11 Mar 2022 17:15

Nestle suspending Nespresso deliveries to Russia

MOSCOW. March 11 (Interfax) - Switzerland's Nestle, one of the world leaders in the production of food and beverages, has suspended deliveries of products to Russia, with the exception of essential products such as baby food, cereals, specialty foods and therapeutic pet food, the company said in a statement.

As an example, the company cited Nespresso (home-use automatic capsule coffee machines and coffee pods for them).

Furthermore, Nestle is suspending exports of its products from Russia (except for essential products, such as baby food, to CIS countries).

Earlier the company announced that it was suspending its investments in Russia and refusing to advertise in this country. At the same time, Nestle's Russian factories continue to operate normally.

"As a food company and employer, we also have a responsibility toward the people in Russia and our more than 7,000 employees - most of whom are locals. We will continue to ensure a reliable supply of safe and essential food products to the local people in the country," the company said in a statement.

Nestle owns seven production sites in Russia. Over its years of operation in Russia, the company has invested $2.3 billion in local production. In 2020, it announced a further investment plan for 2021-2023 - almost 26 billion rubles.

According to the SPARK-Interfax system, Nestlé Russia LLC's revenue to RAS in 2020 grew by 12.7%, to 165.77 billion rubles. Net profit jumped 89.9% to 9.63 billion rubles. In 2020, the company allocated 7.49 billion rubles to pay dividends and other profit distribution payments to shareholders (no payments were made in 2019).