Pressure on “Pepsi”, “Coca Cola” and “McDonald’s” to exit the Russian market!

Oreos and Ritz Crackers maker McDonald’s, Coca-Cola, PepsiCo and Mondelez International, social media and key investors are facing pressure to exit the market, the New York Times reported.

But Starbucks CEO Kevin Johnson has condemned the “unprovoked, unjustified and brutal attacks” he said in a statement to staff on Friday by Russia on Ukraine.

Johnson said the company would donate royalties received from its operations in Russia to humanitarian relief efforts in Ukraine. Yesterday, Saturday, the “Starbucks” website in Russia showed that almost 130 stores in the country are open and operating during normal business hours.

While technology giants like Apple and luxury retailers like Hermes are moving quickly to suspend sales or close stores in Russia due to military action in Ukraine, most U.S. food companies and fast food chains remain open and often quiet.

Unlike retailers, according to Russia Today, some fast food companies do not actually own restaurants that operate under their own name.
In Russia, Starbucks, Papa John’s and Yumbrands chains, including KFC and Pizza Hut, are often run by banks or by owners with close ties to Russian investors.

Based on the agreements, the owners say it is up to the owner, not the brands, to decide whether to close the restaurant due to political turmoil.

Fast food restaurants and food and beverage companies were one of the first to enter the Russian market, and many have worked there wonderfully for decades. Even in times of turmoil and other political tensions, companies still find consumers eager to buy American soda, eating burgers, chicken and pizza.

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When McDonald’s opened its first restaurant in Russia in 1990 in Moscow’s Pushkin Square, 30,000 Russians lined up to taste their first hamburger. A few years later, Michael Gorbachev, the former president of the Soviet Union, appeared in an ad for Pizza Hut.

Unlike other restaurant chains, McDonald’s owns most of its 847 restaurants in Russia. According to one investor, Russia accounts for 9 percent of the company’s total revenue and 3 percent of its operating income.
The New York Times reported that “McDonald’s” had not released any report on the Russian military operation. A company spokesman did not respond to questions about whether its restaurants were open in Russia and how they received or paid for the goods.

PepsiCo has not released any statement on its operations in Russia, and has not responded to numerous emails seeking comment from its spokespersons.

The company claims to be the largest food and beverage manufacturer in Russia on its website and has invested hundreds of millions of dollars in 3 factories in the country.

Last year, Russia accounted for $ 3.4 billion, or more than 4 percent of PepsiCo’s $ 79.4 billion in revenue.


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  • Nadia Barnett

    "Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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