Local soda brands in Bangladesh, Pakistan, and Egypt are thriving as consumer boycotts against Coca-Cola and PepsiCo grow due to the ongoing Gaza conflict. These global brands, symbols of America and its support for Israel, face declining sales in these regions.
Coca-Cola sales have significantly dropped in Egypt, while local brand V7 has tripled its exports in the Middle East and beyond. In Bangladesh, public backlash forced Coca-Cola to cancel an ad campaign that opposed the boycott. Pepsi’s growth across the Middle East stalled after the Gaza war began in October.
Pakistani consumers, like Sunbal Hassan, are choosing local sodas like Cola Next over Coke and Pepsi, viewing the boycott as a way to avoid supporting U.S. tax revenue. Cola Next, a cheaper alternative, has seen a surge in popularity, leading to a supply shortage.
Market data reveals that Western beverage brands faced a 7% decline in sales across the Middle East in the year’s first half. In Pakistan, local brands like Pakola and Cola Next have increased their market share within the soft drink category from 2.5% to 12%.
While Coca-Cola and PepsiCo acknowledge the impact of boycotts in regions like Lebanon, Pakistan, and Egypt, they maintain that the overall financial effect remains limited. However, market analysts warn that breaking consumer habits may cause long-term loyalty issues.
Despite these challenges, Coca-Cola and PepsiCo continue to invest in these countries, recognizing their growth potential. For example, Coca-Cola invested $22 million in Pakistan to upgrade technology, while PepsiCo reintroduced Teem soda in a cola flavour, emphasizing its local origins.
Both companies are also working to strengthen their ties with local communities through sponsorships and charitable activities, aiming to secure their presence in these markets despite current setbacks.
