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Nestle to suspend many products in Russia including KitKat

Boxes of cereal manufactured by Nestle in a Russian supermarket
Boxes of cereal manufactured by Nestle in a Russian supermarket

Nestle said today it will halt the sale of several non-essential products including KitKat bars and Nesquik chocolate mix in Russia, in an unprecedented move amid pressure on the world's top consumer goods company after criticism from Ukrainian President Volodymyr Zelenskiy.

The statement was unusual for the maker of Maggi bouillon and Nescafe coffee, which has for decades continued to operate in war zones around the world.

The brands Nestle is suspending make up the "vast majority of volume and sales" in Russia, which were 1.7 billion Swiss francs ($1.82 billion) in 2021, a spokesperson said.

Production of these items will also come to a halt.

Zelenskiy over the weekend called out several companies for staying in Russia after its invasion of Ukraine and accused Nestle of not living up to its "Good Food, Good Life" slogan.

In the days leading up to his comments, Nestle had already been fielding online criticism from shoppers, activists, investors and political figures.

The company previously said it had halted non-essential exports and imports from Russia, stopped all advertising, and suspended capital investment. It also said it was not making a profit in Russia.

"We stand with the people of Ukraine and our 5,800 employees there," Nestle said. It said it would continue to pay Russian employees.

Western companies that maintain a presence in Russia to provide essential goods such as food and medicine have been trying to strike a balance between President Vladimir Putin's government and advocates for Ukraine pulling them in opposite directions.

More than 400 companies have withdrawn from Russia since the launch of its attack on Ukraine on February 24, leaving behind assets worth hundreds of billions of dollars in aggregate.

PepsiCo, Unilever and Procter & Gamble have also said they would retain a presence in Russia to provide essential goods.

Nestle has for decades been a target of criticism by activist groups and governments over issues including the company's bottled-water manufacturing, its decision to stay in South Africa during apartheid, and its baby formula marketing practices.

"There's a history of protesting against Nestle," said Jaideep Prabhu, a professor of marketing at the University of Cambridge's Judge Business School.

"Nestle is much more front and centre than P&G and Unilever when it comes to people knowing that they make their products...Nestle's logos are very prominent on its products," the professor added.