Recently, after the latest Israel-Gaza conflict that started in October 2023, many Muslim-majority countries have started boycotting certain products that have heavily invested in Israel as a part of the BDS movement. They are doing so to show their support for the Palestinians suffering in Gaza and to cause economic losses for such companies.
Coca-Cola and its related products have been heavily boycotted for the past year by Muslims in the Middle East and Asia as part of this movement mainly because the company operates in illegal settlements built by Israelis in occupied Palestinian land in the West Bank. People have shifted to its alternate soft drinks, produced locally in their own country.
Let's discuss in detail why Coca-Cola is on the boycott list, its economic effects, and the alternatives we can buy.
Boycott, Divestment, and Sanctions Movement (BDS)
To understand the reason behind the Coca-Cola boycott and related products, we first have to understand the BDS (Boycott, Divestment, and Sanctions Movement) movement. This boycott is part of this movement. The BDS movement is an international movement started by Palestinians in 2005 for freedom, justice, and equality. Essentially, it stands for the principle that Palestinians are entitled to the same rights as everyone else.
The movement promotes boycotting of Israeli products and encourages businesses, pension funds, and universities to withdraw investments that support those companies that help and support the Israeli Apartheid.
The BDS movement seeks to pressure Israel into meeting what it defines as its international law obligations. These obligations include withdrawing from occupied territories, removing the separation barrier in the West Bank, ensuring full equality for Palestinians, and promoting the right of Palestinian refugees to return to their homes.
Therefore, the Coca-Cola boycott fits very well into this movement, and the latest conflict has given it a valid reason to do so. Coca-Cola is a multinational company with a large presence in Israel. Boycotting its products sends a message to the Israeli government that their actions must be stopped. Furthermore, the boycott also encourages other companies to take a stand against the Israeli government.
Why Are Muslims Boycotting Coca-Cola and Its Products?
People who supported the Palestinian cause and were part of the BDS movement were already boycotting certain companies that were linked to Israel. However, with the latest conflict that started last year, the boycott gained immense support worldwide among those who supported the Palestinian cause.
Now, come to the reason why people started particularly boycotting Coca-Cola because the company has heavily invested in Israel and even operates a factory located in Atarot, an illegal Israeli settlement constructed on land stolen from Palestinians.
The illegal settlements that are built after displacing Palestinians from their land are the main root cause of all the problems. More importantly, they also violate international law. Coca-Cola is profiting from the illegal occupation of Atarot by opening an Israeli franchise there.
After the Israel-Hamas war started in October 2023, the boycott trend surged dramatically. Many Muslims viewed that by distancing themselves from companies like Coca-Cola that profit from operations in Israel, they could hurt their profits and revenue, which in turn could force these companies to shut their operations in Israel and hurt the country's economy.
If you are looking for alternatives to food brands on the boycott list, then be sure to check out Riwaya Hala Food Section. We have listed products from trusted sellers with no ties to Israel or any companies currently being boycotted.
History of the Coca-Cola Boycott
This isn’t the first time Coca-Cola has been boycotted in the Muslim world. The brand faced boycotts in the 1960s when it established a production plant in Israel, which eventually sparked a boycott by the Arab League. Despite the company’s efforts to rebuild its brand in the region, it has always been a subject of political and economic resistance.
In recent decades, the company has expanded in Muslim-majority countries, investing heavily in key markets like Pakistan and Egypt, major markets for Coca-Cola. However, the current boycott has significantly eroded Coca-Cola’s sales, with local brands gaining market share.
What is the Impact of the Coca-Cola Boycott?
The Coca-Cola boycott, especially in the context of solidarity with Palestinians, has had notable economic impacts. While Coca-Cola has not directly disclosed major losses from the boycott, its alternative drinks have gained considerable popularity worldwide. In Egypt, brands like Spiro Spathis and the newer V7 have seen sharp increases in demand, up to 40% in 2024 compared to the previous year.
Similarly, in Pakistan last year, Coca-Cola's market share in the consumer sector fell to 5.7 % from 6.3 % in 2022, according to GlobalData. Another brand, Cola Next and Pakola, has seen a surge in demand and sales amid the boycott movement. Many restaurants and local grocery stores started replacing Coca-Cola with Cola Next and similar soft drink brands.
The most notable impact of the boycott was in Bangladesh, where Coca-Cola's sales this year have decreased by 60% compared to 2023. However, its alternative Mojo drink sales have increased by 39% since the start of the conflict in October 2023.
The impact of these boycotts isn’t just limited to sales figures; they are reshaping brand loyalty.
As consumers continue to buy local products, companies like Coca-Cola and PepsiCo may find it harder to win back the market share and trust of their customers, even after the conflict ends.
Selling on Riwaya
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Conclusion
Many people worldwide started boycotting Coca-Cola and related brands after the Israel-Hamas war in 2023 in solidarity with the Palestine cause. This boycott is a good example of how customer sentiments and beliefs can change brand loyalty.
It is still debated whether the boycott has had any effect on the outcome of the war or brought a political change. However, it has impacted the Coca-Cola business in several Muslim countries where the competitor drinks have seen an increase in their demand.
