How Western brands 'left' Russia | Life in Russia after sanctions | New McDonald's & Starbucks

Summary

The video script reveals a surprising reality behind the so-called 'exodus' of Western companies from Russia. Despite public announcements of withdrawal, many brands are still present in the Russian market, operating under different names or through legal loopholes. The script describes a journey through a Moscow shopping mall, showcasing how brands like Starbucks (now 'Star's Coffee') and McDonald's (renamed 'Tasty') continue to serve customers, and how companies like Reserved and LPP maintain a presence despite sanctions. The narrator also highlights the continued availability of products from companies like Apple and Coca-Cola, suggesting that while Western brands may publicly condemn the war in Ukraine, they are finding ways to stay profitable in Russia.

Takeaways

• 📉 Over 600 foreign brands have announced their withdrawal from Russia, including major names like McDonald's, Coca-Cola, and Starbucks.
• 🕵️‍♂️ Some companies are suspected of pretending to leave Russia while still making money through indirect means.
• 🏬 A French company that owns a cosmetics brand claimed to leave but is still present on the shelves, under a different name.
• 🎨 The new Russian Starbucks, rebranded as 'Stars Coffee', was bought by Russian entrepreneurs and retains a similar concept to the original.
• 👗 Polish clothing brand Reserved, owned by LPP, reopened in Russia under different names after being sold to a Chinese consortium.
• 📦 Despite public statements, some companies continue to supply products to the Russian market through legal loopholes or middlemen.
• 🍟 The new Russian McDonald's, now called 'Tasty', continues the fast-food chain's legacy with similar food offerings but without Coca-Cola products.
• 🥤 Coca-Cola HBC, partially owned by the Coca-Cola Company, started producing 'DobriPola' as an alternative to Coca-Cola in Russia.
• 👕 Western clothing brands like Adidas and Inditex (owner of Zara) have closed physical stores but continue to make money through online sales or indirect shipping.
• 📱 Apple has stopped direct sales in Russia but new iPhones, iPads, and MacBooks are still available through partner stores.
• 🛍️ Many Western brands have found ways to stay in the Russian market, suggesting that the 'exodus' may not be as significant as it seems.

Q & A

How many foreign brands have reportedly withdrawn from Russia?

More than 600 foreign brands have announced their withdrawal from Russia.

What is the new name of the Russian Starbucks after the withdrawal of the American brand?

The new name of Starbucks in Russia is Star's Coffee.

Who bought the Russian Starbucks chain after the American company left?

The Russian Starbucks chain was bought by Timothy, a famous Russian rapper, and Anton Pinsky, a well-known restaurateur.

What is the new logo of the Russian Starbucks like?

The new logo resembles the famous American mermaid but features a Russian girl in a traditional Russian headpiece.

Which French company that owns a cosmetics brand is mentioned in the script, and what happened to its presence in Russia?

L'Occitane, a French company, vowed to leave Russia in May but its products are still present on the shelves under a different name, Lexitan.

What happened to the Polish clothing brand Reserved in Russia after the sanctions?

Reserved was sold to a Chinese consortium, which reopened its shops under different names such as RE, CR House, XS, and Say Cuh Mojito.

How did Coca-Cola manage to leave Russia while still maintaining a presence in the market?

Coca-Cola stopped supplying coke to Russia, but its local bottler, Coca-Cola HBC, started producing Dobripola, an equivalent of the iconic soft drink.

What is the new name of the Russian McDonald's after the American brand left?

The new name of the Russian McDonald's is Tastee.

What did the new Russian McDonald's change on the menu besides the name?

The new Russian McDonald's changed the names of the items on the menu, such as renaming the Big Mac to Grand Deluxe, and removed Coca-Cola and Pepsi products.

Which Western brands are still operating in Russia despite the sanctions?

Some Western brands like Adidas, Apple, and several clothing brands including New Yorker, Collins, and Benetton continue to operate in Russia either directly or indirectly.

What is the situation with Apple products in Russia after the company halted sales?

New Apple products like iPhones, iPads, and MacBooks continue to flow to the Russian market through partner stores despite the sanctions.

How do some of the brands maintain their presence in Russia while publicly announcing their exit?

