Kellogg Sells Russian Operations to Local Company
Kellogg announced it will divest its operations in Russia to local snacks and drinks maker Chernogolovka, Reuters reports. The company joins a long list of Western brands pulling out of the country following Russia’s invasion of Ukraine in 2022.
Earlier this year, the company had already suspended all imports of its products in Russia and pulled investments including advertising and promotions in the country.
The Kellogg business in Russia currently represents less than 1% of the company’s total net sales, a company spokesperson said, adding that sustaining its operations there has now become untenable.
Founded in 1998, Chernogolovka makes snacks, energy drinks, and bottled water, and has been producing Cola Chernogolovka since May, following the suspension of sales in Russia by soda giants Coca-Cola and PepsiCo.
Chernogolovka said it has signed a binding agreement with Kellogg.
Kellogg, also known for its Pop-Tarts and Pringles snacks, joins a list of Western companies that have sold their Russian assets to comply with sanctions imposed on Moscow over the Ukraine conflict.