Coca-Cola Icecek Hit by Boycotts and Slowdown in Turkey, Pakistan
Coca-Cola Icecek AS, the Istanbul-based bottler and distributor of Coca-Cola products, has reported a significant drop in sales in Turkey and Pakistan during the September quarter, Bloomberg reports.
The company attributed the decline to a combination of boycotts linked to perceived ties with Israel and an ongoing economic slowdown in the region.
Sales volume fell by 12.2% in Turkey and 22.9% in Pakistan compared to the same period last year. This decline has led to a sharp drop in the company’s share price, falling 7.1% on Tuesday, the largest single-day drop since May 2023. The shares continued to fall on Wednesday, dropping as much as 4.8%.
The company’s struggles are part of a wider trend impacting US fast-food brands across Asia, the Middle East, and parts of Europe. Calls for boycotts have emerged following the recent conflict in Gaza, targeting companies perceived to have links with Israel. Many Muslims in the region have shifted away from American fast-food options, leading to a significant decrease in demand.
This challenging environment has also contributed to a 61% drop in Coca-Cola Icecek’s net income for the quarter, reaching 5.17 billion liras ($151 million). This figure fell short of analyst estimates, prompting the company to lower its guidance for net sales revenue growth.
Despite the challenges, Coca-Cola Icecek remains optimistic about its long-term strategy. The company saw a 1.3% volume growth in other international markets, fueled by strong performance in Iraq and Azerbaijan, and a recovery in Kazakhstan.