Some brands maintain their presence by selling their Russian operations to local businesses or through indirect shipping methods, allowing them to continue making money in the market.

Outlines

00:00

🏪 Western Brands' Tactics in Russia Amidst Sanctions

The script describes a phenomenon where numerous international companies, including McDonald's, Coca-Cola, and Starbucks, have publicly announced their withdrawal from Russia. However, some are suspected of continuing to operate under different names or ownership to circumvent sanctions and maintain revenue. The narrator visits a Moscow suburb mall to investigate these claims, noting the absence of certain brand names from mall signs. They find that Starbucks has been rebranded as 'Star's Coffee' and is now owned by Russian entrepreneurs, while a French cosmetics brand, Luxitan, still appears on shelves despite a public exit, having become a separate legal entity under a slightly altered name. The summary highlights the lengths some brands go to maintain a presence in the Russian market.

05:01

👗 Polish Clothing Brands Evade Sanctions Through Legal Loopholes

This paragraph delves into the situation of Polish clothing brand Reserved, which was owned by LPP and had a significant presence in Russia. Despite the brand's apparent closure, it has re-emerged under different names such as RE, CR House, XS, and Say Cuh Mojito, following a sale to a Chinese consortium. The narrator suggests that this maneuver allows the brand to continue business in Russia through middlemen, preserving jobs and revenue. The summary also mentions Levi's and other brands that have reopened under new names, and the ongoing presence of closed stores like Zara, hinting at potential future re-openings.

10:01

🥤 The Dual Presence of Coca-Cola and McDonald's in Russia

The script discusses how Coca-Cola and McDonald's, despite announcing their exit from Russia, maintain a presence through indirect means. Coca-Cola HBC, a local bottler with partial ownership from the parent company, produces a substitute drink called Dobripola, while McDonald's has been bought by a local businessman and rebranded as 'Tasty.' The narrator visits the new McDonald's, noting that the food and service remain largely unchanged except for the absence of Coca-Cola and Pepsi products. They also describe the humorous efforts to cover the 'M' on McDonald's condiment packets post-rebranding.

15:01

🛍️ The Ongoing Presence of Western Brands in Russian Retail

The final paragraph addresses the continued availability of Western brands in Russia, despite public statements of withdrawal. Brands like Adidas, Apple, and Inditex (owner of Zara) are mentioned as still having a presence either through indirect shipping, online sales, or rebranding. The narrator visits a mall and finds that while some stores are closed, they are not entirely leaving the market, suggesting a temporary closure rather than a complete exit. The summary highlights the economic incentives for these companies to maintain a presence in Russia, despite the ongoing conflict in Ukraine.

Keywords

💡Western companies

Western companies refer to businesses that originate from Western countries, typically those in North America and Europe. In the context of the video, it discusses the departure of these companies from Russia due to political tensions. The script mentions a 'mass exodus' of major international brands, indicating a significant number of companies choosing to withdraw their operations.

💡Exodus

Exodus, in this context, metaphorically describes a large-scale departure of people or entities, in this case, the withdrawal of Western companies from Russia. The term is used to emphasize the magnitude of the situation, suggesting a significant number of businesses leaving simultaneously.

💡Sanctions

Sanctions are measures imposed by countries or international bodies to force a change in behavior by another country, typically through economic means. In the video, sanctions are implied to be the driving force behind companies leaving Russia, as a response to political events.

💡McDonald's

McDonald's is a global fast-food chain mentioned in the script as one of the companies that have withdrawn from Russia. The video discusses how the brand has been replaced by a local version called 'Tasty and That's It', illustrating the impact of Western companies' departure on local markets.

💡Starbucks

Starbucks is an international coffeehouse chain that, according to the script, has left Russia. The video describes how Starbucks' cafes were sold to Russian entrepreneurs and rebranded as 'Star's Coffee', showing an example of how some businesses adapt to the absence of Western brands.

💡Luxitan

Luxitan is a French cosmetics brand mentioned in the script. The video explains that despite announcing a withdrawal from Russia, the brand's products are still present in stores under a different name, 'Lexitan', suggesting that some companies may be circumventing the withdrawal announcements.

