Mondelez resumes production of Oreo cookies at a factory in Sumy region

A worker removes imperfect Oreo biscuits during control checks on the production line at the Trostyanets confectionery plant, operated by Mondelez International Inc., in Trostyanets, Ukraine. Vincent Mundy/Bloomberg/Getty Images

    U.S. confectionery, food and beverage company Mondelez has resumed production of Oreo cookies in Ukraine.

    Its plant in the city of Trostyanets was severely damaged during the Russian invasion about two years ago.

    Mondelez International resumed production of Oreo cookies at its factory in Trostyanets, Sumy Oblast, Ukraine, in late May 2024, following a full reconstruction of the facility which was heavily damaged during the initial stages of the 2022 invasion.

    US confectionery giant Mondelez International has reportedly started producing Oreo cookies again at its production site in Ukraine.

    Reports from Reuters indicate the site is back up and running following a complete reconstruction.

    Mondelez told the news agency that a section of the factory had opened for a brief period last year to manufacture chocolates.

    Just Food has contacted the snacks giant for additional comment.

    The snacks plant, situated in north-eastern Ukraine near the city of Trostyanets in the Sumy Oblast region, had been badly damaged following Russia’s invasion of the country in the first half of 2022.

    Mondelez had closed the site since 24 February when the conflict first began.

    A worker removes imperfect Oreo biscuits during control checks on the production line at the Trostyanets confectionery plant, operated by Mondelez International Inc., in Trostyanets, Ukraine. 
    Vincent Mundy/Bloomberg/Getty Images

    Mondelez’s plant in Trostyanets is now fully rebuilt after opening partially last year to make chocolates, according to a company statement.

    The company said the Oreo cookies and other chocolates produced at the Ukrainian factory are not being exported to neighboring Russia. Mondelez has three factories in Russia and sells its cookies and snacks there despite boycotts and calls for it to stop from employees, activists and investors.

    Mondelez said it was making its business in Russia “stand-alone” with a self-sufficient supply chain by the end of 2023. It appointed new leadership in Europe including Russia earlier this year.

    Mondelez’s rivals including Nestle, the world’s biggest food company, continue to sell their products in Russia. Food does not fall under international sanctions.

    While the plant in Trostyanets was being repaired, Mondelez imported Oreos to Ukraine, said a source familiar with the company’s plans, who is not permitted to speak to media.

    The company said products made in the Trostyanets plant are exported into Eurasian countries such as Georgia and Kazakhstan in addition to being sold in the domestic Ukrainian market.

    Plants in Russia previously helped supply those countries, the source said.

    “We continue to increase our investments in supporting and rebuilding Ukraine,” the company said in the statement.

    Mondelez previously told Reuters there were no more exports from Russia into Europe.

    Chocolate wafers with a cream vanilla filling, Oreos are one of Mondelez’s biggest brands, and hit about $4 billion in sales revenue last year, according to a LinkedIn post from CEO Dirk Van de Put. Mondelez’s other top brands include Milka and Cadbury chocolates. It also makes local-brand cookies and crackers.

    A little over 30% of Mondelez’s shareholders last week backed a resolution calling for the company to conduct an independent study of the risks of continuing to do business in Russia, according to a company filing.

    Norges Bank, Mondelez’s 11th-largest shareholder according to LSEG’s Eikon, backed the proposal, according to the fund’s disclosures. The fund said in the disclosure that when a company “does not meet our needs as a financial investor, we will consider supporting a well-founded shareholder proposal.”

    Key Details of the Resumption (As of Mid-2024):

    • Location: The plant is located in Trostyanets, Sumy region.
    • Status: The factory was fully rebuilt after sustaining significant damage in early 2022.
    • Production: The facility, which partially reopened in 2023 for chocolate production, began producing Oreo cookies and other snacks again for the Ukrainian market and export, excluding Russia.
    • Import Status: During the repair period, Mondelez had imported Oreo products into Ukraine.

    Context

    Oreos, a chocolate wafer with a creamy vanilla filling, are one of Mondelez’s biggest brands, with sales of about $4 billion last year, according to a statement by CEO Dirk Van de Put. Other leading Mondelez brands include Milka and Cadbury chocolate.

    According to the company’s report, just over 30% of Mondelez shareholders in May supported a resolution calling on the company to conduct an independent study of the risks of continuing to do business in Russia.

    In late May 2023, the National Anti-Corruption Agency added Mondelez International to the list of international war sponsors. The company is represented in the Russian market by Mondelez Rus LLC, which has three plants: the Bolshevik factory, which produces Yubileynoye cookies, OREO, Medvezhonok Barny and TUC crackers, a production plant in Pokrov (Alpen Gold chocolate, Vozdushny, Milka and Picnic bar), and a plant in Veliky Novgorod (Dirol chewing gum and Halls lollipops).

    According to the results of last year, the profit of the Russian branch of Mondelez International amounted to $339 million, and revenue was over $1 billion. The company replenished the Russian budget with over $61 million in taxes.

    Avatar photo
    Alla Kostenko

    Since 2010, she has been working in the Executive Committee of the Trostyanets City Council. During several terms, she was repeatedly elected as the Managing Affairs Officer (Secretary) of the Executive Committee. This shows a high level of professional trust, work efficiency, and authority among the staff of the city council, members of the executive committee, deputies, and community leadership.
    She has two higher educations: she graduated from the National Technical University “Kharkiv Polytechnic Institute” with a degree in Marketing, and from Simon Kuznets Kharkiv National University of Economics with a degree in Public Management and Administration. This provided her with strong knowledge in management, communication, human resources policy, and strategic planning.
    Over the years, she has shown herself as a responsible, systematic, and professional manager who is able to ensure effective coordination of executive bodies, organization of the city council’s work, and stable functioning of administrative processes. She pays great attention to the development of staff potential, building a professional team, improving executive discipline, and introducing modern approaches to personnel management. In her professional activity, she combines strategic thinking, organization skills, a practical approach, and a deep understanding of the community’s needs.

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