Kellogg Divesting Russian Operations to Local Company

Dec. 23, 2022
New owner will be snacks and drinks maker Chernogolovka.

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.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.

Sponsored Recommendations

F&B Manufacturer Implements Powerful Cybersecurity

A leading F&B manufacturer has moved to harness the skills of Rockwell Automation and Claroty to harden their OT and IT defences.

6 Ways to Augment Your Food and Beverage Workforce

Modern digital tools and technologies help attract, retain and empower a modern workforce.

2024 Manufacturing Trends - Unpacking AI, Workforce, and Cybersecurity

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

Better OT Asset Management Increases Uptime

A food and beverage company streamlines and simplifies its OT cybersecurity to increase system reliability and uptime.