The mood in the City is turning sour. Mondelez, the American confectionary giant that owns Cadbury, is facing a shareholder revolt. UK investors are demanding an exit from Russia. The reason? Mondelez is still operating there. Still paying taxes to Moscow. Still, in effect, funding Putin’s war machine.
This is not a fringe campaign. Legal & General Investment Management, one of the biggest names in the Square Mile, has tabled a resolution. It wants Mondelez to review its presence in Russia. To consider a sale. To stop what critics call “blood chocolate.”
The resolution has backing. Several pension funds have signed on. The pressure is mounting. Mondelez’s response has been defensive. They say they have reduced operations. They claim they are only providing essential food. But the numbers tell a different story. Revenue in Russia actually rose last year. Profits too.
Behind the scenes, there is anger. Whitehall sources tell me the government is watching closely. Ministers are uneasy. They don’t want to be seen as soft on Russia. But they also don’t want to pick a fight with a major employer. Cadbury employs thousands in the UK. Bournville is a sacred cow.
Yet the moral calculus is shifting. Since the invasion, over 1,000 companies have left Russia. Those who stayed are being ostracised. Mondelez is now in the crosshairs. The resolution, filed for the AGM in May, is a test. If it passes, it will send a signal. No company can hide behind chocolate.
There is a political dimension too. Labour is circling. Shadow ministers have called for tougher sanctions. They want companies like Mondelez to be named and shamed. The government is caught. They don’t want to be outflanked on Ukraine. But they also fear a backlash from business.
Inside the Treasury, there is a debate. Some officials argue that forcing companies out is counterproductive. It hands assets to the Kremlin. Others say staying is complicity. The resolution will force a choice.
For Mondelez, the stakes are high. A defeat would be embarrassing. It would also open the door to more activism. Already, other funds are watching. If this works, they will target other holdouts.
The bottom line: this is a story about power. Investors using their leverage. Politicians playing catch-up. And a company trying to have its cake and eat it. But in a war, there is no neutral ground. Mondelez is learning that the hard way.
I’ll be tracking the vote. The numbers. The whispers. The fallout. This is not going away.
