From Egypt to Pakistan, Coke and Pepsi boycott over Gaza lifts local sodas 

A worker pushes a wood pilot loaded with packs of Cola Next at a warehouse in Karachi, Pakistan on May 9, 2024. (REUTERS)
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Updated 04 September 2024
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From Egypt to Pakistan, Coke and Pepsi boycott over Gaza lifts local sodas 

  • In Pakistan, local colas like Cola Next and Pakola soared in popularity to become about 12% of soft drinks category from 2.5% previously 
  • Cola Next’s factories cannot meet the sharp surge in demand, CEO of brand’s parent company Mezan Beverages said in an interview 

KARACHI/CAIRO/NEW YORK: Coca-Cola and rival PepsiCo. spent hundreds of millions of dollars over decades building demand for their soft drinks in Muslim-majority countries including Egypt to Pakistan. 
Now, both face a challenge from local sodas in those countries due to consumer boycotts that target the globe-straddling brands as symbols of America, and by extension Israel, at a time of war in Gaza.
In Egypt, sales of Coke have cratered this year, while local brand V7 exported three times as many bottles of its own cola in the Middle East and the wider region than last year. In Bangladesh, an outcry forced Coca-Cola to cancel an ad campaign against the boycott. And across the Middle East, Pepsi’s rapid growth evaporated after the Gaza war started in October.
Pakistani corporate executive Sunbal Hassan kept Coke and Pepsi off her wedding menu in Karachi in April. She said she didn’t want to feel her money had reached the tax coffers of the United States, Israel’s staunchest ally.
“With the boycott, one can play a part by not contributing to those funds,” Hassan said. Instead, she served her wedding guests Pakistani brand Cola Next.




An Egyptian walks next to the bottles of Coca-Cola and other products on shelves, in Cairo, Egypt, on August 27, 2024. (REUTERS)

She is not alone. While market analysts say it is hard to put a dollar figure on lost sales and PepsiCo. and Coca-Cola still have growing businesses in several countries in the Middle East, Western beverage brands suffered a 7 percent sales decline in the first half of the year across the region, market researcher NielsenIQ says.




An Egyptian supermarket owner shows bottles of Egypt's local beverage brands Spiro Spathis and Diva Masr at his store, in Cairo, Egypt on September 1, 2024. (REUTERS)

In Pakistan, Krave Mart, a leading delivery app, has seen local cola rivals like Cola Next and Pakola soar in popularity to become about 12 percent of the soft drinks category, founder Kassim Shroff told Reuters this month. Before the boycott, the figure was closer to 2.5 percent.
Shroff said Pakola, which is ice-cream soda flavored, made up most of the purchases before the boycott. He declined to provide figures for Coca-Cola and PepsiCo. sales.
Consumer boycotts date back at least as far as an 18th century anti-slavery sugar protest in Britain. The strategy was used in the 20th century to fight apartheid in South Africa and has been widely wielded against Israel through the Boycott, Divestment and Sanctions movement.




A Pepsi refrigerator is seen at a local corner store with Pepsi and its drinks displayed for sale in Isa Town, Bahrain, August on 30, 2024. (REUTERS)

