Dive Brief:
- The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) has expanded its "Check the Label" campaign to encourage a boycott of Mexican-made Nabisco products at colleges and universities nationwide, according to a news release.
- BCTGM launched the boycott following Mondelez's decision to expand Oreo production at its facility in Salinas, Mexico, which led to the loss of hundreds of factory jobs in Chicago.
- In August, Mondelez responded to an outcry from former employees and protesters by rehiring about 100 of the 320 employees the company laid off from the Chicago factory in March, the Chicago Tribune reported.
Dive Insight:
Mondelez's PR challenges began when the company announced in July 2015 that it would lay off about half of its 1,200 Chicago-based Nabisco plant employees. The company began the layoffs in March, and they are set to continue over the next year.
This boycott may not have a significant impact on U.S. Oreo sales. But if the Chicago situation becomes more visible, Mondelez may further scale back its initial commitment to laying off half the Chicago factory's employees.
The backlash Mondelez has faced also includes a lawsuit the BCTGM filed in January, claiming discrimination and violation of a collective bargaining agreement. Dozens of protestors also gathered outside of Mondelez's annual meeting in May, where CEO Irene Rosenfeld fielded questions and publicly defended the company's decision to send the $130 million manufacturing equipment investment to Mexico instead of Chicago.