Boycotts Hit International Soft Drink ‌Brands in Muslim-Majority Countries

Coca-Cola and Pepsi, two of the world’s largest⁢ soft drink manufacturers, are facing significant challenges in Muslim-majority countries due to consumer boycotts.‍ The boycotts, which began in solidarity with Palestinians in the ⁣Gaza Strip, have​ resulted in‌ decreased sales for both companies.

In Egypt, sales of Coca-Cola decreased, while exports of the local brand V7 tripled in the Middle East⁤ region this year compared to‌ last year. Similarly, in Pakistan, local drinks such as Cola ‍Next and Pakola ⁣have gained popularity, now accounting for 12%⁣ of beverage purchases.

A Brief History of Boycotts

Boycotts have been used ⁤as a form of consumer protest ⁢for centuries. The concept dates back to the 18th-century sugar boycott movement in Britain, which protested against slavery. Boycotts ​were also ⁢used against apartheid‍ South Africa in the 20th ⁤century and have been employed extensively against Israel.

Impact on Sales

According to earnings data, total revenue from PepsiCo’s Africa, Middle East, and South Asia units will reach $6⁢ billion‌ in 2023. In the same year, Coca-Cola’s revenue from the Europe, Middle East, and Africa‌ region reached ⁢$8 billion.⁤ However, sales volumes in PepsiCo’s⁢ Africa, ⁣Middle East, and South Asia units⁤ did not grow significantly in the six months following the Israeli war on the Gaza Strip.

Coca-Cola sales in Egypt fell by ⁢a double-digit percentage in ‍the six months⁤ ended June 28, according to company data. In the same period last⁣ year, the ⁤volume was down 10%.

Local Brands Gain Popularity

Local brands such as Cola Next and​ V7 ‍have gained‍ popularity in Muslim-majority countries. Cola Next, whose products are cheaper than Coca-Cola and Pepsi, changed its advertising slogan in March to “Because Cola Next is Pakistani” to emphasize that it is⁢ a local product.

V7 founder Mohamed Nour said in an interview that the⁢ company’s exports are up‍ 300%​ this year compared to 2023. Noor, a former Coca-Cola executive who left in 2020 after ⁢28 years there, said V7 products are now sold in 21 countries.

Long-term Damage to Consumer ‍Loyalty

Paul Musgrave, associate professor at Georgetown University in Qatar, ‍warned of long-term damage to consumer loyalty due to boycotts. “If you change your ‌habits,​ it’s going to be hard to⁢ attract‍ you back in the long run,” he added.