McDonald’s, Coca-Cola, Pepsi & Starbucks pause operations in Russia
Iconic U.S. brands leaving Russia
UPDATE 1:45 p.m.
Food and beverage giants Coca-Cola and Pepsi have also now announced they are suspending operations in Russia.
Starbucks made a similar announcement, in addition to McDonald's earlier in the day.
The four brands are some of the most iconic in the U.S.
The Coca-Cola Company published a brief statement on its website Tuesday, announcing the suspension of business in the country
"Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine," Coke said. "We will continue to monitor and assess the situation as circumstances evolve."
PepsiCo, meanwhile, says it is suspending the sale of its major beverage brands in Russia after over 60 years.
PepsiCo is not fully closing operations in Russia and will continue to offer other products like milk, baby food and dairy offerings, "as a food and beverage company, now more than ever we must stay true to the humanitarian aspect of our business."
"By continuing to operate, we will also continue to support the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain as they face significant challenges and uncertainty ahead," the company said.
Starbucks is also suspending all shipments to Russia as it pauses operations of all stores there.
"We condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected," and that "we continue to watch the tragic events unfold," Chief Executive Kevin Johnson said.
The company said Kuwait-based Alshaya Group, which operates 100 Starbucks stores in Russia, will support the nearly 2,000 employees during the time of the closure.
ORIGINAL 10:30 a.m.
McDonald’s said Tuesday it is temporarily closing all of its 850 restaurants in Russia in response to the country’s invasion of Ukraine.
The burger giant said it will continue paying its 62,000 employees in Russia. But in an open letter to employees, McDonald’s President and CEO Chris Kempckinski said closing those stores is the right thing to do because McDonald’s can’t ignore the “needless human suffering in Ukraine.”
"Years ago, when confronted with his own difficult decision, Fred Turner explained his approach quite simply: 'Do the right thing.' That philosophy is enshrined as one of our five guiding values, and there are countless examples over the years of McDonald’s Corporation living up to Fred’s simple ideal. Today, is also one of those days," Kempckinski continued.
McDonald’s owns 84% of its Russian restaurants. In a recent financial filing, the company said Russia and Ukraine contributed 9% of the company’s revenue last year.
"As many of our colleagues in Ukraine have sought refuge, they have found the familiar support of the McDonald’s system in new and unfamiliar places. In Poland and many other markets across Europe, our system has literally opened their homes, their hearts, and their restaurants," Kempckinski said.
McDonald’s says it's impossible to know when they will be able to reopen their restaurants in Russia. The company is also reporting supply chain disruptions.
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