Widespread boycotts in the Middle East are "hammering" major brands such as Coca-Cola, KFC and Starbucks, said the Financial Times. "From Egypt to Indonesia and Saudi Arabia to Pakistan, consumers are shunning goods" produced by popular food and drink multinationals in protest against "their perceived support for Israel in the war in Gaza".
'One in three' join boycott An Edelman poll of 15,000 consumers across 15 countries found that more one in three respondents were "boycotting a brand viewed as supporting a side in Israel's war on Gaza", said the Middle East Eye. And "oil-rich Gulf states and large Muslim-majority countries" are "leading the way". In Saudi Arabia, 71% of respondents said they were taking part, followed by the UAE and Indonesia.
The Boycott, Divestment and Sanctions Movement, a non-violent, Palestinian-led campaign targeting Israel's economy, has been gaining traction for the past two decades, but has garnered significant further support since the outbreak of the Gaza conflict.
'Now hitting revenues' The targeting of brands may have "symbolic importance", said foreign affairs think-tank Stimson, but Israel's economic "strength lies in sectors such as technology, pharmaceuticals and defence", areas that are "less susceptible to consumer boycotts".
Yet for the individual affected brands, boycott action is "now hitting revenues", said the FT. The intensity of the boycotts was described as "unprecedented" by Amarpal Sandhu, the chief executive of Americana Restaurants, owner of brands including KFC, Pizza Hut and Krispy Kreme. His company announced earlier this week that its second-quarter profits were down by 40% compared with the same period last year. Mondelez and L'Oréal both reported a 2% hit to sales growth as a result of boycott action.
While many multinational corporations have been able to "absorb the hit to sales as a result of their geographic and category spread", said the FT, franchise operators in countries "where boycotts are rife" are getting off "less lightly".
But the rejection of Western products has also "presented a crucial opportunity for new emerging local brands", said The Jerusalem Post. In Egypt, products from homegrown soft-drinks company Spiro Spathis have "become a preferred substitute for Coca-Cola and Pepsi throughout the country". |