An employee at a Burger King restaurant prepares a Coca-Cola order in Moscow, Russia on January 21, 2010.
Denis Sinyakov | Reuters
PepsiCo, Coca-Cola and Starbucks said Tuesday they are suspending operations in Russia following the country’s invasion of Ukraine, joining McDonald’s and a host of other US corporations.
“Our hearts go out to the people who are experiencing the incredible consequences of these tragic events in Ukraine,” Coke said in a brief statement Tuesday afternoon. “We will continue to monitor and evaluate the situation as circumstances develop.”
Like McDonald’s, Coke has come under pressure in recent days to stop operating in Russia. However, the market is one of the few regions in the world where competitor PepsiCo has a wider presence. In a regulatory filing, Coke said its businesses in Ukraine and Russia generated between 1% and 2% of its consolidated net operating revenue and operating profit in 2021.
Pepsi, on the other hand, is not shutting down all of its Russian business. The company will continue to sell some essential goods in Russia, such as infant formula, milk and baby food.
“As a food and beverage company, now more than ever, we must stay true to the humanitarian aspect of our business,” PepsiCo CEO Ramon Laguarta wrote in a memo to employees.
However, sales of its Pepsi-Cola, 7Up and Mirinda brands will be suspended along with capital investments and all promotional activities in Russia.
Both McDonald’s and Starbucks have announced the temporary closure of their Russian restaurants. Of the two restaurant companies, McDonald’s has the larger presence in the country and derives a higher percentage of its global revenue from those sales.
Starbucks has gone further than McDonald’s by saying that all activities in Russia have been suspended, including shipments of its products.
Since the Russian invasion of Crimea in 2014, many US companies have sought to reduce their presence in both Russia and Ukraine.
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