This story has been updated with PepsiCo's announcement
Coca-Cola Co. is suspending its business in Russia following the nation’s invasion of Ukraine, while PepsiCo announced it would halt the sale of Pepsi-Cola and other beverage brands in the country.
“Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” Coca-Cola Co. said in a statement Tuesday. “We will continue to monitor and assess the situation as circumstances evolve.”
It didn’t release further details about actions being taken. Bloomberg earlier reported that Coca-Cola’s Swiss-based bottler, Coca-Cola HBC, gets about 21% of its volume from Russia and Ukraine.
PepsiCo, which made its announcement after Coke's plans were public, said it would continue "to offer our other products in Russia, including daily essentials such as milk and other dairy offerings, baby formula and baby food."
The company released a memo sent from CEO Ramon Laguarta to PepsiCo employees that recalled PepsiCo's historical ties to Russia, including how it "entered the market at the height of the Cold War and helped create common ground between the United States and the Soviet Union."
"However, given the horrific events occurring in Ukraine we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and Mirinda," the memo stated. The company has 20,000 Russian associates, plus 40,000 Russian agricultural workers in its supply chain, according to the memo, which stressed that by continuing to operate PepsiCo can "support the livelihoods" of those workers.
The Wall Street Journal earlier today reported that PepsiCo was considering a range of options, including writing off the value of the business in the country. The report cited unidentified people familiar with the matter.
—Bloomberg News with contributions from Ad Age