|Posted by JJ The Psychotherapist on March 8, 2022 at 7:05 PM|
PepsiCo and Coca-Cola joined other firms in declaring Tuesday that they would cease operations in Russia due to the country's invasion of neighboring Ukraine.
"The Coca-Cola Company announced today that it is suspending its operations in Russia," Coca-Cola said in a statement. "Our hearts go out to the people of Ukraine who are suffering unconscionable consequences as a result of these tragic events." We will continue to watch and analyze the situation as events unfold."
The impact will be felt differently by each organization.
According to CNBC, "Coke said in a regulatory filing that its business in Ukraine and Russia contributed about 1% to 2% of its consolidated net operating revenue and operating income in 2021." Pepsi, on the other hand, derives around 4% of its yearly income in Russia, while not suspending all operations in the nation."
"Given the horrific events in Ukraine, we are announcing the suspension of the sale of Pepsi-Cola and our global beverage brands in Russia, including 7Up and Mirinda," CEO Ramon Laguarta wrote to PepsiCo workers. We would also halt all financial investments as well as all advertising and promotional efforts in Russia."
"As a food and beverage company, we must stay true to the humanitarian aspect of our business now more than ever," Laguarta said, adding that the company has "a responsibility to continue to offer our other products in Russia, including daily essentials such as milk and other dairy offerings, baby formula and baby food."
Companies from all across the world have reacted to the situation in Ukraine. A list produced by Yale Professor Jeffrey Sonnenfeld has garnered a lot of attention since it records information about the status of corporations' economic partnerships in Russia.
The list stated on Tuesday that Coca-Cola is stopping "certain operations in Russia."
According to The Daily Wire, McDonald's stated on Tuesday that it will temporarily down 850 of its outlets in Russia, citing "the needless human suffering unfolding in Ukraine."
CEO Chris Kempczinski said in a letter to McDonald's workers and franchisees, "McDonald's has decided to temporarily close all our restaurants in Russia and pause all operations in the market."
"The Company has provided immediate financial support to our team in Ukraine," he continued. We continue to pay full salaries to our Ukrainian employees, have provided $5 million to our Employee Assistance Fund, and will continue to assist humanitarian operations in the region headed by the International Red Cross."
He also stated that all McDonald's employees in Russia will continue to be paid. The Ronald McDonald House Charities (RMHC) in Russia will continue to operate fully, "just as RMHC Ukraine is partnering with local hospitals and providing humanitarian aid across the country."
McDonald's has recently come under fire for failing to speak out against the conflict while maintaining a sizable business in Russia.
Consumers are looking to other large brands when some decide to close locations in Russia.
Yum Brands declared that it will halt restaurant expansion and investment in the nation. According to CNBC, "the KFC owner has over 1,000 restaurants in Russia that account for roughly 2% of its systemwide sales."
Starbucks also operates over 130 shops in Russia and Ukraine that are entirely owned and operated by a licensed partner. Starbucks CEO Kevin Johnson stated on Tuesday that the firm is still "watching the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products."