by Richa Naidu
LONDON, March 23 (Reuters) – Nestlé announced on Wednesday that the group would stop marketing several of its non-essential brands in Russia, including KitKat and Nesquik, in an unprecedented move following pressure on the world’s largest luxury goods company. consumption in the world following criticism from Ukrainian President Volodimir Zelensky.
Nestle shares were down 1.3% around 1:36 p.m., after hitting their session low shortly after the group’s announcement. The statement was unusual for the maker of Maggi broth and Nescafé coffee, which has continued to operate in war zones around the world for decades.
This weekend, President Zelensky blamed several companies for staying in Russia after his invasion of Ukraine and accused Nestlé of not living up to its “Good Food, Good Life” slogan.
In the days leading up to his comments, Nestlé had already faced criticism online from shoppers, activists, investors and political figures.
The company previously said it had halted non-essential exports and imports from Russia, ceased all advertising and suspended capital investment. She also said that she does not make profits in Russia.
“We stand with the Ukrainian people and our 5,800 employees there,” Nestlé said, adding that the group would continue to pay its Russian employees.
The Swiss agribusiness giant has faced criticism for years over issues such as the manufacture of bottled water, its decision to stay in South Africa during apartheid and its formula marketing practices.
Influencer Amee Vanderpool, who has nearly 350,000 Twitter followers, posted on Sunday that “Nestlé refuses to withdraw from Russia, even after a desperate plea from Ukraine and President Zelensky.” The post encouraged product boycotts and included a list of Nestlé brands.
The company has also been denounced by some Ukrainian politicians as well as the “hacktivist” group “Anonymous”, which has also incited a boycott of its products.
“By refusing to cease business activities in Russia, @Nestle allows Russia’s war of aggression in Europe to continue,” Ukrainian Foreign Minister Dmitro Ivanovich Kuleba, who has more than 742,000 followers, tweeted on Thursday. the website.
“The long-term damage to the company’s reputation is commensurate with the scale of Russian war crimes in Ukraine (huge). It’s not too late to change your mind, Nestlé.”
The French group Danone for its part announced in early March the suspension of all its investment projects in Russia, where it nevertheless maintained the production and distribution of fresh dairy products and infant nutrition. (French version Elena Vardon)