Starbucks announced that it will withdraw from the Russian market: McDonald’s, Coca-Cola, etc. have withdrawn from alternatives
According to a report by ABC News on May 23,Starbucks Corporation of the United States announces that it will withdraw from the Russian market. Starbucks said in a memo to employees that day that it decided to close its 130 stores in Russia and that its brand would no longer be retained in the Russian market.
However, Starbucks said it would pay its nearly 2,000 Russian employees six months’ wages and help them transition to new jobs. Starbucks has suspended all store operations in Russia since March 8.
Starbucks entered the Russian market in 2007 and has 130 stores in the country, but they are all wholly owned and operated by franchise partners, so according to media reports, the region accounts for less than 1% of the company’s annual revenue.
On Thursday (May 19), McDonald’s agreed to sell its Russian business to current franchise holder, Siberian businessman Alexander Govor. Under the agreement, Govor will acquire all McDonald’s locations and operate under the new brand. The market expects the “Russian version” of McDonald’s to be available soon.
The “Russian version” of Coca-Cola has already taken the lead. Last Monday (May 16), Russian beverage maker Ochakovo launched a new line of soft drinks to replace the iconic brand Coca-Cola that has left the Russian market.
Not only American companies, but French carmaker Renault also said on Monday that it agreed to sell its entire stake in Renault Russia to the Moscow city government and its 67.69% stake in AvtoVAZ to a Russian government-backed company. Automotive R&D Center NAMI.
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