McDonald’s, Starbucks, Coca Cola
Fast-food giants stop doing business in Russia
03/09/2022, 07:15 am
The consequences of the economic sanctions against Russia are spreading. Four traditional US brands are withdrawing from the Russian market. McDonald’s alone is closing more than 800 branches, and more than 60,000 people are out of work.
Since the invasion of Ukraine, many companies have stopped doing business in Russia – whether in protest or because of the sanctions. 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: the US companies McDonald’s, Starbucks and Coca-Cola announced that they would stop operations in Russia for the time being. Pepsico also wants to severely limit 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 been selling its products in Russia for more than 60 years and posts around four percent of its group-wide sales 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. The company employs 62,000 people in Russia. So far, the world’s largest fast-food company has kept a low profile on the war in Ukraine, but now CEO Chris Kempczinski has taken a stand. Because of the company’s values, “one cannot ignore the unnecessary 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.
Pepsico makes exceptions
Starbucks, the world’s largest café chain, is also stopping operations in Russia in view of the Russian war of aggression. “We have decided to suspend all business activities in Russia,” announced 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 wants to severely limit its business in Russia, but not give it up entirely. The company said it would temporarily suspend the sale and manufacture of soft drinks like 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. Pepsico has a “humanitarian” responsibility to fulfill here.