Many consumers shunning Coca-Cola and PepsiCo. cite US support of Israel over decades, including in the current, ongoing war with Hamas. “Some consumers are deciding to make different options in their purchases because of the political perception,” PepsiCo. CEO Ramon Laguarta told Reuters in a July 11 interview, adding that boycotts are “impacting those particular geographies” such as Lebanon, Pakistan and Egypt.
“We will manage through it over time,” he said. “It’s not meaningful to our top line and bottom line at this point.”
PepsiCo’s total revenue from its Africa, Middle East and South Asia division was $6 billion in 2023, earnings releases show. The same year, Coca-Cola’s revenue from its Europe, Middle East and Africa region was $8 billion, company filings show.
In the six months following the Oct. 7 Hamas attacks on Israel that triggered the invasion of Gaza, PepsiCo. beverage volumes in the Africa, Middle East and South Asia division barely grew, after notching up 8 percent and 15 percent growth in the same quarters of 2022/23, the company said. Volumes of Coke sold in Egypt declined by double-digit percentage points in the six months ended June 28, according to data from Coca-Cola HBC, which bottles there. In the same period last year, volumes rose in high single digits.
Coca-Cola has said it does not fund military operations in Israel or any country. In response to a Reuters request, PepsiCo. said neither the company “nor any of our brands are affiliated with any government or military in the conflict.”
Palestinian-American businessman Zahi Khouri founded Ramallah-based Coca-Cola bottler National Beverage Company, which sells Coke in the West Bank. The company’s $25 million plant in Gaza, opened in 2016, has been destroyed in the war, he said. Employees were unharmed, he said.
Khouri said boycotts were a matter of personal choice but didn’t really help Palestinians. In the West Bank itself, he said, they had limited sales impact.
“Only ending the occupation would help the situation,” said Khouri, who supports the creation of a Palestinian state alongside Israel.
Israel’s government did not respond to a request for comment.
HISTORICAL TARGETS
The big soda companies are no stranger to pressure among the Muslim world’s hundreds of millions of consumers. After Coke opened a factory in Israel in the 1960s, it was hit by an Arab League boycott that lasted until the early 1990s and benefited Pepsi for years in the Middle East.
Coke still lags Pepsi’s market share in Egypt and Pakistan, according to market research firm GlobalData.
PepsiCo, which entered Israel in the early 1990s, itself faced boycotts when it purchased Israel’s SodaStream for $3.2 billion in 2018.
In recent years though, Muslim-majority countries with young, rising populations have provided some of the soda giants’ fastest growth. In Pakistan alone, Coca-Cola says it has invested $1 billion since 2008, yielding years of double-digit sales growth. PepsiCo. had similar gains, according to securities filings.
Now, both are losing ground to local brands.
Cola Next, which is cheaper than Coke and Pepsi, changed its ad slogan in March to “Because Cola Next is Pakistani,” emphasizing its local roots.
Cola Next’s factories cannot meet the surge in demand, Mian Zulfiqar Ahmed, the CEO of the brand’s parent company, Mezan Beverages, said in an interview. He declined to share volume figures.




Zulfiqar Ahmed, CEO of Mezan Beverages (Pvt) Ltd, that makes Cola NEXT, speaks with Reuters during an interview at his office in Karachi, Pakistan, on May 3, 2024. (REUTERS)

Restaurants, Karachi’s private schools association and university students have all taken part in anti-Coca-Cola actions, eroding goodwill built through sponsorship of Coke Studio, a popular music show in Pakistan.
Exports of Egyptian cola V7 have tripled this year compared to 2023, founder Mohamed Nour said in an interview. Nour, a former Coca-Cola executive who left the company after 28 years in 2020, said V7 was now sold in 21 countries.
Sales in Egypt, where the product has only been available since July 2023, were up 40 percent, Nour said.
Paul Musgrave, an associate professor of government at Georgetown University in Qatar, warned of long-term damage to consumer loyalty due to boycotts. “If you break habits, it’s going to be harder to win you back in the long run,” he said, without giving an estimate of the financial cost to the companies.
BANGLADESH BACKFIRE
In Bangladesh, Coke launched advertising showing a shopkeeper talking about the company’s operations in Palestine.
After a public outcry over perceived insensitivity, Coke pulled the ad in June and apologized. In response to a question from Reuters, the company said the campaign “missed the mark.”
The ad made the boycott worse, said one Bangladeshi advertising executive, who declined to be named because he was not authorized to speak to the media. Other American brands seen as symbols of Western culture, such as McDonalds and Starbucks, also face anti-Israel boycotts.
Market share for global brands fell 4 percent in the first half of 2024 in the Middle East, according to NielsenIQ. But the protests have been more visible against the widely-available sodas.
As well as boycotts, inflation and economic turmoil in Pakistan, Egypt and Bangladesh eroded consumers’ buying power even before the war, making cheaper local brands more appealing.
Last year, Coke’s market share in the consumer sector in Pakistan fell to 5.7 percent from 6.3 percent in 2022, according to GlobalData, while Pepsi’s fell to 10.4 percent from 10.8 percent.
FUTURE PLANS
Coca-Cola and its bottlers, and PepsiCo, still see the countries as important areas for growth, particularly as Western markets slow down.
Despite the boycotts, Coke invested another $22 million upgrading technology in Pakistan in April, it said in a press release at the time.
Coca-Cola’s bottler in Pakistan said to investors in May that it remained “positive about the opportunity” the world’s fifth most-populous country offers, and that it invested in the market with a long-term commitment.
In recent weeks, PepsiCo. reintroduced a brand called Teem soda, traditionally lemon-lime flavored, in Pakistani market, a spokesperson confirmed. The product is now available in a cola flavor with “Made in Pakistan” printed prominently on the label.




