Local Sodas Challenge Coca-Cola and PepsiCo in Muslim-Majority Countries Amid Boycotts

Coca-Cola and PepsiCo face declining sales in Muslim-majority countries due to consumer boycotts linked to geopolitical issues. Local brands, like Egypt's V7 and Pakistan's Cola Next, are rising in popularity. The boycotts, driven by political sentiments, are challenging the market dominance of these Western beverage giants.

Coca-Cola and PepsiCo have spent decades and hundreds of millions of dollars building their brands in Muslim-majority countries from Egypt to Pakistan. However, consumer boycotts targeting the companies as symbols of American influence, exacerbated by the ongoing Gaza conflict, have spurred a sharp rise in local soda brands.

In 2023, Coke's sales plummeted in Egypt while local rival V7 saw its exports triple. Pakistani brands like Cola Next have surged in popularity; this shift is attributed to nationalistic consumer behavior. Market research firm NielsenIQ reports a 7% decline in Western beverage sales across the region during the first half of the year.

Boycotts have a long history, from Britain's 18th-century anti-slavery sugar protests to the more recent Boycott, Divestment and Sanctions movement against Israel. Despite these challenges, Coca-Cola and PepsiCo are investing in local markets, engaging communities and backing local initiatives to maintain their presence.

(With inputs from agencies.)