One year has passed since Israel’s war on the Gaza Strip, and the peoples of the Arab and Islamic world and others who sympathize with the Palestinians resorted to the weapon of boycotting products that appeared to support the occupation army at a time when they were unable to provide other aid to the sector, which is under bombardment and siege.
The relative length of the boycott period compared to previous campaigns that accompanied attacks on Palestinians prompts an attempt to evaluate the feasibility of popular action, which is often considered spontaneous.
Feasibility of boycott
The answer to the question about the feasibility of the boycott varies between those who see it as effective this time against companies and, by extension, the economy of countries that support Israel, and those who see it as a useless weapon that will have no effect.
The American Center (Simpson) quoted Maya Kart, professor of Middle East politics at Kennesaw State University in Atlanta, as saying: “Boycotting products from consumers in and of themselves is not necessary and sufficient to bring about a change in policies if they are not organized and do not include cultural campaigns and other pressures to deliver what is required.” Individual boycott practices do not make a difference, but collective campaigns with a specific message do.”
In the context of the same analysis, Yossi Mekelberg, a researcher at the British Chatham House Center, said: “The campaigns to boycott products in the Middle East seem far from coordinated, and the reaction from the public at the global level is fragmented. Those who support Israel may want to buy more of Israeli goods, in addition to lobbying for legislation banning BDS.”
On the other hand, a report published by the American Al-Monitor website last May said that Americana Restaurants Company, which owns the Middle East franchise for fast food restaurant chains including KFC and Pizza Hut, said that its profits in the first quarter of 2024 had shrunk by about half compared to the same period last year.
The company’s net profits in the first half of this year amounted to $80 million, a 44.8% decline over the same period last year.
He added that this decrease is due to “existing geopolitical tensions” in the Middle East and the impact of the month of Ramadan, which extended from March 10 to April 9.
In addition, the company owns the exclusive rights to other chains in the Middle East and North Africa, including Hardee’s and Krispy Kreme.
The company stated that its profits during the first quarter ending on March 31 amounted to $28 million, equivalent to almost half of its profits in the same period last year, which touched the level of $58.8 million.
The company’s revenues in the first quarter of the current year amounted to $493 million, a decrease of 16.3% compared to the same period in 2023.
Earnings before interest, taxes, depreciation and amortization fell to $101.1 million in the first quarter, compared to $126.9 million in the same period in 2023, a decline of 18.6%.
In a statement, the company said: “The decrease in revenues came as a result of the existing geopolitical tensions in the region as well as the seasonal impact of the month of Ramadan.”
American signs
Al-Monitor reported that many American brands are seen as supporting Israel in its war on Gaza, which has led to a boycott of it in the region.
Last March, the Kuwaiti Alshaya Group, which owns the franchise of the famous American coffee company (Starbucks) in the Middle East, said that it was forced to cut 2,000 jobs due to the boycott, amounting to approximately 4% of its total workforce.
In an apparent attempt to repair the damage to its reputation, Starbucks’ charitable arm, according to Al-Monitor, announced last April a donation of $3 million to World Central Kitchen (a non-profit organization based in the United States) with the aim of providing food aid to Gaza. .
In this context, the American Research Center (Atlantic Council) said in a report published last June on the effects of the Gaza war that the boycott of American products will continue to escalate.
He continued: “In countries in the Middle East that are characterized by severe restrictions on protest and dire consequences for opposition, we find that boycotting American products is a less risky way to collectively express anger over the situation in Gaza and US support for Israel.”
He went on to say: “Boycotts have occurred sporadically in the past but have lacked the momentum of the current wave.”
The research center noted that the boycott hit Starbucks in the Arab world after the company sued its workers union in the fall over a post in solidarity with Gaza on social media.
He pointed out that Alshaya Group’s decision to lay off about 2,000 workers is due to a decline in sales, noting that Starbucks’ net income in the second quarter of this year decreased by 15%.
On December 20, 2023, Laxman Narasimhan, then CEO of Starbucks, claimed that there were “fallacies regarding the company’s role in conflicts.”
