for foreign companies present in Russia, the options are increasingly limited in a financial and geopolitical context over which they have no control. Incidentally, Decathlon has just announced the “suspension” of its activities in Russia. And, before the Dutch brewer Heineken and its Danish competitor Carlsberg, other groups had announced their departure from Russia since the invasion of Ukraine.
McDonald’s announced on March 8 the temporary closure of its restaurants in Russia. But restaurants of the brand were still in operation on March 18. For good reason: the decision concerns establishments owned directly by the American giant, and not those managed as a franchise. That is nearly 80% of the 850 establishments in this country. Same variable geometry shrinkage for its big competitor KFC. An overwhelming majority, since the brand specializing in chicken has 70 establishments out of a total of 979.
Restaurant Brand International, the shareholder of Burger King which has pledged to suspend its investments in the country ruled by Mr Putin, stressed that its nearly 800 outlets are in the hands of franchisees and that they should remain open. Conversely, Starbucks clarified that the Kuwaiti company which operates its cafes in Russia, and has nearly 130, had accepted their temporary closure.
On the side of industrial, the positions taken must also be put into perspective. The press release from Coca-Cola deciding on a suspension of its activities in Russia is more than sibylline. The ball is, in fact, in the court of its bottling partner, the Coca-Cola Hellenic company, which is hardly more forthcoming on the terms of implementation of the Atlanta firm’s decision. At its major competitor PepsiCo, the choice was made to no longer export its flagship brand of cola and other sodas to Moscow. But the American group has very strong local roots. In 2010, he acquired the Russian leader in dairy products, infant food and a major player in the fruit juice market. In this case the company Wimm-Bill-Dann, whose turnover was then estimated at 5 billion dollars (about 4.53 billion euros). Similarly, Kellogg’s continues to manufacture cereals and biscuits in the three factories it has on Russian territory.
Last week, the Swiss food giant Nestlé announced that it would further reduce the range of its products sold in Russia but maintain the supply of baby products and medicalized foods. The group will suspend, for example, brands such as KitKat chocolate bars or Nesquik chocolate powders, according to a press release. It will also suspend pet products and coffee, a Nestlé spokesperson told AFP. In a press release published on March 11, the world’s number one food company, which has no intention of closing its seven local factories, explained that it had suspended its imports and exports to Russia, in particular its major international brands such as Nespresso or San Pellegrino mineral water, to limit themselves to basic necessities.
If you want to know more, you can read our article: In Russia, moderate withdrawals for American food brands
Side luxury brand, Hermès announced on March 4 its decision to suspend its activity in Russia. In the evening, Chanel made a similar decision because “complexity to operate” in the country. A few hours later, Kering, the group chaired by François-Henri Pinault, and LVMH, the world number one in the sector, owned by Bernard Arnault, first fortune of France, also announced to close “temporarily their shops”.
The oil groups British companies BP and Shell and the American ExxonMobil, the car manufacturers Jaguar Land Rover, Volvo, Toyota and Volkswagen, the Italian insurer Generali, Ikea, or even Apple, Disney, Microsoft and Meta have in turn decided to leave the country, suspend their activities or close their representative office.
If you want to know more, you can read our article: Against the tide of many multinationals, large French companies want to stay in Russia
to know the detail of the Western companies still present in Russia, you can follow the list established by Yale School of Management website.