Four American catering companies, including McDonald's and Coca-Cola, suspended their business in Russia. Earlier in the day, McDonald's announced the temporary closure of its restaurants in Russia, Starbucks announced the suspension of all its cafes in Russia, and four American catering companies, including McDonald's and Coca-Cola, suspended their business in Russia.
Since McDonald's, Coca-Cola and other four American catering enterprises suspended their business in Russia, the conflict between Russia and Ukraine has been escalating. Due to the strong opposition of the government, the American chain restaurant McDonald's (MCD. US) announced that it will temporarily close 850 stores in Russia, but will continue to pay employees' salaries. Starbucks (SBUX. America) and Coca-Cola (KO. US) also announced the suspension of its business in Russia. PepsiCo (PepsiCo). The United States) said that it will suspend the sale of soft drinks in Russia, but will continue to sell daily necessities such as milk and infant formula.
Gene Grabowski, a partner of communication company KGlobal, said that given the interconnectedness of the supply chain, the withdrawal of some companies made it easier for others to do the same thing. For example, Coca-Cola is a supplier of McDonald's, so McDonald's behavior affects its main customers in this country.
If the situation changes, some companies will open their doors and quickly resume their business in Russia. McDonald's and Starbucks said they would continue to pay employees when they closed their stores in the country. If the company cannot resume normal operation for a long time, it may weaken its profitability.
Andrew Charles, an analyst at Cowen Inc, said last week that the exposure to Russia and Ukraine is "irrelevant" to McDonald's, although it accounts for about 9% of the company's revenue. This is because McDonald's reported $654.38+004 billion last year, and the operating profit of these countries is less than 3%, that is, $365.438+065.438+000 billion.
James Rutherford, an analyst at Stephens, said that McDonald's decision to give up sales and continue to pay employees "may temporarily have a more significant impact on operating income than the 3% operating income portfolio implies." However, he wrote in a research report that this may be at least partially offset by the devaluation of the ruble against the US dollar.
On the one hand, some companies condemn Russia, on the other hand, they emphasize that they don't want to ignore the basic needs of Russian consumers because of the government's actions.
Ramon Laguarta, CEO of PepsiCo, said: "As a food and beverage company, we must be more loyal to the humanitarian aspects of our business than ever before." "This means that we have the responsibility to continue to provide Russia with our other products, including daily necessities such as milk and other dairy products, infant formula and baby food."
Before the massive withdrawal of consumer goods companies from Russia on Tuesday, Nike and other companies. America) and Apple (AAPL). US) announced the suspension of Russian business. Jeffrey Sonnenfeld, a professor of business at Yale University, said that it has proved difficult for large international brands to get rid of brand building in Russia for decades.
He said, "There is a reason why many consumer goods companies wait until the last minute." "They are afraid because they have worked hard to build these iconic brands."
Four American catering companies, including McDonald's and Coca-Cola, suspended their business in Russia. The latest news from the British Broadcasting Corporation (BBC) on the morning of 9th (Beijing time) said that Coca-Cola Company announced that it would suspend its business in Russia.
Coca-Cola Company said in a statement: "Our hearts are with those who have been unreasonably affected by the tragic events in Ukraine." According to the BBC, this is the latest well-known western brand to suspend its business in Russia after McDonald's and Starbucks announced similar decisions.
BBC report screenshot
But not long after, the BBC continued to update that a few minutes after Coca-Cola announced the above decision, Pepsi became the latest food and beverage giant to reduce its business in Russia.
BBC report screenshot
According to the report, PepsiCo said that it will suspend the sales of PepsiCo and its brands 7-up and mirinda in Russian, but will continue to sell daily necessities such as infant formula.
Four American catering companies, including McDonald's and Coca-Cola, suspended their business in Russia. On March 8th, local time, American chain restaurant McDonald's announced that it would temporarily close 850 Russian stores, but it would continue to pay its employees' salaries, and its ronald mcdonald house charity would also continue to operate.
On the same day, Starbucks, Coca-Cola and Pepsi also announced that they would suspend their business in Russia.
Starbucks official website screenshot
PepsiCo said: It will suspend all capital investment, advertising and promotion activities in Russia, and stop its business in Ukraine, so that employees can seek safety when the war in that country escalates.
Coca-Cola said in a brief statement that it will continue to monitor and evaluate the situation as the situation develops. PepsiCo said that it would suspend the sales of Pepsi-Cola, 7-up and mirinda brands, capital investment in Russia and all advertising and promotion activities, but would continue to sell some basic products in Russia, such as infant formula, milk and baby food.
Earlier in the day, McDonald's announced the temporary closure of its restaurants in Russia, Starbucks announced the suspension of all its cafes in Russia, and Coca-Cola Company also announced the suspension of its business in Russia.