according to Mondelēz employees – was closed as soon as the war began, Mondelēz said in an emailed statement.

The United States assessed this week that Ukrainian forces have taken back Trostyanets from Russia.

Mondelēz, which makes Milka chocolate and other locally-branded biscuits in Europe, said telecommunications outages in the Trostyanets area have made it challenging to reach all of its employees. The company is also working with Ukrainian authorities to resupply water and power to the area and is donating wheat and sugar to local non-governmental organisations.

It is too soon to tell what the next steps will be for the plant, Mondelēz said.

Non-Essential Activities

Facing pressure to leave Russia in March, the Chicago-based snack manufacturer said it would scale back "non-essential activities" there while helping maintain food supply.

Earlier this month, chief executive Dirk Van de Put condemned the aggression and called for an end to the war in a memo on the company's website.

"We condemn this unjust aggression and stand firmly with those calling for peace and an end to the war," he said. "We continue to prioritize the safety of our people and our operations remain closed in Ukraine."

Read More: Mondelēz Profit Misses Estimates On Higher Raw Material, Logistical Costs

News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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