Last year, Mondelez, Mars Inc. and PepsiCo Inc. had an impressive performance in the Russian market, highlighting the strength of the local consumer, even after the invasion of Ukraine, ordered by the country's president, Vladimir Putin.
As indicated by a recent document filed with the Russian tax authority, sales of 'Mondelez Rus', known for its biscuits Jubilee and Alpen Gold chocolates, recorded a significant increase of 38%, reaching US$ 1.1 billion in the last year, following accounting standards locations.
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The chocolate manufacturer Cadbury, which is part of the Mondelez group, achieved even more expressive growth in its overall profit compared to the year 2020, more than doubling its earnings.
According to Mondelez's annual report, the company's profitability has increased in Russia due to several factors including higher prices, sales volume growth and the suspension of advertising.
These elements contributed to Mondelez's positive financial performance in the Russian market. Furthermore, the report mentions that Russia accounted for approximately 4% of Mondelez's consolidated revenue last year.
Mars, which entered the Russian market in the early 1990s, has seen remarkable sales growth over the past year.
According to available information, Mars sales in Russia increased by 14%, amounting to 177 billion rubles.
The company saw a significant increase in its profits, with a growth of 58%, totaling 27 billion rubles.
It is correct to say that companies like Mondelez, Mars Inc. and PepsiCo, being of US origin, continued to operate in Russia as they are not subject to trade sanctions.
However, these companies announced that they would focus primarily on selling products deemed “essential” amidst the outrage generated by Putin’s intervention in Ukraine.
It is true that some major players in the global food and beverage industry have reduced their operations in Russia, but it's important to note that few major brands have actually completely disappeared from the Marketplace.
An example is Coca-Cola, which ended its direct operations in Russia, but its products can still be imported from other countries to meet the demand of Russian consumers.
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