Economy

Unique: PepsiCo Stops Manufacturing of Pepsi, 7UP in Russia Months After Pledge to Cease Ukraine

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  • This content material was produced in Russia, the place protection of Russian army operations in Ukraine is restricted by regulation

NEW YORK/MOSCOW, Sept 20 (Reuters) – PepsiCo Inc ( PEP.O ) has halted manufacturing of Pepsi, 7UP and Mountain Dew in Russia, practically six months after the U.S. firm mentioned it could droop gross sales and manufacturing after Moscow has despatched tens of 1000’s of troops to Ukraine.

Pepsi’s announcement got here after Reuters visited dozens of supermarkets, retailers and gymnasiums in and out of doors Moscow and located Pepsi cans and bottles bearing July and August manufacturing dates from factories in Russia.

The latest date for a Pepsi product was August 17.

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In a press release to Reuters, the US firm mentioned it had halted manufacturing of concentrates for PepsiCola, Mirinda, 7Up and Mountain Dew in Russia.

“After that, all focus was exhausted in Russia and manufacturing ended,” a PepsiCo spokesman mentioned on September 8, the primary public touch upon the matter for the reason that firm introduced in early March that it could droop manufacturing, gross sales, promotional actions and promoting. Russia. Learn extra

A spokesman mentioned it was “associated to our March 2022 announcement” however declined to remark when requested for an replace on the gross sales and whether or not they had been halted.

The continuation of manufacturing implies that soda stays extensively out there in Moscow, in addition to in Vladivostok within the Far East and Krasnoyarsk in Siberia, in response to a Reuters report.

The proprietor of a Moscow gymnasium mentioned he positioned an order with Pepsi again in mid-August.

The West has not sanctioned the foods and drinks as a part of sweeping measures to punish Russia for its actions in Ukraine.

Nevertheless, the continued availability highlights the complexities of exiting one of many world’s largest nations. In 2021, Russia was New York-based Pepsi’s third largest market after america and Mexico.

Earlier this summer season, shops within the capital have been nonetheless promoting shares of the international beers, months after the brewers introduced they’d cease manufacturing. Learn extra

Atlanta-based rival Coca-Cola Co ( KO.N ) additionally resumed manufacturing in Russia after saying in March that it could droop operations.

The corporate mentioned in June that its bottler, a separate firm Coca-Cola HBC AG ( CCH.L ), and current clients in Russia have been working out of provides, after which manufacturing and gross sales of Coke and different manufacturers in Russia would cease. Learn extra

PepsiCo introduced in March that it could proceed to promote important merchandise in Russia, reminiscent of milk and different dairy merchandise, child meals and child meals. The corporate has been working in Russia for greater than 60 years, and its colas have been among the many few Western merchandise allowed within the Soviet Union earlier than its collapse.

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Reporting by Alexander Marrow in Moscow and Jessica DiNapoli in New York; Editor: Josephine Mason and Lisa Shumaker

Our Requirements: The Thomson Reuters Belief Ideas.

Jessica DiNapoli

Thomson Reuters

New York-based reporter on American client merchandise, from paper towels to packaged meals, the businesses that make them, and their reactions to the economic system. Company boards and distressed firms have been reported previously.

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