Coca-Cola, Pepsi, McDonald’s, Starbucks close shops in Russia

Pressure is mounting on the Russians as more multinational companies desert the Russian market in protests to Putin’s troop’s invasion of Ukraine on February 24, 2022.

The latest to join the list of companies leaving the country include PepsiCo, Coca-Cola, McDonald’s and Starbucks, all of which are US companies, according to a report by CNBC.

The companies each announced on Tuesday, March 8, 2022, that they are suspending businesses in Russia after that country’s aggression in Ukraine.

Pepsi has operated in Russia for more than 60 years. McDonald’s started operating when Russia was under the Soviet Union in Moscow, a few months before the collapse of the Union.

Recently, Pepsi. Coca-Cola, McDonald’s and Starbuck have been criticised for continuing to do business in Russia while other US companies reported suspension or paused operations.

A Professor at Yale, Jeffrey Sonnenfeld made a list of US companies that have left Russia and those that are still operating following President Putin’s war in Ukraine.

What the companies are saying

Coca-Cola in a statement said their hearts are with Russians who are enduring unconscionable effects from the sad events in Ukraine. The company said it will continue to observe and evaluate the situation as situations evolve.

Russia is one of the few regions in the world where Coca-Cola’s archrival, Pepsi has a larger market share. In a stock filing, Coca-Cola said its business in Ukraine and Russia contribute about 1 to 2 per cent of its net operating income in 2021.

Pepsi is making a kill in Russia

In contrast, Pepsi makes roughly 4 per cent of its yearly income in Russia. The company is not stopping all its business in that country. According to Pepsi, it will keep selling some important products like baby food, milk and baby formula.

It is only halting the sale of its Pepsi-Cola, 7UP and Mirinda brands, along with major investments and all promotional activities.

Pepsi CEO, Ramon Laguarta said in a memo to employees that the company is staying true to the humanitarian aspect of its business.

Reports emerged earlier on Tuesday saying Pepsi was weighing the option of writing off its value in Russia.

850 McDonald’s outlets closed

McDonald’s said on Tuesday that all its 850 outlets in Russia would temporarily shut down.

The company owns about 84 per cent of outlets in Russia while the rest are owned by Franchisees.

Starbucks said it would stop all Russian business activity as well as the shipment of its items.

McDonald’s has a bigger presence in Russia and gets a higher percentage of its global income from those sales.

Apple, others stop the sale of iPhone, iMac, Dell, others in Russia

The latest is tech giant, Apple which has stopped selling all its products in Russia. The firm announced the decision on Tuesday, March 1, 2022, after Russia began its invasion in Ukraine, CNBC reports.

Apple does not have a physical presence in Russia but sells its products online through storefronts. All storefronts selling Apple products in Russia are listed as unavailable.


Categories: Breaking News,Business,News,World

Leave A Reply

Your email address will not be published.