Coca-Cola sales drop in Turkey, Pakistan after boycott calls: report

Coca-Cola Icecek AS saw a drop in sales in Turkey and Pakistan due to calls in the region to boycott brands with perceived links to Israel amid conflict in the Middle East and an economic slowdown, according to Bloomberg.

The Istanbul-based company’s September quarter sales volume fell by 12.2 per cent in Turkey and 22.9 per cent in Pakistan from the previous year, it said in a filing on Tuesday. Shares of Coca-Cola Icecek fell 7.1 per cent to 45.12 liras in Istanbul on Tuesday, its biggest decline since May 2023. The shares slumped as much as 4.8 per cent on Wednesday.

US fast food brands, owned by firms including McDonald’s Corp and KFC Holding Co, are among those facing a challenging operating environment in Asia, the Middle East and some parts of Europe amid calls to boycott their brands due to perceived links to Israel amid the conflict in Gaza. Many Muslims in the region changed their consumption habits since the war started, slashing demand for fast food from American retailers.

The company’s net income for the quarter dropped 61 per cent from the previous year to 5.17 billion liras ($151 million), missing the analyst estimates of 5.72 billion liras complied by Bloomberg, a filing showed on Monday. It also lowered its guidance for net-sales-revenue growth.

“This quarter was shaped by a highly dynamic environment, yielding a mix of challenges in some markets and notable successes in others,” Onur Alturk, president of Beer Group and chief executive officer of Anadolu Efes said in the report. “While our consolidated performance came in slightly below expectations, we remain committed to our long-term strategy.”

The drinks bottling and distribution company sells beers and soft drinks in multiple countries. The company did see volume growth of 1.3 per cent in other international markets, driven by strong performance in Iraq and Azerbaijan, along with a recovery in Kazakhstan. —News Desk