Krispy Kreme’s famed glazed donuts are now being served up in Russia by a local knockoff after the US company pulled up stakes following Vladimir Putin’s invasion of Ukraine.
The new chain — owned by Arkady Novikov, Krispy Kreme’s former franchisee in Russia — has been rebranded as Krunchy Dream.
Novikov received approval from Russian regulators to trademark the name in September, according to the business news outlet RBC, whose report was cited by Reuters.
The Charlotte, NC-based company revealed in an August filing that it ceased operating its 30 Krispy Kreme stores in Russia.
It was one of several big brand names that left after Russian forces rolled into Ukraine in February.
McDonald’s, which ended its operations in Russia in June, has been rebranded “Vkusno & tochka,” which translates roughly to “tasty and that’s it.”
The food served up by the fast food chain still uses the equipment that was left behind by McDonald’s franchises.
Starbucks, the Seattle-based coffee chain, also pulled up stakes from Russia. Its stores have been rebranded as “Stars Coffee.”
All 130 Starbucks stores in Russia were bought by local Russian businessmen.
As of late November, more than 1,000 Western companies have withdrawn from Russia, according to a running count maintained by Yale University’s School of Management.
Western governments have also imposed sanctions on Russia, including those against its energy sector, in the wake of its invasion of Ukraine.
The Russian Finance Ministry released data last week which showed that tax revenue from sectors that do not include oil and gas fell by 20% in October, according to The Washington Post.
Rosstat, the Russian state statistics agency, reported that retail sales dropped 10% year over year in September while cargo turnover fell 7%.
In the previous two quarters, the Russian economy contracted by 4.1% and 4% respectively. The Russian Central Bank has warned that fourth quarter GDP could fall by as much as 7.1%.
[Written in collaboration with other media outlets with information from the following sources]
