Coca-Cola Icecek AS, the bottler for Coca-Cola in Pakistan and Turkey, has recently reported a significant drop in sales for the July-September 2024 period. This decline is largely due to the widespread boycotts against brands associated with Israel.
In Pakistan, for instance, sales plunged by 22.9%, whereas, in Turkey, the decrease was more moderate at 12.2% compared to last year. As a direct result, Coca-Cola Icecek’s stock fell dramatically by 7.1%, closing at 45.12 Turkish liras. Notably, this marked the company’s worst single-day decline since May 2023. Furthermore, on the very next day, shares continued to drop, losing an additional 4.8%.
Additionally, the boycott movement has not only affected Coca-Cola. U.S.-based fast-food chains, including McDonald’s and KFC, have also faced a decline in consumer interest. Specifically, consumers in Asia, the Middle East, and Europe have increasingly distanced themselves from American brands due to their perceived ties to Israel amid the ongoing Gaza conflict.
Moreover, Coca-Cola Icecek’s quarterly net income fell sharply by 61%, dropping to 5.17 billion liras ($151 million). This result missed analysts’ expectations, which had predicted a net income of 5.72 billion liras. Consequently, the company revised its sales growth forecast downward in response to the volatile market environment.
However, despite these challenges, not all markets performed poorly. In fact, CEO Onur Alturk pointed out that some countries saw positive growth, with sales rising by 1.3% in markets such as Iraq, Azerbaijan, and Kazakhstan. As a result, stronger demand in these regions helped partially offset losses in other areas.
