Criticism of companies that did not do this has recently increased significantly. There were calls for a boycott on the Internet, and investors also got involved. Then it suddenly happened very quickly: On Tuesday afternoon (local time), the US corporations McDonalds, Starbucks and Coca-Cola announced that they would stop operations in Russia for the time being. PepsiCo also wants to severely restrict its business.
Four major Western brands, some of which have also shaped Russia for decades, are signing off in one fell swoop. McDonald’s opened its first branch in Moscow before the Iron Curtain finally fell and the Soviet Union collapsed. Pepsi has even been selling its products in Russia for more than 60 years and posts around four percent of its group-wide revenues there. The rival Coca-Cola is significantly lower one to two percent, but he also has a long tradition in Russia.
McDonald’s is closing its approximately 850 branches in Russia until further notice. So far, the world’s largest fast-food company had kept a low profile on the war in Ukraine, but now CEO Chris Kempczinski took a stand. Because of the company’s values, “one cannot ignore the needless human suffering that is happening in Ukraine,” he said in an email to employees. The shutdown is necessary, even though McDonald’s has been in Russia for over 30 years and serves millions of customers there every day.
Starbucks, the world’s largest coffee shop chain, is also halting operations in Russia in view of the Russian war of aggression. “We have decided to suspend all business activities in Russia,” said Starbucks CEO Kevin Johnson in a letter to employees. According to analysts, Starbucks has around 130 stores in Russia operated by licensees. Starbucks boss Johnson had already condemned Russia’s attack on Ukraine on Friday as appalling.
The US beverage and food company Pepsico intends to severely limit its business in Russia, but not give it up entirely. The company announced on Tuesday that it would temporarily suspend the sale and manufacture of soft drinks such as Pepsi, 7Up and Mirinda. In addition, Pepsico will stop investments and all advertising and marketing activities in Russia. However, the group wants to continue to offer everyday items, such as dairy products or baby food, said CEO Ramon Laguarta. Here Pepsico has a “humanitarian” responsibility to fulfill.
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