A view of a passenger bus with an advertisement of TEEM soft drink moves along a road in Karachi, Pakistan on September 1, 2024. (REUTERS)

The companies are also still injecting the Coke and Pepsi brands into the fabric of local communities by sponsoring charities, musicians and cricket teams.
Those moves are key to Coke and Pepsi keeping a toehold in the countries long-term even as they face setbacks now, Georgetown’s Musgrave said.
“Anything you can do to make yourself an ally or presence, a part of a community,” helps, he said.


Azerbaijan signs $2 billion investment agreements with Pakistan on sidelines of ECO summit

Updated 04 July 2025
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Azerbaijan signs $2 billion investment agreements with Pakistan on sidelines of ECO summit

  • Development came after sustained engagement between Pakistani and Azerbaijani officials recently
  • PM Shehbaz Sharif also held separate meetings with the presidents of Turkiye, Iran and Uzbekistan

ISLAMABAD: Azerbaijan signed investment agreements worth $2 billion with Pakistan on Friday to boost economic cooperation, said an official statement released in Islamabad, in a major development during Prime Minister Shehbaz Sharif’s visit to the Central Asian state for the Economic Cooperation Organization (ECO) summit.

The two-day summit, hosted in Khankendi, Azerbaijan, focused on a sustainable and climate-resilient future for the region.

In his address, Sharif warned that climate change posed an existential threat to ECO member states, highlighting the impact of melting glaciers, floods, desertification and declining crop yields. He also emphasized more trade, tourism and regional integration to enhance economic prosperity.

“In the presence of Prime Minister Muhammad Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar and Azerbaijan’s Minister of Economy Mikayil Jabbarov signed agreements for $2 billion of investment in Pakistan’s economic sector from Azerbaijan,” the PM Office announced in a statement.

The agreements were signed following a bilateral meeting between Sharif and Azerbaijani President Ilham Aliyev, with officials hoping for a more detailed agreement during Aliyev’s upcoming visit to Pakistan.

“The agreement has elevated investment and trade relations between the two countries to a historic level and will serve as a guarantee for further strengthening their brotherly ties and commercial partnership,” the official Pakistani statement added.

It also described the development as a result of sustained engagement between Pakistani ministries and diplomats and their Azerbaijani counterparts over recent months.

SIDELINE DIPLOMACY

On the sidelines of the summit, Sharif held separate meetings with the presidents of Turkiye, Iran and Uzbekistan, reaffirming Pakistan’s commitment to regional cooperation, peace and connectivity.

In his meeting with Turkish President Recep Tayyip Erdoğan, both leaders reviewed the full spectrum of bilateral relations and vowed to accelerate progress in critical areas.

“The two leaders reiterated their resolve to bring about meaningful progress in relations... [emphasizing] the importance of deepening cooperation in trade, defense, energy, connectivity and investment,” said a separate handout by the PM Office.

To advance this agenda, both sides agreed to exchange high-level delegations to finalize understandings reached between the sides.

In another key engagement, the Pakistani prime minister met Iranian President Dr. Masoud Pezeshkian, with both sides reviewing the implementation of previous agreements to strengthen bilateral ties.

Sharif praised Iran’s leadership during the recent conflict with Israel and welcomed Tehran’s decision to agree to a ceasefire.

“The Prime Minister reaffirmed Pakistan’s unwavering solidarity with the people and Government of Iran and Pakistan’s strong commitment to continue working closely with Iran for peace in the region through dialogue and diplomacy,” the statement said.

