Starbucks Russia

STARBUCKS BIDS FAREWELL TO RUSSIAN MARKET

Starbucks announced on Monday, 23 May, that its temporary suspension of operations in Russia, which it had announced in March, is now permanent.

In a letter on the Starbucks’ press section of their website, the company stated that it “has made the decision to exit and no longer have a brand presence in the market.”

Due to the repercussions of the Russia-Ukraine War, Starbucks temporarily stopped its operations in 130 cafes in Russia on 8 March. This included shipments of coffee and products.

In March, Kevin Johnson, former Chief Executive Officer of Starbucks Coffee Company, addressed Starbucks’ partners, stating, “We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products.”

We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products.”

Kevin Johnson, former Chief Executive Officer of Starbucks (speaking in March)

Together with its licensed partner, Starbucks vows to keep paying nearly 2,000 of its employees in the country for six months as well as help them find new jobs.

The coffee company obtained a licensing deal in Russia and has been doing business in the country since 2007, with its first branch opening in a shopping mall in Khimki, Moscow.

On May 16, American fast-food giant McDonald’s also exited Russia after 32 years of operations in the country, although big chocolate companies such as Mondelez, Cargill and Barry Callebaut have been criticised for remaining.

Photo by Tamara Malaniy on Unsplash

Author

  • Nick 2017 500X500 1

    Nick Baskett is the editor in Chief at Bartalks. He holds a diploma from the Financial Times as a Non Executive Director and works as a consultant across multiple industries. Nick has owned multiple businesses, including an award-winning restaurant and coffee shop in North Macedonia.

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