A year of boycott: The high cost of supporting Israel

Summary

The video highlights the impact of global boycotts on major corporations like Starbucks, McDonald's, Burger King, KFC, and Coca-Cola due to their perceived support of Israel during the Gaza conflict. Boycotts driven by the BDS movement have led to significant financial losses for these companies, with declines in sales and closures of branches worldwide. The campaign also targets tech giants like Intel for their involvement in Israeli military technology, affecting investments and startups in Israel. This reflects growing consumer awareness and collective action against companies linked to the Israeli conflict.

Takeaways

• 🌟 Starbucks CEO Laxman Nariman was ousted after just 17 months due to a global boycott campaign affecting sales.
• 📉 Starbucks experienced a 2% sales drop in North America and a 7% drop globally, with international profits falling by 23%.
• 🍔 McDonald's faced its first global sales decline since 2020, with revenues falling 12% in Q2 2024, leading to plans to buy out all its restaurants in Israel.
• 👑 Burger King is changing its name to 'Borg' in Turkey to embrace local culture and build a closer relationship with Turkish consumers amidst boycotts.
• 🐔 KFC is closing over 100 outlets in Malaysia and its first store in Algeria was shut down due to nationwide pro-Palestinian protests.
• 🥤 Coca-Cola is experiencing a decline in sales across Europe and the Middle East, with a 7% drop in sales in the first half of the year and plans to close five plants in Germany by 2025.
• 📊 A survey by the BDS movement found that one in three people boycotted brands due to Israel's actions in Gaza, highlighting the power of collective consumer action.
• 🎯 The BDS movement advocates for targeted boycotts of key suppliers like Chevron, Intel, and others to affect the Israeli economy and its military capabilities.
• 🏭 Intel's plan to invest $25 billion in a chip factory in Israel was halted due to the global boycott, showing the impact on strategic industries.
• 📉 Over 45,000 Israeli companies have closed, and more than 80% of startups have suffered damage due to the boycott, with investment in Israeli companies decreasing by 32% in Q1 2024.
• 🏢 Major corporations like Samsung NEX and Too Corporation have severed ties with Israel, and Puma announced it would not renew its contract with the Israel Football Association.

Q & A

Why was Starbucks CEO Laxman Narasimhan ousted after just 17 months?

Laxman Narasimhan was ousted due to falling sales, largely attributed to a global boycott campaign that resulted in a 2% sales decline in North America and a 7% drop worldwide, with total international profits decreasing by 23%.

What has been the impact of the boycott on McDonald's sales?

McDonald's experienced a 12% revenue drop, with global sales declining for the first time since 2020. The boycott is linked to the company's support for Israel, including providing free food to Israel's army.

Why is Burger King changing its name in Turkey?

Burger King is changing its name to 'Borg' in Turkey to embrace local culture and strengthen its relationship with Turkish consumers amid the challenges posed by the boycott.

What actions has KFC taken in response to the boycott?

KFC has closed over 100 outlets in Malaysia and shut down its first store in Algeria following nationwide pro-Palestinian protests, showing the boycott's impact on its business.

How has Coca-Cola been affected by the boycott, particularly in Europe and the Middle East?

Coca-Cola has faced significant declines, shutting down five plants in Germany by 2025 and suffering a 7% sales drop in the Middle East. Sales in Bangladesh fell by 23%, and the Pakistani factory making Coca-Cola and Pepsi cans reported an 11% decrease in sales.

What strategy does the BDS movement recommend for effective boycotts?

The BDS movement recommends targeting key and strategic players, such as Chevron and Intel, whose products and technologies support Israel’s military operations. This targeted approach is seen as more effective in pressuring these corporations.

What was the result of the global boycott campaign against Intel?

The global boycott campaign led Intel to halt construction of a $25 billion chip factory in Israel, which is now at risk of being canceled due to the pressure from the boycott.

How has the Israeli economy been impacted by the boycott campaigns?

Over 45,000 Israeli companies have closed, with more than 80% of startups reporting damage. Over 50% of startups have less than six months of financing, and investments in Israeli companies decreased by 32% in the first quarter of 2024 compared to the same period last year.

Which major international companies have severed ties with Israeli firms due to the boycott?

Korean company Samsung NEX, Japanese firms Itoo Corporation and Nippon Aircraft Supply, as well as German sportswear company Puma, have severed ties with Israeli firms, particularly those connected to military and sports organizations.

What is the broader significance of consumer boycotts according to the script?

The script suggests that global consumer boycotts have become a form of 'consumer justice,' pressuring corporations that support policies related to Israel’s actions in Gaza, with these efforts yielding tangible results in reduced sales and business operations for major companies.