PepsiCo, Coca-Cola, McDonald’s and Starbucks each said
Tuesday they are suspending business in Russia after that country’s invasion of
Ukraine, a symbolic move by four iconic U.S. brands.
Pepsi has sold its products in Russia for more than six
decades, even when the company had to trade its soda concentrate for
Stolichnaya vodka and warships. McDonald’s opened its first location beyond the
Iron Curtain in Moscow, just months before the Soviet Union collapsed.
In recent days, Pepsi, Coke, McDonald’s and Starbucks have
drawn criticism for continuing to operate in Russia while other U.S. companies
announced suspensions and paused sales.
Yale Professor Jeffrey Sonnenfeld compiled and made public a
list of U.S. companies that have withdrawn from Russia following President
Vladimir Putin’s invasion — and those that hadn’t. Until Tuesday afternoon,
Coke was among the most recognizable names on the spreadsheet.
“Our hearts are with the people who are enduring
unconscionable effects from these tragic events in Ukraine,” Coke said in a
brief statement Tuesday afternoon. “We will continue to monitor and assess the
situation as circumstances evolve.”
Russia represents one of the few regions worldwide where
Coke’s rival PepsiCo has a larger presence. In a regulatory filing, Coke said
its business in Ukraine and Russia contributed about 1% to 2% of its
consolidated net operating revenue and operating income in 2021.
Pepsi, on the other hand, generates roughly 4% of its annual
revenue in Russia, though it is not halting all business in the country. The
company said it will keep selling some essential products, like baby formula,
milk and baby food.
It said it will suspend Russian sales of its Pepsi-Cola, 7UP
and Mirinda brands, along with capital investments and all advertising and
promotional activities.
“As a food and beverage company, now more than ever we must
stay true to the humanitarian aspect of our business,” Pepsi CEO Ramon Laguarta
wrote in a memo to employees viewed by CNBC.
The Wall Street Journal reported earlier on Tuesday that
Pepsi was weighing different options for its Russian business, including
writing off its value. Economic sanctions have greatly complicated the process
of offloading Russian assets.
Since the Russian invasion of Crimea in 2014, many U.S.
companies have looked to reduce their exposure in both Russia and Ukraine. Some
restaurant chains, like McDonald’s, have sold off some of their company-owned
locations to local franchisees.
McDonald’s announced Tuesday all 850 of its Russian
restaurants would temporarily close. Until then, the fast food chain had stayed
silent on the war, drawing stronger criticism than the handful of restaurant
companies that condemned the invasion but kept their locations open.
About 84% of McDonald’s Russian locations are owned by the
company, while the rest are operated by franchisees. Owning more of its
restaurants means greater revenue for the company, but greater risk in times of
turmoil or economic downturn.
Starbucks went a step further than McDonald’s, saying it
would suspend all Russian business activity, including shipment of its
products. Starbucks CEO Kevin Johnson condemned the attacks in a letter on
Friday.
Of the two restaurant companies, McDonald’s has a larger
presence in the country and receives a higher percentage of its global revenue
from those sales.
Coca-Cola Pepsi McDonald’s Starbucks
Comment
In a government move to tame the country’s potato market, a total of 25 tonnes of potato arrived in Bangladesh through Dinajpur’s Hili land port from India on Saturday afternoon.
As a result, the price of potatoes came down by Tk 10-15 per kg at retail markets in the district, reports UNB’s Hili correspondent.
Md Ifsuf Ali, deputy assistant quarantine officer of Hili Land Port Plant Quarantine Centre, said on Wednesday the government decided to import potatoes to rein in the runaway price.
On the same day, importers of Hili land port applied for permission at Khamarbari in Dhaka to import potatoes, he said.
A total of 49 importers of the port got permission to import 34,000 metric tonnes of potatoes from Thursday afternoon while the import started on Saturday afternoon, said the quarantine officer.
Shahidul Islam, an importer at Hili land port, said the price of potato has increased to Tk 40 per kg at retail level, despite the season.
To deal with the situation, the government has decided to import potatoes to keep the market normal in Ramadan. Potato import from India through Hili land port started on Saturday, said the importer, adding that the price of potato decreased to Tk 25-30 per kg
Sources at the land port said that the price of potato went out of control on the pretext of a crisis in the country's market last year.
On October 30, the government allowed importing potatoes from India to keep the situation normal. Since then, the price of imported potatoes has come down in the market.
Following the market stability, the government again stopped importing potatoes through Hili land port from December 15.
-UNB
Comment
Comment
Soybean oil price may go up as Bangladesh Tariff Commission (BTC) is
considering proposal for hiking edible oil price due to higher production
costs.
Bangladesh
Vegetable Oil Refiners and Banaspati Manufacturers Association (BVORBMA), the
association of owners of edible oil refining and marketing companies, has
submitted a proposal to raise soybean oil price by Tk15 per litre.
The oil
refiners argued that traders will count losses due to higher production costs and
price hikes in the global market if soybean oil price is not adjusted.