In his meeting with Uzbek President Shavkat Mirziyoyev, Sharif focused on regional integration, energy cooperation, and the Trans-Afghan Railway Project, which is seen as vital for unlocking trade corridors between Central and South Asia.

“The two leaders agreed on visits of their senior ministers to Tashkent and Islamabad to finalize necessary agreements,” the PMO said, adding that both sides viewed their cultural and historical ties as a strong foundation for broader collaboration.


Escaped lion attacks woman and children in Pakistan street

Updated 04 July 2025
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Escaped lion attacks woman and children in Pakistan street

  • CCTV footage shows the lion jumping the barrier around its home and pursuing the family
  • It knocks the woman to the ground and claws the arms and faces of her two children

LAHORE: An escaped pet lion chased a woman and two children down a busy street in Pakistan’s Lahore, police said Friday, with dramatic footage showing the big cat leaping a wall before pouncing on them.

CCTV footage released by the police showed the lion jumping the barrier around its home and pursuing a woman carrying her shopping on Thursday night.

The lion jumped on her back, knocking her to the ground, the footage showed.

A police report quoted the father as saying the lion then turned to his five-year-old and seven-year-old children, and clawed their arms and faces.

All three were taken to hospital but were not in a critical condition.

The owners who ran out of the house were “amused to see their lion attack” the passersby, the father added in the report.

Police said Friday they had arrested three men.

“The suspects fled from the spot, taking the lion with them. They were arrested within 12 hours of the incident,” the office of the Deputy Inspector General Operations in Lahore told AFP.

The lion, an 11-month-old male, has been confiscated by police and sent to a wildlife park.

Officials at the facility said that the animal appears to be in good health.

Keeping exotic animals, especially big cats, as pets has long been seen as a sign of privilege and power in Punjab, the most populous province of the country.

In December 2024, an adult lion escaped from its enclosure in another neighborhood of Lahore, terrorizing residents before being shot dead by a security guard.

The incident prompted the provincial government to pass new laws regulating the sale, purchase, breeding and ownership of big cats.

The law now requires owners to obtain licenses for the animals which are barred from being kept in residential areas.

Breeders have to pay a hefty fee for registration, while farms have to be a minimum of 10 acres in size.


PM Sharif discusses trade, investment and regional ties with ECO leaders on summit sidelines

Updated 04 July 2025
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PM Sharif discusses trade, investment and regional ties with ECO leaders on summit sidelines

  • The Pakistani prime minister meets the presidents of Türkiye, Iran, Azerbaijan and Uzbekistan
  • Sharif reaffirms his administration’s resolve to further strengthen relations with these countries

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday held a series of meetings with the presidents of Türkiye, Iran, Azerbaijan and Uzbekistan on the sidelines of the 17th Economic Cooperation Organization (ECO) summit in Khankendi, Azerbaijan, reaffirming Pakistan’s commitment to regional peace, connectivity and enhanced bilateral trade and investment.

The two-day summit, held from July 3-4, focused on promoting economic cooperation, sustainable development and regional integration among ECO member states.

Sharif led Pakistan’s delegation, using the opportunity to deepen bilateral and multilateral ties with key regional partners.

In his meeting with Turkish President Recep Tayyip Erdoğan, the two leaders reviewed the full spectrum of bilateral relations and vowed to accelerate progress in critical areas.

“The two leaders reiterated their resolve to bring about meaningful progress in relations... [emphasizing] the importance of deepening cooperation in trade, defense, energy, connectivity and investment,” a statement from the Prime Minister’s Office (PMO) said.

To advance this agenda, both sides agreed to exchange high-level delegations to finalize understandings reached between the sides.

Sharif reaffirmed Pakistan’s “unwavering commitment” to working closely with Türkiye to promote peace, stability and sustainable development in the region.

In another key engagement, the Pakistani prime minister met Iranian President Dr. Masoud Pezeshkian, with both leaders reviewing the implementation of previous agreements to strengthen bilateral ties.

Sharif praised Iran’s leadership during the recent conflict with Israel and welcomed Tehran’s decision to agree to a ceasefire.

“The Prime Minister reaffirmed Pakistan’s unwavering solidarity with the people and Government of Iran and Pakistan’s strong commitment to continue working closely with Iran for peace in the region through dialogue and diplomacy,” said another PMO statement.

