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Kellogg Divests Russian Operations To Local Snacks Maker Chernogolovka

Kellogg Co. said on Thursday that it has decided to divest its operations in Russia to local snacks and drinks maker Chernogolovka as the company joins a long list of Western brands pulling out of the country.

The Corn Flakes maker earlier this year suspended all imports of its products in Russia and pulled investments including advertising and promotions in the country, following Moscow's invasion of Ukraine.

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.

Read More: Kellogg Reports Strong Q2 Results, Raises Full-Year Outlook

About Chernogolovka

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, which has also started supplying soft drinks to the Russian outlets of Burger King and KFC in April, said it has signed a binding agreement with Kellogg.

Western Companies

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.

The sale is subject to a number of local government regulatory approvals, the company said.

Read More: Kellogg Taps Company Veteran To Head Cereal Business Spinoff

News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.

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Enjoy the most important stories from the world of Irish grocery retail, curated for you by our team of experts every week.
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