PepsiCo mulls sale of Russian operations

PepsiCo Inc. is reportedly seeking an exit from the Russian market, with a possible sale of its entire operations in the warmongering country.

According to a Wall Street Journal report cited unnamed “people familiar with the matter,” the company was “exploring options for its business in Russia, including writing off the value of the unit.” Revenue from PepsiCo”™s Russian unit was $3.4 billion in 2021 but writing off the unit would not have a negative effect on the company because, according to the Journal’s sourcing, “it contributes little to PepsiCo”™s earnings.”

Since Russia”™s invasion of Ukraine, many major U.S. corporations have announced the suspension of operations in the Russian market. PepsiCo had come under criticism for remaining in Russia.

PepsiCo generates 4.4% of its revenue, or $3.4 billion, coming from that market. The company has been among the firms being pressured by New York State Comptroller Thomas DiNapoli to rethink their Russian business. DiNapoli controls the state”™s $280 billion pension funds, which includes PepsiCo shares, and said it would be in the company”™s best interests to “address various investment risks associated with the Russian market.”