Following other companies, Pepsi and Coca-Cola said Tuesday they would stop doing business in Russia because of the country’s invasion of Ukraine.
“The Coca-Cola Corporation announced today that it will cease operations in Russia,” the company acknowledged in a statement.
“Our hearts go out to the individuals who are facing horrible consequences of the sad events in Ukraine. We will watch and analyze the situation as events unfold.”
⚡️ Coca-Cola suspends business in Russia.
Following international pressure to withdraw from the Russian market, the company announced that it will temporarily suspend its business in the country.
— The Kyiv Independent (@KyivIndependent) March 8, 2022
The impact on each business will be different.
Coca-Cola And PepsiCo
According to CNBC, “Coke stated in a regulatory filing that its operations in Ukraine and Russia generated around 1% to 2% of its consolidated net operating income and net earnings in 2021.”
“Pepsi, on the other hand, produces around 4% of its yearly income in Russia, and it is not ceasing all operations in the country.”
CEO Ramon Laguarta wrote to PepsiCo colleagues, notifying them of the suspension of Pepsi-Cola and its global beverage businesses in Russia, such as 7Up and Mirinda.
Additionally, they will cease all capital investments and promotional operations in Russia.
Businesses from all across the globe have responded to the Ukraine situation.
A list put together by Yale Professor Jeffrey Sonnenfeld has been getting a lot of attention because it tracks how businesses in Russia are linked.
Coca-Cola announced Tuesday it is stopping “some activities in Russia.”
McDonald’s and Starbucks
McDonald’s stated Tuesday that it will temporarily close 850 outlets in Russia, citing “the terrible human agony unfolding in Ukraine.”
McDonald’s CEO Chris Kempczinski acknowledged in a letter to McDonald’s workers and franchisees that “McDonald’s has chosen to temporarily suspend all of our locations in Russia and halt all operations in the region.”
He noted the company immediately gave financial assistance to its personnel in Ukraine. Those who work for them in Ukraine will get full pay.
They’ve given $5 million to an Employee Assistance Fund, and they’re helping with humanitarian aid in the region led by the International Red Cross.
He also stated all McDonald’s employees in Russia would continue to be paid their salaries. Ronald McDonald House Charities (RMHC) will keep working in Russia, just like Ukraine. They will work with local hospitals and help people in need all over the country.
McDonald’s has been getting a lot of attention recently because they didn’t speak out against the conflict and had a lot of business in Russia.
@McDonalds , are you crazy?? Responsibility means nothing to you?? What are you doing in Russia then? Those people keep saying they hate everything from the US. Are you waiting for them to launch hateful campaigns to stop #MacDonald’s on their land? You will see… pic.twitter.com/d1qwLewwuj
— pooja shah (@shAh__pOOOja) March 4, 2022
Consumers are looking to other large chains for some nearby sites in Russia.
Yum Brands announced a halt to restaurant expansion and investment in the United States, according to CNBC. KFC operates around 1,000 outlets in Russia, accounting for approximately 2% of total system sales.
Additionally, Starbucks has around 130 shops in Russia and Ukraine, entirely owned and managed by licensing partners.
He said on Tuesday, “We are still watching the sad events in Russia.”
As a result, Starbucks decided to stop all commercial activities in the country, which includes the distribution of all Starbucks goods, as well as the opening of new stores.