In the wake of widespread consumer boycotts targeting Coca-Cola and PepsiCo, local soda brands are experiencing a significant rise in popularity across Muslim-majority countries. The boycotts, driven by dissatisfaction with U.S. support for Israel, and the support of companies for Israel’s war on Gaza have led to a notable decline in sales for these global beverage giants, allowing local alternatives to gain traction.
According to a report by Reuters, Coca-Cola’s sales have sharply declined in Egypt this year, while local brand V7 has seen its exports across the Middle East triple. In Pakistan, local cola brands like Cola Next and Pakola have surged, with Cola Next emerging as a popular choice for events and gatherings.
This trend follows the onset of the Gaza conflict in October, which has impacted PepsiCo and Coca-Cola’s sales in regions including Bangladesh and the Middle East. Market researcher NielsenIQ reported a 7% decrease in Western beverage sales in these areas during the first half of the year.
PepsiCo CEO Ramon Laguarta acknowledged the impact of these boycotts in an interview with Reuters, noting that while they affect certain markets, the overall financial impact remains modest. Nevertheless, data from NielsenIQ and Coca-Cola HBC indicate more significant declines, with Coca-Cola’s volumes in Egypt dropping by double digits and PepsiCo’s growth in the Africa, Middle East, and South Asia region stalling.
Both Coca-Cola and PepsiCo have stated that they do not support military actions or conflicts and maintain their commitment to neutrality. In response to the boycotts, local brands have capitalized on their regional roots and affordability to attract consumers.
Cola Next, for instance, has promoted its local identity in advertising, resonating with a growing customer base. Similarly, V7, which launched in Egypt in July 2023, has seen substantial sales growth.
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