Atlanta-based Coca-Cola announced Tuesday that it would be reducing its Russian operations, echoing earlier McDonald’s concern about the people of Ukraine. The multinational said that its heart was with those suffering unconscionable consequences from the tragic events in Ukraine.
The statement said, “We will continue monitoring and assessing the situation as circumstances change.”
PepsiCo blamed “the horrible events occurring in Ukraine” for suspending sales of 7 Up, Pepsi-Cola and other Russian brands. It also cited capital investments and advertising in Russia, where it has been operating for over 60 years. It stated that the company will continue to sell milk products, baby food, and formula.
Starbucks also followed suit and announced that it would suspend all business activities in Russia, including the shipment of its products. “Our license partner has agreed immediately to pause store operations, and will support the almost 2,000 Russian partners who rely on Starbucks for their livelihood.”
“We condemn the terrible attacks on Ukraine by Russia,” declared Kevin Johnson, CEO of the coffee chain.
After McDonald’s announced that it would temporarily close its 850 Russian restaurants, the companies made their announcements. McDonald’s CEO Chris Kempczinski’s open letter to employees was similar to Coca-Cola’s shorter statement. He did not condemn Russia for the attack.
According to the United Nations, more than 2,000,000 people fled Ukraine after Russia invaded the country.
As the Ukraine crisis worsens, many Russian companies have closed down. However, McDonald’s and Coca-Cola are still doing business in Russia.
Both companies were subject to social media boycotts. McDonald’s was also called out by New York’s state pension fund, which is one of the largest U.S. investors.
Thomas DiNapoli, New York State Comptroller, applauded Tuesday’s decision by McDonald’s to pull out of Ukraine.
Companies doing business in Russia should seriously evaluate whether the risk is worth it. We as investors want to be sure that our investments are safe. “I commend companies that have taken the right steps to suspend their operations in Russia,” DiNapoli stated in a statement.
Jeffrey Sonnenfeld, Yale University’s management professor, has compiled a list of more than 200 U.S.- and foreign companies that have ceased operations in Russia. Previous listings McDonald’s, Coca-Cola were among the Russian companies with significant exposure.
