Boycotts Prove Effective as Middle Eastern Rivals Thrive

In the wake of the Genocide in Gaza, consumers have decided to tactfully shun all brands that openly and explicitly support Israel and the IDF. In recent weeks, McDonald’s Corp. Chief Executive Officer Chris Kempczinski has warned that his firm is seeing “meaningful business impact” in the Middle East due to “misinformation” spreading about his company. Meanwhile, shares of American Restaurants International Plc- the Middle East franchise operator for KFC, Pizza Hut, Krispy Kreme and Hardee’s- declined as much as 27% on the Saudi stock exchange in the months after the genocide began. Among these companies are Starbucks and Coca-Cola. While such boycotts are certainly having an adverse effect on these companies, the boycotts are likewise creating opportunities for other companies in the Middle East.

One of the companies seeing a surge in business amid the boycotts is Coffeol, a chain of Lebanese coffee shops. Coffeol’s founder, Antoine Tohme, has publicly supported Palestine, and this has resonated well with many in the region. Despite the setback suffered by Starbucks in the region, Coffeol has seen its sales rise by 25%. Another company benefiting from the boycotts is Barbican, a non-alcoholic malt beverage that’s popular in the Middle East. Barbican’s sales have surged by an impressive 100% in Saudi Arabia since Coca-Cola was boycotted. Saudis are said to be turning to Barbican as an alternative to Coca-Cola, which is viewed by some as a company controlled by Jewish interests.

Moreover, in Bahrain, shoppers have been flocking to LuLu Hypermarket, where they are enthusiastically purchasing Turkish and Iranian products. The preference for these brands is partly driven by the fact that these countries openly support Palestine. As a result, LuLu Hypermarket is now expanding its offerings of Turkish and Iranian products.

The boycotts are not going unnoticed by the companies that are being targeted. Coca-Cola, for instance, has taken steps to reassure consumers that it is a company that’s committed to diversity and equality. In a statement released to the public, Coca-Cola said that they are “committed to respecting human rights, including the right to peaceful protest” and that they are “committed to creating an inclusive work environment that values all people, regardless of their race, ethnicity, gender, or sexual orientation.” [https://www.bloomberg.com]