LOCAL SODA BRANDS SURGE AS GLOBAL GIANTS STRUGGLE IN MUSLIM-MAJORITY MARKETS

Coca-Cola and PepsiCo, after years of investing heavily in Muslim-majority nations such as Egypt and Pakistan, now face growing challenges from local soda brands due to consumer boycotts. These boycotts, sparked by the Gaza war, are targeting these American brands as symbols of Western influence, and by extension, Israel.

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Sales Plunge as Boycotts Gain Momentum

In Egypt, Coca-Cola’s sales have drastically fallen, while local competitor V7 has tripled its exports. Similar boycotts across the Middle East have stalled Pepsi’s growth since the Gaza conflict erupted in October. In Bangladesh, public pressure forced Coca-Cola to withdraw an ad campaign, and in Pakistan, local sodas like Cola Next and Pakola have surged in popularity.

Boycotts of global brands are not new, dating back to the 18th century and used notably against apartheid in South Africa. Many of the consumers now shunning Coca-Cola and PepsiCo cite U.S. support for Israel as a reason, particularly amid the ongoing war with Hamas. In the first half of 2024, the market share of global brands in the Middle East fell by 4%, as consumers increasingly turn to local alternatives.

 Palestinian Perspective and Call for Change

Palestinian-American businessman Zahi Khouri founded Ramallah-based Coca-Cola bottler National Beverage Company, which sells Coke in the West Bank. The company’s $25 million plant in Gaza, opened in 2016, has been destroyed in the war, he said. Employees were unharmed, he said.

Khouri said boycotts were a matter of personal choice but didn’t really help Palestinians. In the West Bank itself, he said, they had limited sales impact.

“Only ending the occupation would help the situation,” said Khouri, who supports the creation of a Palestinian state alongside Israel.

Coca-Cola and PepsiCo have faced similar challenges in the past. After Coca-Cola opened a factory in Israel in the 1960s, it endured a decades-long Arab League boycott that initially benefited Pepsi. More recently, PepsiCo’s acquisition of Israel’s SodaStream in 2018 led to further boycotts.