After selling its Russian Pizza Hut franchises in May, Yum Brands announced this week that it is close to selling its Russian KFC biz to a local operator. The company, which has about 1,000 KFC locations in the country, will completely exit the Russian market once the KFC transaction is complete.

While many companies have already paused or suspended business in Russia, others are leaving altogether. Here’s a list of some of the most notable:

• After temporarily closing its ~850 restaurants in Russia in March, McDonald’s announced in May that it was exiting the country after 32 years. The chain sold the biz to a Siberian licensee, who rebranded the company and recently reopened it with a new logo.
• Starbucks, too, said in May it would shutter its Russia biz, closing 130 coffee shops in the country, which are currently owned and operated by a licensee. The coffee giant was in Russia for 15 years. 
• Meanwhile, Heineken said back in March it was ending its relationship with Russia, after announcing it will stop selling products in the country along with halting advertising. The decision is likely to cost the company ~$400 million.
• Carlsberg made the same call in March, ceasing investments and sales of its flagship beer brand in Russia—a move that is expected to result in $1.4 billion in charges for the company.

And, and, and: After being one of the first companies to suspend its operations in Russia, Nike announced in June it would fully exit the country. The retailer has more than 50 stores there, but Russia and Ukraine made up less than 1% of its total business, the company previously noted.

Zoom out: In the midst of the war in Ukraine, Western corporations continue to face pressure from investors and consumers alike to wind down business in Russia. But beyond the financial implications, companies looking to make their exits may soon see their local businesses seized by the country, per a new law in the works, Reuters reported.—JS

As more companies bring manufacturing stateside, we explored what consumer-facing labels or statements they can and can’t make about being American-made. And what happens if companies use claims that skirt these rules? Well, they’ll likely hear from the Federal Trade Commission (FTC).

Pennsylvania-based Bollman Hat Company, for example, landed in hot water in 2018 when the FTC accused it of deceiving customers by claiming its products were American-made, but it turned out ~70% of its hats were imported.

• The FTC also called out American Made Matters, which was founded by Bollman CEO Don Rongione in 2009 and charged companies $99 a year to use its self-certified American Made Matters seal and be featured on a website of fellow manufacturers.

“We thought it was a more accessible standard for American manufacturers to adhere to,” Rongione told the New York Post at the time. The two parties reached a settlement in 2018, and while the company had to shift its own messaging and no longer claim to be “American Made,” it didn’t face any fines.

Made to order: But lately, other companies haven’t been so lucky. In July 2021, the FTC codified a labeling rule that allows it to seek “redress, damages, penalties, and other relief” from those that violate its “Made in USA” regulations, with the ability to seek penalties up to $43,280 per violation. Its first action under the new regulations—against a battery company called Lithionics Battery—was settled in April of this year with a $105,319.56 civil penalty for advertising that some products were “Made in USA,” when in fact, they used a significant amount of imported components, particularly from China.

Click here to read the full story.—EC

Today’s top retail reads.

Fast track: From tracing the lifecycle and environmental impact of a garment to helping generate more revenue from a single item, digital IDs could be a game changer for the fashion industry. (Vogue Business)

We all scream: Despite declaring Chapter 11 bankruptcy twice in the last 11 years, restaurant chain Friendly’s is making a comeback. And it’s not alone. (Eat This Not That)

Face off: Even cult-favorite beauty products aren’t safe from inflation, which may be a good thing for “dupe” brands hoping to go viral. (Glossy)

Tune in, turn up: Seamless marketing doesn’t just happen—it takes balance, orchestration, and a whole lotta data. Listrak’s integrated platform is all you need to deliver pitch-perfect marketing campaigns, so learn how Listrak can help your brand top the charts.*

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The numbers you need to know.

Grocers are up against a lot: shifting consumer habits, inflation, and ever-changing food trends. The latest Future Outlook report by the Food Industry Association helps put things into perspective for companies looking to stay ahead of just how consumers are consuming food.

• Among the 1,400 restaurant diners surveyed in February 2022, 64% said they bought groceries online at least a few times over the past year, up from the 52% who occasionally did so in February 2020.

Shoppers have also built up an interest in different “food rules” or were loyal to one or more “approaches to eating,” 48% of respondents said.

• For example, while 11% followed a low-carb diet, 8% were plant-based eaters.

Choices, choices: Even as prices keep rising, it didn’t deter some consumers from opting for premium grocery items. Among those surveyed, 19% said their grocery bills were up partly due to buying high-quality products. But not everyone loves to cook.

• That’s the reason 40% of respondents said they go to a restaurant in lieu of a home-cooked meal, while 28% believed that restaurants offer better choices in comparison to freshly prepped food at the grocery store.

Introducing Retail Brew’s newest debut ::drumroll:: The Sku: A Retail Brew Summit. FOMO is real, friends.

Here’s what’s on the agenda:

• Meeting demand and maximizing profit
• Managing your organization across channels
• Creating omni-channel engagement with customer journeys
• Sustainability: who is doing what and how?
• Using technology to drive sales

Early-bird pricing ends soon! Register now to save your seat (and some $$). Only $499 for a limited time!

Catch up on the Retail Brew stories you may have missed.

• The categories likely to take a hit as consumer spending slows
• Retail Brew’s must-reads on sustainability…so far
• How shoppers plan to spend on Prime Day—and the rest of the summer