Echoing other brands concern about the unprovoked Russian invasion of Ukraine, three major brands – The Coca-Cola Company, Pepsico and Starbucks have announced the suspension of business in Russia.
Today, Atlanta-based Coke made the announcement that it would suspend its business citing “tragic events.” “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.
New York-based PepsiCo also referred to “the horrific events occurring in Ukraine” as it suspended sales of Pepsi-Cola, 7 Up and other brands in Russia, along with capital investments and advertising in that country, where it’s operated for more than 60 years.
The company will continue to sell dairy products including milk, as well as baby food and formula, it said. Below is the company statement from CEO Ramon Laguarta to PepsiCo associates:
“As the tragic war continues in Ukraine, I wanted to update everyone on PepsiCo’s activities in the region.
As many of you know, we have been operating in Russia for more than 60 years, and we have a place in many Russian homes. Pepsi-Cola entered the market at the height of the Cold War and helped create common ground between the United States and the Soviet Union. However, given the horrific events occurring in Ukraine we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and Mirinda. We will also be suspending capital investments and all advertising and promotional activities in Russia.
As a food and beverage company, now more than ever we must stay true to the humanitarian aspect of our business. That means we have a responsibility to continue to offer our other products in Russia, including daily essentials such as milk and other dairy offerings, baby formula and baby food. 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.
Our first priority continues to be the safety and security of our fellow Ukrainian associates. We suspended operations in Ukraine to enable our associates to seek safety for themselves and their families, and our dedicated crisis teams in the sector and region continue to closely monitor developments in real-time.
We are also continuing to provide aid on the ground to assist Ukrainian refugees in neighboring countries. Our business has donated food, milk and refrigerators to relief organizations, and we’re ramping up production of foods and beverages in neighboring countries to meet the increased need. We are also donating a total of $4 million to the Red Cross in Poland, World Vision in Romania, the World Food Program, World Central Kitchen and Save the Children.
And we continue to match up to $1 million raised from PepsiCo employees through our Gift Matching Campaign. The number of associates expressing concern for our colleagues and a genuine desire to help has been truly inspiring, with some of you even volunteering to take refugees into your homes. Your kindness and generosity speak volumes about our company, and we will continue working to support your efforts.
My heart goes out to all those who are caught in the middle of this deadly conflict. As it so often does, war is falling hardest on the innocent. War is never an answer, and we join all those calling for a speedy, peaceful resolution.”
Seatttle-based Starbucks followed suit, saying it was suspending all business activity in Russia, including shipment of its products. “Our license partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood.”
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“We condemn the horrific attacks on Ukraine by Russia,” stated the coffee chain’s CEO, Kevin Johnson. Johnson’s full statement is below:
“Partners,
As I communicated Friday, we condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected.
We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products. Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood.
Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency. Thank you for the care and concern you are sharing with me and your leaders.
As always, I’m extremely proud to be your partner.
Kevin
The companies made their announcements shortly after McDonald’s said it would temporarily close its 850 restaurants in Russia. Like Coca-Cola’s briefer statement, McDonald’s CEO Chris Kempczinski’s open letter to employees stopped short of condemning Russia for its attack.
More than 2 million people have fled Ukraine since Russia’s invasion of the country, according to the United Nations.