💡Reserved

Reserved is a Polish clothing brand that, as per the script, has rebranded its stores in Russia under different names such as 'RE' and 'CR House' after the parent company LPP announced its exit. This illustrates the strategy some companies use to maintain a presence in the market despite public withdrawal announcements.

💡Coca-Cola

Coca-Cola is a globally recognized soft drink brand that, according to the video, has stopped supplying its products to Russia. However, the script reveals that a local bottler is producing a substitute brand, 'Dobripoła', showing how the brand indirectly maintains a presence in the market.

💡Inditex

Inditex is the world's largest clothing retailer, owning brands like Zara, which are mentioned in the script as having temporarily closed their stores in Russia. The video suggests that these closures might not be permanent, as the stores still have their inventory intact, hinting at a potential reopening.

💡Apple

Apple is a multinational technology company that has ceased direct sales in Russia, as mentioned in the script. However, new Apple products are still available through partner stores, indicating that the company continues to generate revenue in the country despite the withdrawal.

💡Economic presence

Economic presence refers to the activity and influence a company or brand has in a particular market. The video's theme revolves around the economic presence of Western brands in Russia, suggesting that while some have publicly withdrawn, they maintain their presence through various means, reflecting the complexity of global business operations.

Highlights

More than 600 foreign brands have announced their withdrawal from Russia.

Some companies are suspected of pretending to leave Russia while still making money there.

A French company that owns a certain brand claimed to leave Russia but its products are still present on shelves.

The reporter visited a Moscow suburb mall to investigate the situation of Western brands post-exodus.

Starbucks has rebranded as 'Star's Coffee' in Russia after being sold to Russian entrepreneurs.

Luxitan, a French cosmetics brand, supposedly left Russia but its products are still available.

The Russian branch of Luxitan has become a separate legal entity under a different name, Lexitan.

Polish clothing brand Reserved reopened in Russia under different names after being sold to a Chinese consortium.

LPP, the Polish retailer, continues to make money in Russia despite appearing to have exited.

McDonald's has been rebranded as 'Tasty' in Russia, with a new logo and some menu changes.

Coca-Cola has stopped direct supply to Russia but its local bottler produces a substitute brand, Dobripo.

Inditex, the world's largest clothing retailer, has closed stores in Russia but maintains an online presence.

Adidas products are still available in Russia through indirect shipping methods.

Some Western brands have not stopped operating in Russia and remain silent about the Ukraine situation.

Apple has technically left Russia but new products continue to be available in the market.

The exodus of Western brands from Russia may not be as significant as it seems in the retail sector.

Despite the war in Ukraine, it appears that many companies dislike losing money more than they dislike the conflict.

Transcripts

how many western companies have left

russia the list goes on and on

a mass exodus of major international

companies mcdonald's coca-cola starbucks

more than 600 foreign brands have

announced their withdrawal from russia a

barrage of businesses step in but what

if i told you that some of these

companies are just pretending that they

pulled out while still quietly making

money in russia a french company that

owns this brand vowed to leave russia in

may but uh if you take a look at the

shelves right here somehow it's still

present i went to a typical shopping

mall in moscow suburb to see what's

really been going on since foreign

companies announced their exodus from

russia i literally jumped on a kids

train to evade a security guy who tried

to stop me from filming the new signs on

western shops and i did a lot of things

i don't usually do to take you behind

the scenes to see how some of the

world's most famous brands are defying

sanctions to make their way back into

the russian market

make sure to watch till the end to see

what the new russian starbucks looks

like and why they've crossed out the m

on every mcdonald's catch-up in moscow

it's hilarious so

now it's someone's job

[Music]

we're getting closer

and by the way uh

take a look at the signs uh outside the

mall

it looks like some company names are

missing

could be a sign of the ongoing changes

[Music]

this is a typical moscow mall where

people go shopping after work or come to

hang out on weekends the reason i chose

this one is because i heard that some of

the western clothing brands had reopened

here under different names but first

let's grab a coffee in a newly opened

russian starbucks which is now called

star's coffee

cappuccino

[Music]

