PepsiCo bans Ukraine references in ads to stay in lucrative Russian market — media

The New Voice of Ukraine
·2 min read
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PepsiCo ignores the topic of war in Ukraine and whether there will be consequences for it
PepsiCo ignores the topic of war in Ukraine and whether there will be consequences for it

PepsiCo, the global food and beverage giant, has banned any mention of Ukraine and its armed forces in advertising in an attempt to avoid alienating the Russian market, the Ukrainian Council of Shopping Centers, said citing Forbes.

While PepsiCo continues to do business in Russia, the company fears that openly supporting Ukraine may hinder its business in the terrorist state. PepsiCo is simultaneously trying to retainits foothold in Ukraine.

"The company is trying to have its cake and eat it too — not leaving the Russian market while keeping a presence in Ukraine," said Yuriy Hladkyi, Grape creative agency CEO.

The manufacturer's revenues in Russia are approximately 10 times higher than in Ukraine, said one top manager.

PepsiCo's restrictions aim to minimize reputational risks, said strategic communications consultant Yaryna Kliuchkovska.

PepsiCo has thus far not provided an official comment on the matter.

Read also: Global beverage giant PepsiCo bans mention of war and Ukrainian Armed Forces in ads

PepsiCo has been operating in Russia since 1974, where it has nineteen plants, around 20,000 employees, and 40,000 agricultural workers. PepsiCo is the fourth-largest company in the beverages and food products industry in Russia.

PepsiCo's net profit in Russia soared by 333% to $525 million last year. The company paid approximately $115 million in taxes to the Kremlin. Currently, the iconic Pepsi Cola is sold under the brand name Evervess-Cola, while regular Pepsi Cola is still available in Russian supermarkets through so-called parallel imports.

The Ukrainian National Agency on Corruption Prevention or NACP included PepsiCo in the list of international sponsors of the war. Aside from operating in Russia, the company’s products were found in the food rations of Russian soldiers.

The NACP invited CEOs of international companies that have not ceased operations in Russia to visit Ukraine. The list of international sponsors of the war can be found here.

Read also: Pepsi and Mars named international sponsors of war for pumping money into Russian economy

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