The BBC noted that the list of companies affected by the boycott also includes the pizza chain (Domino’s) and the soft drink company (Coca-Cola).
Local products
The Atlantic Council pointed to the popularity witnessed by local products that have become an alternative to boycotted products, and gave an example of this with local soft drinks in Egypt, which witnessed an increase in their sales by 500%.
Since the start of the boycott campaigns in Egypt (the largest Arab country in terms of population), the demand for local soft drinks has increased and they now carry a “political flavor,” according to what press reports describe in light of the boycott of Western products.
Many Egyptian stores now display the Palestinian flag and bring alternative soft products to any product belonging to Pepsi and Coca-Cola, against the backdrop of human rights organizations’ accusations that they support Israel.
It is noteworthy that the pro-Palestinian Boycott, Divestment and Sanctions campaign accused Coca-Cola of operating a factory in the Israeli settlement of Atarot in the occupied West Bank. Palestinian rights activists also criticized Pepsi over the successor to its 2018 acquisition of the Israeli SodaStream company.
Mohamed Siam, a seller in a grocery magazine in Egypt, told Al Jazeera Net that the majority of customers are now asking for drinks such as Spiro Spates or Ouzo Blanco, and no one wants Coca-Cola or Pepsi, and this is the same thing that appears when retail groceries order from wholesalers.
In November last year, Spiro Spats said that its sales had increased by 500% since the events of October 7, 2023, and it showed The company expressed its solidarity with the Palestinians through social media.
The aforementioned company was established by a Greek immigrant named Spiro Spates in 1920 and was acquired by the small beverage production company (Sapsa) in 1998.
Although Spiro Spets was selling one package for 8 pounds ($0.17), like its Western competitors, over time it began to raise the price due to increased demand, despite the fact that this increase was not officially announced, according to the report.
Last February, the American giant McDonald’s ignited the anger of anti-Israel activists in the Middle East when its branch in Israel granted thousands of free meals to Israeli soldiers in October 2023, the same month in which Tel Aviv launched a war in Gaza that killed, wounded, and displaced hundreds of thousands.
Since October 2023, protesters have called for a boycott of the company around the world, but the Middle East has seen the most pronounced impact.
The company achieved growth of only 0.7% in the period from October to December 2023 in the Middle East, India and China, although expectations indicated growth of 5.5%.
Moreover, McDonald’s global sales grew by 3.4% in the aforementioned period compared to 8.8% for the corresponding quarter of the previous year.
McDonald’s franchisees in Saudi Arabia, Oman, Kuwait, the UAE, Jordan, Bahrain and Turkey issued statements distancing themselves from the free food campaign for Israeli soldiers and pledged $3 million in support to Gaza.
For his part, McDonald’s CEO, Chris Kempczinski, said: “The company does not expect noticeable changes as long as the war continues. It is an ongoing human tragedy and I believe it affects brands like McDonald’s.”
Last February, Starbucks lowered its annual sales growth forecast to between 4% and 6%, down from a range of 5% to 7%.
Its CEO at the time, Laxman Narasimhan, acknowledged that Starbucks had witnessed a noticeable impact on sales in the Middle East as well as within the United States due to campaigns against the company, which is headquartered in the US state of Seattle.
The report indicated that Coca-Cola has often found itself in the crosshairs of conflicts in the Middle East.
The last quarter of 2023 witnessed a 22% decline in Coca-Cola sales in Türkiye.
Activists on social media said that the pizza restaurant chain (Domino’s) was involved in providing free meals to Israeli soldiers, which put it on the boycott list, although there is no conclusive evidence of this.
According to official statistics, the company’s sales in Asia decreased by 8.9% in the second half of 2023, especially in Malaysia, which witnessed mass demonstrations demanding an end to the war on Gaza.
Last December, the office of Malaysian Prime Minister Anwar Ibrahim announced that all ships owned by, flying its flag, or destined for Israel are prohibited from docking in Malaysian ports.
