Starbucks, Pepsi and Coca Cola join brand exodus from Russia

Starbucks, Coca Cola and Pepsi — global beverage giants — announced on Tuesday that they will be suspending their operations in Russia, citing the invasion of Ukraine. Fast-food giant McDonalds also took a similar step on Tuesday.

Starbucks announced late last week that it will donate all its profit from nearly 130 stores in Russia to Ukraine to aid humanitarian aid efforts. Kevin Johnson, the President and CEO of Starbucks, announced in an open letter that all 2,000 people employed by the company in Russia would continue to receive their pay.

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Coca-Cola Co. announced it was suspending its business in Russia, but it offered few details. Coke’s partner, Switzerland-based Coca-Cola Hellenic Bottling Co., owns 10 bottling plants in Russia, which is its largest market. Coke has a 21% stake in Coca-Cola Hellenic Bottling Co, according to reports from Associated Press.

Pepsi, which is based in New York, announced that its beverages would not be sold in the Russian market, adding that all promotional activities and capital investments would also be suspended.

However, Pepsi also announced steps to continue support for nearly 20,000 employees and 40,000 agriculture workers who were based in Russia and linked to the company’s supply chain. Pepsi will continue to produce milk, baby food and baby formula. 

General Electric also said in a Twitter post that it was partially suspending its operations in Russia. GE said two exceptions would be essential medical equipment and support for existing power services in Russia.

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McDonald’s is among those to take the biggest financial hit. Unlike Starbucks and other fast-food companies like KFC and Pizza Hut, whose Russian locations are owned by franchisees, McDonald’s owns 84% of its Russian stores, according to reports from Associated Press.

McDonald’s has also temporarily closed 108 restaurants it owns in Ukraine and continues to pay those employees.