Jacobs and other famous brands will disappear in Russia: what is happening
The Dutch company JDE Peet's, which includes Jacobs, L'Or, Tassimo and Douwe Egberts coffee brands, will finish selling foreign coffee and tea brands on the Russian market by the end of the year. At the same time, the work in the Russian Federation will continue.
This became known from the financial report of the company for the first half of 2023. Local brands will remain in Russia. "In the first half of 2023, we initiated a transition from a multichannel organization in Europe to a local portfolio in Russia. We will expand our consumer reach globally with plans to acquire the Marat coffee & tea platform in Brazil and the launch of L'OR Barista in the US," JDE CEO Fabien Simon said. His words are quoted in the report.
It should be noted that last June, while Russia was continuing the largest invasion war since World War II, Dutch company Jacobs Douwe Egberts was expanding its production on the territory of the aggressor country. Jacobs Douwe Egberts Rus (a subsidiary of the Russian company) commissioned a 5,800-square-foot production building in the Leningrad region. While competitors were leaving the aggressor country, Jacobs was expanding.
As a result, 2022 became the best financial year for the Russian subsidiary. Its turnover amounted to 42.6 billion rubles (UAH 17.5 billion). The Dutch company is part of the American Mondelez International. The National Agency for Anti-Corruption (NACC) put them on the list of war sponsors. According to the agency's calculations, the company paid $61 million to the Russian budget in taxes last year alone. This led to a boycott of the company's products in Sweden and Norway.
According to Russian media, Jacobs Dow Egberts Rus is thinking about calling the coffee Monarch or Milicano anstead of Jacods. There is no final decision yet. However, to continue to earn on the Russian market without harming their reputation, they plan to create an independent brand.
As reported by OBOZREVATEL, the UK has expanded sanctions against Russia. Another 13 people, including officials involved in the abduction and deportation of Ukrainian children, were introduced to the list of personal restrictions.The Artek Children's Center in temporarily occupied Crimea was added to the list for the same reason.