Sanctions on Russia May Hit US Brands From McDonald’s to PepsiCo

(Bloomberg) -- With Western governments ramping up sanctions on Russia, investors are trying to assess the impact on American businesses, including some of the biggest U.S. consumer companies.

Russia has become a big market for American companies -- from Coca-Cola Co. to McDonald's Corp. But the invasion of Ukraine and the impact of sanctions on Russian consumers have cast a shadow over their investments.

Here is a running list of American companies with operations in the region, along with their recent comments and sales information, much of it from a Feb. 22 JPMorgan Chase & Co. report. It'll be updated as developments warrant.

Anheuser-Busch InBev NV

AB InBev Efes, a joint venture between Anheuser-Busch InBev and Turkey's Anadolu Efes Biracilik Ve Malt Sanayii AS, has a staff of 3,000 in Ukraine and has halted sales and production.

Bunge Ltd.

Bunge is a maker of bottled vegetable oil. It gets 2.6% of its revenue from Russia and Ukraine.

Carnival Corp.

The cruise line operator gets 3.6% of its revenue from Russia and Ukraine. It said in a statement it will be modifying itineraries in the coming week once alternative ports can be confirmed.

Coca-Cola Co.

Coca-Cola's Swiss-based bottler, Coca-Cola HBC, gets about 21% of its volume from Russia and Ukraine. It has shut down operations in Ukraine and sent staff home.

“We have enacted our contingency plans that include stopping production in the Ukraine, closing our plant and asking colleagues in the country to remain at home and follow local guidance,” a Coca-Cola HBC spokesperson said in a statement.

Coty Inc.

Coty, which owns the beauty brands CoverGirl, Rimmel and Max Factor, gets 3.1% of its revenue from Russia and Ukraine.

Estee Lauder Cos.

The cosmetics giant gets 2.7% of its revenue from Russia and Ukraine.

General Motors Co.

The automaker said Monday it will halt shipments to Russia, citing “a number of external factors, including supply chain issues and other matters beyond the company's control.”

“Our thoughts are with the people of Ukraine at this time,” the company said in an emailed statement.

GM exports about 3,000 vehicles a year to Russia from the U.S., including the Cadillac XT4, XT5, XT6 and Escalade; the Chevrolet Traverse and Tahoe SUVs; and a Chevy Trailblazer made in South Korea.

Harley-Davidson Inc.

The motorcycle maker suspended its business in Russia, according to a statement. Milwaukee, Wisconsin-based Harley relied on Europe and the Mideast for 31% of motorcycle sales last year. It doesn't break out sales to Russia.

Herbalife Nutrition Ltd.

The vitamin supplement company gets 2.7% of its revenue from Russia and Ukraine.

Kimberly-Clark Corp.

The maker of leading household products gets 2.8% of its sales from Russia and Ukraine, according to JPMorgan, with the vast majority from Russia.

McDonald's Corp.

The international fast food chain got about 9% of its revenue last year from Ukraine and Russia, according to a company filing. It says 84% of the 847 locations in Russia are company owned, along with all of the 108 McDonald's in Ukraine.

Mondelez International

Mondelez International, the Chicago-based parent of Chips Ahoy, Oreo and other snack brands, has paused operations in Ukraine and is supporting employees by advancing pay, according to a spokesperson. The company is also providing humanitarian aid with rescue and shelter efforts at the border.

Mondelez gets 3.5% of its sales from Russia and Ukraine. With more than 4,300 employees across Eastern Europe, its Chief Executive Officer Dirk Van de Put told Reuters last week the company planned to close plants in Ukraine. Mondelez has been the leading chocolate maker in Russia since 2018 where it gets 3% of its revenue.

PepsiCo Inc.

The snack and beverage company gets 4.4% of its revenue from Russia and Ukraine, including about $3.4 billion in Russia in 2021. Bloomberg Intelligence analyst Kenneth Shea reported that exposure to Russia is likely manageable. Its local manufacturing operations consist of about 19 facilities, including potato and milk processing.

Philip Morris International Inc.

The cigarette maker gets a combined 8% of sales from Russia and Ukraine, with most from Russia. A company spokesperson said, “Our primary concern is the safety and security of our colleagues and their families, an we are monitoring the situation closely.”