Kellogg Co said on Dec. 22 it will divest its operations in Russia to local snacks and drinks maker Chernogolovka as the American cereal company joins a long list of Western brands pulling out of the country, according to a Reuters report.
Financial and other details of the transaction were not reported.
Earlier this year, as Russia invaded Ukraine, Kellogg joined the list of food and beverage companies seeking to end operations in Russia. The company stopped importing products from Russia and pulled investments including advertising and promotions in the country.
The Kellogg business in Russia currently represents less than 1% of the company's total sales, a company spokesperson told Reuters, adding that it has become increasingly difficult to sustain its operations there.
Founded in 1998, Chernogolovka makes snacks, energy drinks, and bottled water, according to Reuters, and has been producing Cola Chernogolovka since May, following the suspension of sales in Russia by soda giants Coca-Cola and PepsiCo.
The sale remains subject to a number of local government regulatory approvals.