In turn, President Pezeshkian thanked Pakistan for its diplomatic support during the crisis and acknowledged its role in efforts to de-escalate tensions.

The prime minister also held talks with Azerbaijan’s President Ilham Aliyev, in what was their third bilateral meeting this year. The two leaders agreed to further strengthen their economic partnership, especially by accelerating Azerbaijan’s investments in Pakistan.

“The two leaders agreed to enhance their cooperation in the fields of trade and investment while expressing satisfaction over the progress made regarding the investment prospects,” the PMO said.

Sharif invited President Aliyev to visit Pakistan, noting that recent exchanges had significantly strengthened bilateral ties.

The Azerbaijan leader had previously announced a $2 billion investment package for Pakistan during a visit to Islamabad in 2024, and the two countries have also deepened defense cooperation, including Islamabad’s sale of JF-17 fighter jets to Baku.

In his meeting with Uzbek President Shavkat Mirziyoyev, Sharif focused on regional integration, energy cooperation and the Trans-Afghan Railway Project, which is seen as vital for unlocking trade corridors between Central and South Asia.

“The two leaders agreed on visits of their senior ministers to Tashkent and Islamabad to finalize necessary agreements,” the PMO said, adding that the two sides viewed their cultural and historical ties as a strong foundation for broader collaboration.


Karachi building collapse kills 10, exposing city’s crisis of unsafe housing

Updated 04 July 2025
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Karachi building collapse kills 10, exposing city’s crisis of unsafe housing

  • The five-story building in Lyari had been declared dangerous in 2012, but residents remained
  • Sindh Building Control Authority says over 580 buildings in Karachi are unfit for habitation

KARACHI: A five-story residential building collapsed in Karachi’s densely populated Lyari neighborhood on Friday, killing at least 10 people and trapping many others, in yet another tragedy underscoring the city’s crisis of unsafe, aging structures.

Rescue workers, aided by local residents, scrambled to pull people from the debris of the Fotan Mansion building, recovering both bodies and injured survivors. The collapse took place around 10:30 a.m., jolting the community.

“I suddenly woke up … it felt like there were tremors, like an earthquake,” said Salman Ahmed, who was sleeping in a nearby building at the time of the incident and later rescued two children.

“At the moment the building collapsed, nothing was visible,” he recalled. “There was so much dust and smoke that no one could understand what had happened. “We could hear voices coming from underneath [the rubble].”

It was not immediately clear how many families lived in the building, but residents estimated that around 40 people were inside when it collapsed. Many of the occupants were members of the low-income Hindu minority community.

As of Friday evening, a large rescue operation was still underway, with cranes clearing debris and rescuers racing against time to reach those still trapped beneath the rubble.

Senior Superintendent of Police Arif Aziz confirmed to Arab News “the death toll has reached 10.”

“They handed me a three-month-old baby girl, she was alive,” said Maya Sham, a relative of a family living in the building. “Right now, two of their sons and three daughters-in-law are still trapped. But we can still hear voices from inside.”

The collapse devastated families like that of Megbhai, a member of the Hindu community, which largely resided in the building.

Karachi Mayor Murtaza Wahab confirmed that six people had died and eight were rescued alive. He said the building had long been on the city’s “danger list.”

“This building was declared dangerous, and a couple of notices were issued to the occupants to vacate because of its structure,” Wahab told Arab News at the site. “But unfortunately, people chose to risk their lives, and they did not vacate.”

Pakistan’s largest city — home to over 20 million people — faces a chronic housing shortage. Many low-income residents live in dilapidated buildings that have escaped regular maintenance. Authorities have declared nearly 588 buildings dangerous in Karachi, most in the congested Old City area.

According to the Sindh Building Control Authority (SBCA), Fotan Mansion had been declared unsafe as far back as 2012.

“This building was declared dangerous by the SBCA in 2012 and had been served multiple notices over the years,” SBCA spokesperson Shakeel Dogar told Arab News. “Before the recent rains, public announcements were also made in the area, but unfortunately, no one was willing to vacate,” he said, adding that it was the responsibility of the district administration to enforce the SBCA’s evacuation directives.

