In recent days, a number of Norwegian companies such as SAS, Norwegian and the hotel chain Strawberry have stopped selling Freia products. It happens after the owner company Mondelez was blacklisted by Ukraine because they are still operating in Russia. – Such a boycott can have a great effect. If many companies take the plunge, and consumers also boycott, it may mean that Mondelez will have to change its behaviour. This is what Professor Helge Thorbjørnsen at NHH tells news. He believes the main value of the boycott is the signaling effect. MCDONALD’S VACUUM: Customers queue at the fast food chain Vkusno-i Toshka in a former McDonald’s restaurant in Moscow. McDonald’s is one of the large Western companies that withdrew from Russia early last year. Photo: Alexander Zemlianichenko / AP Could affect the Russian economy Thorbjørnsen says Freia is a small company, and Norway a small market for Mondelez. – This boycott in itself is unlikely to topple Mondelez or make them change course. At the same time, the boycott can create fear that other brands will be affected. – The fear that this could spread to other countries and other brands is very important. That is where boycotts have an effect, says Thorbjørnsen. Thus, the boycott may actually sting a little for Putin. – It sends a clear signal that all companies with a connection to Russia will be punished. This means that the Russian economy is deteriorating, and tax revenues in Russia are falling, says Thorbjørnsen. According to the Kyiv School of Economics in Ukraine, Mondelez paid approximately NOK 1.8 billion in taxes to Russia last year. ALSO BLACKLISTED: The shampoo brand Head & shoulders is also blacklisted by Ukraine because of the owner company Procter & Gamble’s operations in Russia. Photo: Paul Sakuma / AP – Works selectively Thorbjørnsen believes there is a high chance that the boycott will be extended to other countries, brands and companies. It is not only Freia that is among the blacklisted companies, he points out. – This boycott, which only affects Freia, seems a bit selective and not thought through in principle. In addition to Freia owner Mondelez, companies such as Bonduelle, Procter & Gamble and Yves Rocher have found their way onto the list. Chocolate from Toblerone is also blacklisted by Ukraine. Photo: JUSTIN SULLIVAN / AFP Mondelez, in turn, owns well-known brands such as Cadbury, Côte d’Or, Daim, Toblerone, Oreo, Ritz, Tuc and Philadelphia. The list of products that can be boycotted on the same basis as Freia is long, Thorbjørnsen believes: – You have a wide range of brands that consumers in Norway buy and are exposed to every day. They are not taken out. Thus, it is likely that the consumers and companies that have already joined the boycott will expand rather than withdraw, the NHH professor believes. Mondelez CEO: – A big problem – I want to make it very clear that on behalf of everyone who works here at Freia, we really hate the actions that the Russian government is taking in Ukraine. We look at those events from here with dismay, says Chris Callanan, managing director of Mondelez Norway and Denmark, to news. He says that the issue is very complicated. – Me and the management at Mondelez and Freia have never had to deal with such a difficult situation as the one that has arisen with the war in Ukraine. We have had to consider what will happen to our 3,000 colleagues in Russia. LET THE PEOPLE DECIDE: Prime Minister Jonas Gahr Støre (Ap) lets consumers decide for themselves how far they want to participate in a boycott. Photo: Mats Rønning / news Støre: – Must be up to the people Several Freia employees have feared for their jobs because of the boycotts. – I think it is the wrong focus to sanction Freia. We have nothing to do with the factories in Russia, neither in terms of chocolate nor finances. The boycotts go beyond Freia, Norway and Norwegian workplaces, said Freia employee Jon-Inge Andy Sogn to news last week. Prime Minister Jonas Gahr Støre (Ap) believes it must be up to the people if they wanted to boycott the products. – When it comes to which products people buy, it must be up to people’s own decisions, says Støre to news. He nevertheless says that the government will ensure that the adopted sanctions against Russia are followed: – We must ensure that they are followed to the letter. That is our responsibility, says the Prime Minister. WILL TREAT EVERYONE EQUALLY: Several of the large grocery chains in Norway, such as Coop, tell news that they are considering the boycott situation. It is important for them not to hit individual companies unfairly, the companies state. Photo: Arne Flatin / news The grocery chains consider The largest sales areas for Mondelez and Freia products have not yet thrown themselves into the boycott. Grocery supplier Oda says they have the matter on the agenda. – We will follow up with Mondelez and other players where this is relevant. In this context, it is important to think about equal treatment, as it is not only Freia that has an owner who is present in Russia, says director of communications at Oda, Liselotte Lunde to news. The grocery chain Coop says they have not made a decision yet. – First, we must be absolutely sure that the choice we make is the right one. This case involves more suppliers than Freia, and will have consequences for many Norwegian workers, says director of communications at Coop, Bjørn Takle Friis. He says Coop has asked the government for a principled clarification: – That is precisely why we have asked the authorities for a principled clarification and some clear framework for how these situations should be handled before we make a decision. Norgesgruppen also writes to news that they are in dialogue with Mondelez, and make “thorough, ongoing assessments”.
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– Clear signal – news Norway – Overview of news from different parts of the country