starbucks is a good example of a company

that truly left russia after 15 years in

this market they sold their entire

russian chain of 130 cafes and 2 000

employees to timothy a famous russian

rapper and anton pinsky a well-known

restaurateur the new owners left well

enough alone even the new logo resembles

the famous american mermaid only now

it's a russian girl in a traditional

russian headpiece

[Music]

they've managed to keep the main concept

of starbucks is when you sell extremely

uh like overpriced but

very mediocre

coffee and then you act as if you are

like the best barista in town

[Music]

enough coffee let's go to work

well see this russian sign up there

well that's the name of a famous uh

cosmetics brand

written in cyrillic letters luxitan

a french company that owns this brand

vowed to leave russia in may but uh if

you take a look at the shelves right

here

come take a look

somehow it's still present

[Music]

at first luxitan didn't want to pull out

but after public outcry it made a u-turn

and closed its russian stores the

company also released a statement

condemning the unjustified invasion of

ukraine laksidan specifically stated

that they will no longer supply products

to any russian retailers

well let's see if this is really true

[Music]

[Music]

[Music]

same nice job girl same product same

outrageous prices the only thing that's

changed inside this shop

is the sign

well the luxetthan's reopening has gone

pretty much unnoticed

in the western media and what i found in

the local reports is that

the russian range of this french

corporation has become a separate legal

entity

uh

and uh it also has a different name now

not

loxitan but

lexitan just in russian

but i mean it still sells

french skin creams

shampoos body lotions and whatnot so

what's the difference

now let's see what's going on with

clothes

take a look at this

sign up there r e

never heard this brand well i bet you

won't find another store in the world

with this name but

if you uh check out the labels you'll

see that it's uh it's a pretty well

known

clothing brand from poland

reserved

this is reserved

[Music]

this is reserved

this is reserved

it's pretty much every

item of clothing in the shop

it's uh it's reserved reserved and

several other clothing brands that were

represented in russia are owned by

polish clothing retailer lpp chai poland

has been among the fiercest proponents

of anti-russian sanctions since day one

of russia's offensive in ukraine and its

flagship apparel company closed its

doors in russia within the first few

months of the invasion several months

later however lpp sold its russian

company to a chinese consortium which

reopened its shops under different names

so what used to be reserve became re

crop

became cr house xs and say cuh mojito

was certain just m you might say well

maybe this was just a trick

right to sell out the remaining stock

and this doesn't mean that they continue

business

in russia

because you know some shops like uh

japanese uniqlo or uh swedish h m they

reopened their stores for a short time

only to uh sell out the you know what

they had left well you know

let's uh see if this is the case nope

you can clearly see from the kind of

clothes on the shelves that this is a

new collection designed for autumn the

only thing is that they've stuck a label

with a higher price on every price tag

in the shop

[Music]

correct me if i'm wrong but this looks

like the polish company has found a

legal loophole to stay in russia i mean

its products are being shipped to russia

uh you know uh it's still making money

in this market only now they have to

deal with the chinese middlemen and you

know i'm not trying to shame anyone far

from it

i mean let's not forget that for one

thing uh by staying in the country

uh the company preserves the jobs of

hundreds if not thousands of ordinary

people the reason why lpp quietly

maintaining its presence in russia is

obvious if you look at the numbers

553 of its

2200 shops are in russia this is almost

a quarter closing them for good would

mean a nearly 25 loss of revenue for the

polish company according to forbes and

while the polish government is sending

tons of weapons to ukraine the polish

clothing brand is sending tons of

garments to russia nothing personal just

business one of levi's stores in moscow

is also reopened under a different name

jns it has a new owner new sign but the

same iconic american jeans on the

shelves

well you know i know it's off topic but

since i was passing by the new russian

mcdonald's which is now called

tasty and that's it i thought you know i

would give it a try

besides this is going to be my first

time here so

just like starbucks the american fast

food company sold this russian business

which includes around 800 restaurants to

a local businessman the new owner

decided to create a totally different

logo which didn't find many fans here

and became the butt of endless jokes on

the internet

um

[Music]

apparently potatoes for french fries

were among the few things that had to be

imported for russian mcdonald's this and

famous american soft drinks that also

left russia after february 24th are now

missing in the reopened restaurants

coca-cola indeed stopped supplying coke

to russia but its local bottler

coca-cola hbc where the parent company

has a 20 stake is now producing

dobripola the equivalent of the iconic

soft drink this allows the company's

lawyers to claim that coca-cola is still

in russia and sued those trying to

import the original drink through

different schemes in russian ports so

coca-cola managed to leave russia and

stay in russia at the same time smart

isn't it

[Music]

