Local Sodas Surge Amid Boycotts of Coca-Cola and Pepsi in Muslim-Majority Countries

Coca-Cola and PepsiCo face declining sales in Muslim-majority countries due to boycotts over political affiliations. Local brands like Egypt's V7 and Pakistan's Cola Next are rising in popularity as these Western giants struggle. Despite setbacks, both companies are investing in local markets and community initiatives to maintain relevance.

Muslim-majority countries from Egypt to Pakistan are seeing a significant rise in local sodas, fueled by consumer boycotts against Coca-Cola and PepsiCo, targeting them as symbols of America and Israel amidst the Gaza conflict. As a result, brands like Egypt's V7 and Pakistan's Cola Next are experiencing a surge in popularity.

The backlash is already impacting sales: Coca-Cola's sales in Egypt have plummeted, and Pepsi's growth in the Middle East has slowed dramatically. Market researchers like NielsenIQ note a 7% drop in sales for Western beverage brands in the region during the first half of this year.

Despite these challenges, Coca-Cola and PepsiCo view these countries as pivotal for growth. Both companies are ramping up investments and embedding their brands within local communities through sponsorships and other initiatives, aiming for long-term resilience even as current tensions persist.

(With inputs from agencies.)