Keep Factually independent
Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.
Fact check: What is the current status of Jacobs Douwe Egberts’ business comnection with Russia?
1. Summary of the results
JDE Peet's continues to maintain significant business operations in Russia while making selective adjustments to their presence. Specifically, the company:
- Will phase out foreign coffee and tea brands by the end of the year [1]
- Continues selling local brands and maintaining business operations [2]
- Has increased its revenue in Russia in 2022 compared to 2021 [2]
- Has stopped new capital investments and cancelled cash dividend payments from Russian operations [2]
- Continues paying taxes to the Russian government [2]
2. Missing context/alternative viewpoints
The situation presents several important contextual elements:
- CEO Fabien Simon justifies the continued presence by arguing that tea and coffee are essential supplies that Russians should have access to [3]
- There is significant political opposition to JDE's position, particularly from Dutch politicians, with CDA and D66 MPs calling for boycotts of the company within the parliamentary complex [3]
- The company claims to be adhering to all international sanctions while maintaining operations [3]
3. Potential misinformation/bias in the original statement
The original question's simplicity could lead to oversimplified answers. Several stakeholders have different interests:
*Benefits from continued operations:
- JDE Peet's shareholders benefit from continued revenue streams and market presence
- Russian government benefits from continued tax revenue and business presence of major international brands
- Local Russian employees maintain their jobs
Benefits from complete withdrawal:*
- Western politicians gain political capital from taking strong anti-Russia stances
- JDE's competitors could potentially gain market share in other markets by appearing more ethically aligned with Western positions
The reality is more complex than a simple "business as usual" or "complete withdrawal" scenario, with the company taking a middle-ground approach of selective scaling back while maintaining core operations [2].