Mayor Wahab said rescue efforts remained the top priority, with accountability and investigation to follow.

“Our administration, our machinery is here on the ground,” he said. “Once we’re done with the rescue aspect, we will focus on who was responsible for this negligence or omission.”

RECURRING TRAGEDY

Friday’s incident is the latest in a string of deadly building collapses in Karachi.

In February 2020, a five-story building collapsed in Rizvia Society, killing at least 27 people. The following month, another residential structure came down in Gulbahar, claiming 16 lives.

In June 2021, a three-story building in Malir collapsed, killing four. And just last year, in August, a building collapse in Qur’angi led to at least three deaths.

Most of these structures had either been declared unsafe or were built without proper approval.

Experts say that despite repeated disasters, there has been little progress in enforcing building codes or relocating residents from hazardous structures.

“The incident of the building collapse in Lyari is deeply tragic,” said Muhammad Hassan Bakhshi, chairman of the Association of Builders and Developers of Pakistan (ABAD). “It is alarming that despite having a list of dangerous buildings, the SBCA did not take action to get them evacuated.”

He urged the Sindh government to reassess buildings citywide and equip rescue teams with modern tools and technology.

With hundreds of buildings still listed as unsafe, authorities now face mounting pressure to prevent future disasters.

“The way out is that we must follow what the law says,” said Mayor Wahab when asked if anyone would be held accountable. “If citizens don’t listen to us, the political leadership and the administration have to play their part to convince those people.”

“Nobody wants to leave their house... but we must learn from our mistakes and ensure no such untoward incident takes place in the future,” he said.


China helped Pakistan with ‘live inputs’ in conflict with India, Indian Army deputy chief says

Updated 04 July 2025
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China helped Pakistan with ‘live inputs’ in conflict with India, Indian Army deputy chief says

  • India earlier noted no visible Chinese support for Pakistan during the four-day ​standoff
  • Pakistani officials have also denied claims of receiving active assistance from Beijing

NEW DELHI: China gave Islamabad “live inputs” on key Indian positions during Pakistan’s deadly conflict with its neighbor in May, the deputy chief of India’s army said on Friday, calling for urgent upgrades to the country’s air defense systems.

The nuclear-armed rivals used missiles, drones and artillery fire during the four-day fighting — their worst in decades — triggered by an April attack on Hindu tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad, before agreeing to a ceasefire.

Pakistan has denied involvement in the April attack.

India fought two adversaries during the conflict, with Pakistan being the “front face” while China provided “all possible support,” Lt. Gen. Rahul Singh said at a defense industry event in New Delhi.

“When the DGMO (director general of military operations) level talks were going on, Pakistan ... said that we know that your such and such important vector is primed and it is ready for action ... he was getting live inputs from China,” he said.

Singh did not elaborate on how India knew about the live inputs from China.

The Chinese foreign and defense ministries, and Pakistan army’s public relations wing did not immediately respond to Reuters requests for comment.

India’s relationship with China was strained after a 2020 border clash that sparked a four-year military standoff, but tensions began to ease after the countries reached a pact to step back in October.

India had earlier said that although Pakistan is closely allied with China, there was no sign of any actual help from Beijing during the conflict.

Regarding the possibility of China providing satellite imagery or other real-time intelligence, India’s chief of defense staff had said such imagery was commercially available and could have been procured from China or elsewhere.

Pakistani officials have previously dismissed allegations of receiving active support from China in the conflict, but have not commented specifically on whether Beijing gave any satellite and radar help during the fighting.

Beijing, which welcomed the ceasefire in May, has helped Pakistan’s struggling economy with investments and financial support since 2013.

The Chinese foreign minister also vowed support to Pakistan in safeguarding its national sovereignty and territorial integrity when he met his Pakistani counterpart days after the ceasefire.

Singh said that Turkiye also provided key support to Pakistan during the fighting, equipping it with Bayraktar and “numerous other” drones, and “trained individuals.”

Ankara has strong ties with Islamabad, and had expressed solidarity with it during the clash, prompting Indians to boycott everything from Turkish coffee to holidays in the country.

Turkiye’s defense ministry did not immediately respond to a Reuters request for comment.