Ferrari, Lamborghini, GE, and L'Oreal Join One After Another
English Premier League Also Joins Boycott Movement
[Asia Economy Reporter Kim Hyunjung] Global conglomerates that continued operations in the Russian market and faced public backlash are increasingly joining the boycott of Russia. Following famous food and beverage chains, luxury car companies, and cosmetics firms, even the English Premier League has declared a severance of ties with Russia.
On the 8th (local time), according to major media outlets, American companies such as McDonald's, Coca-Cola, Pepsi-Cola, and Starbucks announced their withdrawal plans just two weeks after Russia's invasion of Ukraine. Chris Kempczinski, CEO of McDonald's, sent a letter to employees and franchisees stating that operations at 850 stores in Russia would be temporarily suspended, adding, "McDonald's will continue to assess the situation to determine if further actions are necessary." However, salaries for employees in Russia will continue to be paid. In Ukraine, all 100 stores will be temporarily closed, but employees will continue to receive their salaries, and $5 million (approximately 6.1775 billion KRW) will be donated to an employee relief fund.
Prior to this, McDonald's had not announced a withdrawal despite Russia's invasion of Ukraine, which led to a boycott movement spreading on social media.
Starbucks, the world's largest coffee chain operating over 130 stores in Russia and Ukraine, also announced on the same day that it would cease all operations in Russia. Starbucks stores in Russia are operated by Kuwait's major company Alshaya Group. Kevin Johnson, Starbucks CEO, stated in a separate statement, "We condemn Russia's unjustified, unfair, and terrible attack on Ukraine," and said that royalties from Russian operations would be donated to Ukrainian relief organizations.
Like McDonald's, Coca-Cola and Pepsi-Cola, which had continued operations in Russia, also declared a suspension of business. Coca-Cola stated in a press release, "We send our condolences to all those suffering from the tragic events in Ukraine," and announced the suspension of operations in Russia. AP News reported that Coca-Cola's Swiss subsidiary owns 10 factories in Russia. American food and beverage company PepsiCo decided to suspend sales of carbonated beverage brands such as Pepsi-Cola, 7up, and Mirinda in Russia. However, essential products like baby food, milk, and other dairy products will continue to be sold in Russia.
Earlier, Yum! Brands, the American restaurant company owning brands such as Pizza Hut, KFC, and Taco Bell, decided to halt investments in Russia, a key market. Yum! Brands operates about 1,000 KFC stores and 50 Pizza Hut locations within Russia.
Additionally, Italian luxury sports car manufacturers Ferrari and Lamborghini have decided to suspend operations in Russia, and the world's largest cosmetics company, French L'Or?al, has also decided to stop all business, sales, and investments in Russia. The English Premier League held a shareholders' meeting on the same day and unanimously decided to terminate contracts with Russian broadcasters. The Premier League also condemned Russia for invading Ukraine and announced a donation of ?1 million to support those affected by the war.
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