[Music]

honestly i i see no big difference

i mean some of the ingredients are

different um the names on the menu are

different say

a big mac it's now called

grand

deluxe

yeah

the fare is the same i mean same old

junk food and i've seen a lot of uh

vloggers doing reviews negative reviews

uh about the food in mcdonald's i just

honestly i see no difference

other than that

there are no

coke or pepsi

uh i got a sprite but that's probably

leftover

uh also there are no uh pepsi or

coca-cola cups just this uh you know

plain

plastic cups that they use instead

this one is really funny uh so they

still have um

the old sauces right

but uh

they now scribble over

the m letter on every

packet

uh it's hilarious so now it's someone's

job

to

you know cross out the m ladder on every

packet of

ketchup or mayonnaise

[Music]

we've come to a section of the mall

where uh there are several closed stores

like

zara right here uh poland bear bershka

oysho

these brands are owned by a spanish

corporation called inditex which is the

largest bastion company in the world

and uh there is also the japanese

apparel store uniclaw which also closed

following the events in ukraine it's a

bit of a stretch to claim that this has

turned the small into wasteland there

are plenty of other clothing brands

still available here but if you look at

the map you'll see that the closed doors

occupy the most expensive central part

of the shopping center meant for anchor

tenants losing clients like these is a

blow to every mall for example inditex

had opened over

500 stores in russia over the past few

decades

well a few things to notice though

this sign right here says

that the zara

closed temporarily and

if you take a look inside you can see

that all the items are still on the

shelves and the mannequins have their

clothes on what i'm getting from this is

you know yes we're closed

for now

but we're not leaving just yet inditex

never said a word about the war in

ukraine they only cited logistics when

explaining their decision to hold sales

in russia the company still pays rent to

russian malls even though its stores

remain closed

well besides zara and some other brands

are still available online and you can

go to

any major

marketplace in the internet and uh get

zara

bershka pollen bear you know and what

not uh not sure if they uh if they sell

uh

a new collection though but uh probably

they're selling out the remaining stock

the leftover but

you know the fact is they're still here

and they're still making money in russia

adidas an iconic german sportswear

company also announced it was exiting

russia prompting fears that the famous

russian mafia and gopniks would have

nothing to wear

in this shopping center their only store

was indeed closed but here is what i

found just next door alright well let's

see what we've got

adidas

[Music]

just one

all right

the pair of white

sneakers from adidas

for

7500 rubles apparently some adidas

products are still available in a

russian multi-brand sportswear store and

from what i've learned in the local

media the german company continues

shipping to russia only now it's done

indirectly

[Music]

also there are a whole bunch of western

clothing brands that kept silent about

ukraine and never stopped operating in

russia for a single day they just sat it

out like the german brand new yorker

australia's collins and italy's united

colors of benetton the latter announced

it'll open 40 new shops in russia over

the next three years in the store i

visited i was told it's business as

usual

[Music]

but what about things more sophisticated

than shoes and t-shirts say iphones are

they still available in russia

apparently they are

technically apple has left russia

halting sales and limiting apple pay now

i can't use my iphone to buy things i

have to switch to a banking card or

withdraw cash

but new iphones ipads and macbooks

continue to flow to the russian market

despite the sanctions

[Music]

attack

[Music]

[Music]

again the american company doesn't sell

anything directly but its official

website in russia still urges customers

to buy apple products in partner stores

like the one i went to so apple may have

left russia but it's still making money

here

still i wanted to get an honest opinion

from someone who works in the small and

knows the situation from inside so i

went through the small nail salon for a

small talk and i guess my nails look

better now too

eventually

[Music]

so it's not all roses of course and i'm

sure there are areas where the absence

of certain western companies may have a

greater impact than in retail but if

this shopping mall is anything to go by

then the much vaunted exodus of western

brands is just a lot of hot air maybe

they don't like the war in ukraine but

they hate losing money

even more