Procter & Gamble Co is ending all new capital investments in Russia and "significantly reducing" its portfolio to focus on basic hygiene, health and personal care items, CEO Jon Moeller said in a letter to employees posted on its website.
Big investors such as New York State's pension fund are telling companies they should consider pausing operations in Russia as Russia invades neighbouring Ukraine.
Cincinnati, Ohio-based Procter & Gamble is also suspending all media, advertising and promotional activity, Moeller said in the post. The company said on its website that its Russian division makes Tide detergent, Pampers diapers and Gillette razors.
Procter & Gamble has 2,500 direct employees in Russia and 500 in Ukraine, according to a spokesperson.
Operations In Ukraine, Russia
Moeller said in the blog post that the company "proactively suspended" operations in Ukraine and is providing evacuation support, financial assistance, food and shelter to help employees.
Procter & Gamble's business in Russia and Ukraine accounts for less than 2% of the company's global sales, a spokesperson said. P&G had $76.1 billion in global net sales in its last fiscal year.
Dairy firms Arla Foods and Valio have joined the growing list of firms to halt operations in Russia, due to the ongoing conflict with Ukraine.
Elsewhere, Swiss chocolate maker Lindt & Sprüngli said it expects to grow sales by 6-8% this year, mostly due to price increases, and will continue its small operation in Russia.
News by Reuters, edited by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.