Coca-Cola and PepsiCo suspend Russia business, point to “events in Ukraine”

Coca-Cola and PepsiCo, two of the world’s largest beverage producers, join the largest fast food chain to suspend business in Russia following the country’s invasion. Ukraine.

Echoing concerns over the Ukrainian people expressed in the early afternoon by McDonald’s, Atlanta-based Coca-Cola announced on Tuesday that it was restricting operations in Russia. “Our hearts are on the people who are suffering the unacceptable effects of these tragic events in Ukraine,” the multinational said.

“We will continue to monitor and assess the situation as circumstances change,” the statement added.

PepsiCo cited the “horrific events in Ukraine” in suspending sales of Pepsi-Cola, 7 Up and other brands in Russia, along with capital investments and advertising in that country, where it has been operating for more than 60 years. The company will continue to sell dairy products, including milk, as well as baby food and formula, he said.

Starbucks followed suit, saying it was suspending all commercial activity in Russia, including shipping its products. “Our licensed partner has agreed to immediately stop operations of the store and will support the nearly 2,000 Russian-dependent partners of Starbucks for their livelihood.”

The companies made their announcements shortly after McDonald’s said it would temporarily close its 850 restaurantin Russia. Like Coca-Cola’s briefest statement, McDonald’s CEO Chris Kempczinski’s open letter to employees failed to condemn Russia for its attack.

More than 2 million people have fled Ukraine since the invasion of the country by Russia, according to the United Nations.

While a wide range of companies have closed in Russia as the crisis in Ukraine escalated, McDonald’s and Coca-Cola were among those who continued to do business there.

Both companies faced boycott campaigns on social media, while McDonald’s was among the calls from the New York State pension fund, one of the largest U.S. investors.

On Tuesday, New York State Comptroller Thomas DiNapoli applauded the decision by McDonald’s and other companies to withdraw from Ukraine.

“Companies doing business in Russia need to seriously consider whether the risk is worth it. As investors, we want assurances that our holdings are not in jeopardy. Praise the companies that are taking the right steps and have suspended their operations in Russia “, DiNapoli. he said in a statement.

More than 200 U.S. and foreign companies have downsized their operations in Russia so far, according to a count by Jeffrey Sonnenfeld, a professor of management at Yale University. He had previously listed McDonald’s and Coca-Cola among the companies remaining in Russia with significant exposure.