PepsiCo ends production in Russia after months of promise over Ukraine

PepsiCo ends production in Russia after months of promise over Ukraine

PepsiCo, Inc. has reportedly stopped producing Pepsi, 7UP, and Mountain Dew in Russia, approximately six months after the company promised suspension of sales following Moscow’s invasion of Ukraine.

The American Corporation stated in early March that it would discontinue production, promotional activities, sales, and advertising in Russia, after which a PepsiCo representative mentioned on September 8th that all concentrates have now been depleted in the country and production is conclusively terminated.

According to sources, sodas are still freely available in Moscow as well as in the far east of Vladivostok and Siberia's Krasnoyarsk indicating that the production process was on until recently. Additionally, it was revealed that many products had only July-August production dates on them, with the latest available bottles having a manufacturing date of 17th August.

For those unversed, as part of the broad sanctions intended to penalize Russia for its brutal behavior in Ukraine, the West had not imposed stringent rules on food and drinks.

However, the ongoing accessibility indicates how difficult it is to discontinue supply in one of the biggest nations in the world. After Mexico and the United States, Russia was Pepsi's third-largest market in 2021.

In March, PepsiCo reportedly claimed that it would continue selling essential commodities in Russia like infant formula, milk & other dairy products, and baby food.

Interestingly, the company has been in business in Russia for the past 60 years, and even when the Soviet Union fell, its drinks were some of the few Western products that were permitted in the country.

It is worth mentioning that like PepsiCo, its Atlanta-based rival Coca-Cola Co., continued production in Russia despite having said that it would stop doing so, a few months ago.

However, Coca-Cola mentioned in June that sales and production of Coke and other brands would eventually stop in Russia after the stocks are exhausted by its bottler, Coca-Cola HBC AG, and consumed by its existing customers.

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