Coca-Cola Icecek AS, based in Istanbul, reported a drop in sales in Turkey and Pakistan due to regional calls to boycott brands linked to Israel. These boycotts were influenced by the ongoing Middle East conflict and economic challenges in both countries.
During the September quarter, Coca-Cola Icecek’s sales volume fell by 12.2% in Turkey and 22.9% in Pakistan compared to the same period last year. The announcement, made on Tuesday, caused the company’s shares to drop by 7.1% to 45.12 liras in Istanbul, the steepest decline since May 2023. Shares fell further by 4.8% on Wednesday.
This trend is not unique to Coca-Cola Icecek. American fast-food brands like McDonald’s and KFC are also facing reduced demand across Asia, the Middle East, and parts of Europe, as many Muslims in these regions adjust their consumption habits due to perceived links between these brands and Israel.
Coca-Cola Icecek reported a 61% drop in net income for the quarter, falling to 5.17 billion liras ($151 million). This result fell short of analysts’ expectations of 5.72 billion liras. The company also lowered its forecast for net sales revenue growth.
“This quarter presented a mix of challenges in some markets and positive results in others,” said Onur Alturk, CEO of Anadolu Efes. “Although our overall performance was slightly below expectations, we remain focused on our long-term goals.”
The company is now working to navigate these market pressures and recover from the recent setbacks.
