In the wake of ongoing conflict in Gaza, global soft drink giants Coca-Cola and PepsiCo are grappling with consumer boycotts in Muslim-majority countries. These boycotts, driven by perceptions of American and Israeli affiliations, have led to a significant decline in sales for both companies, while local brands are experiencing a surge in popularity.
In Egypt, Coca-Cola’s sales have plummeted this year as consumers turn to local brand V7, which has seen its exports triple compared to last year. Similarly, PepsiCo’s growth across the Middle East has stalled since the onset of the Gaza conflict. The boycotts are a reaction to the perceived alignment of these Western brands with U.S. and Israeli interests.
In Pakistan, the boycott has been especially impactful. Sunbal Hassan, a corporate executive in Karachi, opted to serve local brand Cola Next at her wedding, reflecting a broader sentiment of avoiding Western products associated with Israel. Similarly, in Bangladesh, Coca-Cola faced backlash over an ad campaign perceived as insensitive, leading to the ad’s withdrawal and an apology from the company.
This surge in support for local brands and the decline in Western beverage sales underscore a complex interplay between global politics and consumer behavior. While companies like Coca-Cola and PepsiCo emphasize their neutrality and non-affiliation with military operations, the boycotts highlight the profound impact of geopolitical conflicts on international business.
The historical context of these boycotts stretches back to earlier movements against Western brands and continues to affect consumer choices today. Despite efforts to maintain a presence in these markets, the ongoing conflict and consumer sentiment present significant challenges for global soft drink companies.