"Our position has not changed. We have no desire to leave Russia. We respect international rules. We're maintaining this position because we have a view to the long-term future of our business." The statement made by Xavier Unkovic, Bonduelle's new CEO, when the family-owned company's annual results were published on Monday, October 2, is unequivocal. However, it does not reflect an isolated position within the food industry. From Lactalis to Bonduelle and Savencia – to mention the French companies – but also Pepsi, Nestlé, Ferrero and Mondelez, many Western multinationals continue to operate in Russia.
Yet the pressure was on after Russian President Vladimir Putin's troops invaded Ukraine in February 2022. Stay or go? There were many calls for companies to take a stand. Agri-food groups used the argument of the need to feed the local population and responsibility towards their employees to justify their continued presence in the country.
Bonduelle was right to defend this view. However, chairman Christophe Bonduelle, recognizing that the situation was difficult to maintain, announced the supervisory board's decision to devote the financial results of sales in Russia to the reconstruction of Ukraine. He added: "It's bad form to make a profit during this period of conflict."
At the close of its 2021-2022 fiscal year, this profit, valued at €1.2 million, has indeed been provisioned. "The situation in Ukraine is not stable. We will invest this sum when conditions allow," said Unkovic. Nevertheless, the scheme has not been renewed for the 2022-2023 financial year. It's a year in which Bonduelle's sales in Russia, driven by its Globus brand, grew by around 10% excluding currency effects, to almost €200 million, accompanied by improved profitability.
For its part, Lactalis has not disclosed its Russian subsidiary's sales figures or profitability. The dairy giant, which has four production sites there and employs 1,900 people, claimed to be continuing "its activities (...) in view of the fact that [it] supplies foodstuffs to civilian populations." "However, numerous measures are being taken to isolate the Russian entities from a management point of view. Lactalis is constantly assessing the evolution of the situation and retains the option to change its position at any time," it added.
Equally discreet, the Savencia group (previously Bongrain) still has a presence in Russia, where it took control of the Belebey company in 2017, known for its traditional Russian cheese brand, Belebeevsky, and specialty cheeses under the Belfor and Belster brands. Italy's Ferrero, which owns a factory and markets its confectionery in Russia, is also keeping a low profile.
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