McDonald’s, Starbucks, PepsiCo, Coca-Cola Suspend Business In Russia

In the wake of the deepening Russia-Ukraine crisis, several major American food and beverage companies suspend their businesses in Russia. The major food companies included McDonald’s, Starbucks, Coca-Cola, and PepsiCo. These four iconic U.S. brands have been functioning in the country since it was a part of the Soviet Union. However, after facing heightened public scrutiny, the companies decided to suspend their business dealings there. Hence, all these U.S. brands suspend business in Russia following Russia’s invasion of Ukraine.

Food Companies To Suspend Business in Russia

The Coca-Cola Company made the announcement on Tuesday that read, “Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine. We will continue to monitor and assess the situation as circumstances evolve.”

Likewise, McDonald’s Chief Executive, Chris Kempczinski, announced the temporary closure of its 850 McDonald’s restaurants operating in the country. “Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” said Kempczinski. Even with the ‘temporary closure’, the company will continue to pay its 62,000 Russian employees amid the ongoing crises.

Shortly after Coca-cola and McDonald’s statements, Starbucks and Pepsico also announced suspensions of their sales in the country. Starbucks CEO, Kevin Johnson, said in an open letter, “The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world.” While the company suspended the sales of its legendary cola and 7UP, it will continue to manufacture milk, baby formula, and baby food. This will keep the Russian workers employed. Similarly, Pepsi CEO Ramon Laguarta wrote, “As a food and beverage company, now more than ever we must stay true to the humanitarian aspect of our business.”

Of all the four iconic U.S. brands, McDonald’s has a larger presence in the country. The company will face a significant financial loss for closing down its stores in Russia while still paying its workers. But the financial hit will not lead the company to bankruptcy. Most importantly, McDonald’s announcement indicates that the companies no longer hold the outdated business mentality that revolves around shareholder interests.

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