Nestlé, Lavazza, Starbucks withdraw from Russia

Nestlé withdraws from Russia

Nestlé has halted imports of Nespresso products to Russia, prompting hours-long queues at the Moscow Nespresso store as consumers rush to secure the limited in-country supply.

The move means Nestlé has joined international giants Lavazza and Starbucks in pausing coffee supply to Russia, as the Russia-Ukrainian conflict enters its third week with no signs of resolution.

Reuters reports coffee traders across Europe and Southeast Asia are scrambling to redirect shipments already bound for Russia and the Ukraine, as port closures continue, and sanctions tighten.

The world’s three largest shipping container lines, MSC, Maersk and CMA CGM, have all suspended shipments to and from Russia, leaving the future of existing trade contracts in doubt.

Russia is the fourth-largest coffee importer in the world, and accounts for nearly 4 per cent of the world’s coffee consumption.

A Coffee Market Report for February 2022, published by the International Coffee Organisation (ICO), found the average New York and London futures market prices for coffee fell by 3.1 per cent.

The report highlights the potential for sanctions on Russia to increase input costs for coffee farmers, as Russian exports supply 20% of the world’s seaborne ammonia.

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