The
refiners submitted a letter last Tuesday to Commerce Secretary Tapan Kanti
Ghosh, urging the government to readjust the prices by Sunday (tomorrow). The
refiners made the proposal a month after lowering soybean oil price by Tk14 a
litre.
Chief
Executive of BVORBMA, Nurul Islam Molla, told UNB, the situation was described
to the commerce secretary.
After a
meeting with Salman F Rahman, the prime minister's adviser for private industry
and investment on October 3, the association lowered the prices by Tk 14 a
litre. The price of a litre of unbottled soybean oil was set at Tk158, a litre
bottle at Tk178, and a 5-litre bottle at Tk880.
- UNB
Comment
Imports were expected to fall for several months due to the
massive restriction on luxury goods imports. Although the impact is not felt till
August, both imports and exports have declined since September.
According to main line operators of foreign vessels, imports
fell by 12 percent in September and exports by 16 percent compared to August
2022.
According to the main line operators of foreign vessels, in
September 2022, 1 lakh 1 thousand 493 units of import cargo containers arrived at
Chittagong port; In August the amount was 1 lakh 14 thousand 920 units. In
percentage, imports decreased by 12 percent. The import volume in July was 1
lakh 13 thousand 600 units.
Traders say that the reason for the decrease in imports is
that the Board of Revenue has imposed new duties on the import of 135 types of
non-essential and luxury goods last May. Along with these products, banks have
to pay 100% margin to open a credit card for import of less important products.
Which means, traders have to pay 1 crore cash in order to open a credit card of
1 crore Tk. The booking rate of these products abroad has also increased; And
the demand in the country has decreased. Overall, the rate of import of goods fell.
Ajmir Hossain Chowdhury, Head of Operations and Logistics of
Mediterranean Shipping Company (MSC), said that due to strict opening of
credit, volatility in dollar exchange rate and reduced demand, imports have
decreased. This trend may last till December to January.
MA Salam, head of the Asian Group and a garment trader, said
one of the main reasons for the decline in exports was the disruption of the
supply chain due to the Russia-Ukraine war. Also, due to the increase in the
price of products, buyers are more interested in everyday products than luxury
products across Europe.
However, a director of Bangladesh Shipping Agents
Association said that the export rate is low from September-November every
year. It happened this time too. Exports increased by 14 percent in September
2022 compared to September 2021. Exports are now higher than in 2019. I am
hopeful that exports will start to pick up again from November.
Comment
The Bangladesh Energy Regulatory Commission (BERC) on Sunday
announced the new price of liquefied petroleum gas for the month of October, a
drop of Tk2.91 per kg.
A 12-kg LPG cylinder would now cost Tk1200 (instead of
Tk1,235) for retail, according to the revised price.
The prices of LPG for other sizes of cylinders from 5.5 kg
to 45 kg will come down rationally, said BERC chairman Abdul Jalil, who
announced the new price at a virtual press briefing on Sunday.
As per the announcement, the price of auto gas (LPG used for
motor vehicles) was reduced to 55.92 per litre from previous price of Tk 57.55
per litre, down by Tk 1.63 per litre.
The new price will be effective from 6 pm on Sunday (October
2).
Jalil informed that the US Dollar rate was considered at Tk
106.64 in refixing the price of the LPG as private operators import it from
Middle East through foreign currency.
He said though the LPG price has substantially come down in
the global market, consumers are not getting full advantage of the downward
trend due to the high dollar price in the local market.
Last month, the dollar exchange rate was considered Tk104.02
The price of LPG, marketed by state-owned LP Gas Company,
will remain as usual as it is locally produced with a market share of less than
5%.
The LPG price went up to the highest Tk1,439 (a 12kg
cylinder) in the local market, following the start of the Russia-Ukraine war in
February this year.
The LPG price was the lowest at Tk1,225 for a 12kg cylinder
in January this year and it witnessed continuous hikes in February, March and
April.
Comment
In a government move to tame the country’s potato market, a total of 25 tonnes of potato arrived in Bangladesh through Dinajpur’s Hili land port from India on Saturday afternoon. As a result, the price of potatoes came down by Tk 10-15 per kg at retail markets in the district, reports UNB’s Hili correspondent.
The prices of daily essentials are rising alarmingly. The continuous increase in the prices of everyday products is causing distress in the households of middle and lower-income individuals. Staple items like edible oil, rice, lentils, along with newly added items like onions, flour, chicken, vegetables, and eggs are seeing...
Soybean oil price may go up as Bangladesh Tariff Commission (BTC) is considering proposal for hiking edible oil price due to higher production costs. Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association (BVORBMA), the association of owners of edible oil refining and marketing companies, has submitted a proposal to raise soybean oil price by Tk15 per litre.
Imports were expected to fall for several months due to the massive restriction on luxury goods imports. Although the impact is not felt till August, both imports and exports have declined since September. According to main line operators of foreign vessels, imports fell by 12 percent in September and exports by 16 percent compared to August 2022.