By
Chimamanda U. Martha
March 20th, 2024
Starbucks has indicated that it will extend its support to Russian partners including employees to cater for their livelihood.
Starbucks Corporation (NASDAQ: SBUX) stock traded around $84.15, up approximately 0.18 % in today’s pre-market session. The multinational chain of coffeehouses announced through a letter by CEO Kelvin Johnson that it has suspended all business activities in Russia. Starbucks joins a growing list of multinational companies from the west that are suspending operations in Russia.
The top reason being, unprovoked, horrific, and unjust attacks on the Ukrainians.
“We condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected,” Kelvin noted in the letter.
Notably, the company will also cease the shipment of all products to Russia henceforth. Nonetheless, Starbucks has indicated that it will extend its support to Russian partners including employees to cater for their livelihood.
“Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood,” he added.
The coffee chain does not have cafés in Ukraine but takes pride in 130 stores situated in Russia.
Starbucks Joins Hands with Ukraine after Russia Begins This War
The war in Ukraine is coming closer to the third week. The country is being tested to its limits both in its health sector and military-wise. Moreover, the Covid crisis has not yet moved out of our horizon and now the Ukrainians have to focus on the war victims and keeping their sovereignty as a country.
The Ukraine President has openly said that should Russia win the war, then it will be the end of the world as we know it. He, however, continues to appeal with the NATO alliance to step in and help fight back the Russian military.
Former US president Donald J Trump has described Putin as a ‘wise’ and focused man while describing the west leaders as fearful and inexperienced.
Surely, it is no time for blame game but time to take action over the Kremlin and its heinous war crimes. Starbucks joins a list of major companies including Visa, PayPal, MasterCard, SWIFT, McDonald’s among others that have pulled out of Russia.
Notably, McDonald’s temporarily closed its 850 stores in Russia, where it controls 84 percent of the stores.
“In the thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate,” Kempczinski wrote in his letter. “At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
According to market data provided by MarketWatch, SBUX stock has dropped 21 percent, 28 percent, and 11 percent in the past year, YTD, and one month respectively through Tuesday. The company has a market valuation of approximately $97.15 billion.