Jacobs coffee producer will stop selling Western brands in Russia and switch to local brands
The company is not going to leave Russia
The Dutch manufacturer JDE Peet's (Jacobs, L'Or, Tassimo, Douwe Egberts, Pickwick, Senseo, Maxwell House, etc.) said in a report that since February 2022 it has been doing everything possible to ensure that its Russian subsidiary "operates as an independent business as far as possible" and monitors compliance with sanctions.
As a further measure, JDE Peet's has decided to stop selling goods under foreign brands, which will be replaced by local brands by the end of 2023.
Source. Reuters
The "rebranding" of Jacobs coffee has already led to "non-cash losses" in the first half of 2023 in the amount of 185 million euros, and the sale of the new brand is likely to bring "significantly less revenue" in the second half of the year, the document says.
The company does not want to leave Russia, because otherwise "its assets may be nationalized and transferred to third parties." This happened to Danone and Baltika.
It also believes that its products are essential goods, and it "has a moral responsibility" to its employees.
In Russia, the company has two plants with 900 employees in the Leningrad and Novosibirsk regions.
It was reported in March 2023 that JDE Peet's may abandon the use of the flagship Jacobs brand and switch to the Monarch or Milicano brands.
According to a Reuters source, this decision is a logical step that will help protect the company's international reputation.
Background. As reported, Putin has taken away multibillion-dollar assets from Danone and Carlsberg invested in Russian branches.
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