Topline
A growing list of companies across virtually every industry have cut ties with Russia over its unprovoked invasion of Ukraine, but some household names are trying to continue with business as usual, risking backlash from consumers and investors.
The logo of Uniqlo at a shopping center in Saint-Petersburg, Russia. (Photo by Sergei … [+]
Key Facts
In the hospitality industry, Europe’s biggest hotel group Accor—which operates about 55 locations in Russia and has 2,000 workers there—has paused future opening in Russia but is keeping its hotels open, along with InterContinental (1), according to a list compiled by Yale University professor Jeffrey Sonnenfeld and his research team.
On Thursday morning, Marriott announced it closed its corporate office in Moscow and will “pause the opening of upcoming hotels and all future hotel development and investment in Russia.”
In the food and drink sector, among those continuing their business in Russia are Nestle ($1.7 billion in sales in 2020) and Mars.
Even as its rivals Zara and H&M have halted sales in Russia, Japanese fashion brand Uniqlo has stayed put, with CEO Tadashi Yanai saying, “Clothing is a necessity of life. The people of Russia have the same right to live as we do.”
Accor, Hyatt, InterContinental and Mars did not respond to Forbes’ requests for comment at the time of publication.
Key Background
After drawing criticism on social media, McDonald’s on Tuesday said it was temporarily closing all of its 847 stores in Russia over its invasion of Ukraine. Yum Brands, the parent company of KFC, which also came under pressure on social media, said Tuesday it was halting investment in Russia. Coca-Cola said Tuesday it was suspending Russia operations over the Ukraine crisis. Deborah Meaden, an investor who stars on the hit BBC business show Dragons’ Den, tweeted, “Well you’ve only gone and done it!!! Coca Cola ceases trade in Russia #peoplepower,” after urging people on Twitter to stop drinking Coca-Cola. Pepsi said Tuesday it was suspending production and sales of Pepsi-Cola and other beverage brands in Russia. Starbucks said Tuesday it was suspending all business activities in Russia, including shipment of its products, and that its Russian licensee agreed to support nearly 2,000 employees there after stores close. Kraft Heinz, which has more than 1,200 workers in Russia, said in a statement to Forbes that it has suspended shipments of its products to and from Russia, and halted new investments there. Papa John’s International said in a statement Wednesday it has stopped providing operational, marketing, or business support in the Russian market, where all of its 185 stores are owned by franchisees. Hilton said in a statement Wednesday it has closed its corporate office in Moscow and is suspending all new development activities in Russia, where it has 26 hotels directly managed and franchised. A Hyatt spokesperson told Forbes that the company is immediately suspending development activities and new investments in Russia.
Further Reading
McDonald’s and Coca-Cola boycott calls grow over Russia (BBC)
McDonald’s, Pepsi, others should consider pausing Russia operations -NY pension fund (Reuters)
Uniqlo owner stays put in Russia as Boeing suspends buying Russian titanium (Reuters)
Source: https://www.forbes.com/sites/lisakim/2022/03/10/from-mars-to-uniqlo-these-major-companies-are-continuing-to-do-business-in-russia/