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

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 

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.


Pakistani delegation comprising civil, military officers arrives in UAE to bolster dialogue, academic ties

Pakistani delegation comprising civil, military officers arrives in UAE to bolster dialogue, academic ties
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Pakistani delegation comprising civil, military officers arrives in UAE to bolster dialogue, academic ties

Pakistani delegation comprising civil, military officers arrives in UAE to bolster dialogue, academic ties
  • Delegation members are representatives of National Defense University, Pakistan’s leading military educational institute
  • Pakistani delegation will meet UAE officials, think tanks and other institutions during visit, says Pakistan embassy in Abu Dhabi

ISLAMABAD: A delegation of senior Pakistani military and civil officers has arrived in the United Arab Emirates (UAE) to enhance bilateral dialogue, academic cooperation and understanding between the two nations, the Pakistan embassy in Abu Dhabi said on Tuesday. 

The delegation are representatives of the National Defense University, Pakistan’s leading military educational institute situated in Islamabad, the embassy said in a statement. It added that the delegation comprises senior military and civil service officers, including those from friendly countries as well. 

“The Embassy of Pakistan in Abu Dhabi hosted a delegation of National Security and War Course (NSWC) of the National Defense University (NDU), Islamabad, during their foreign study visit to the United Arab Emirates (UAE),” the embassy said in its statement.

“The visit aims to enhance bilateral dialogue, academic collaboration, and mutual understanding between Pakistan and the UAE.”

Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi welcomed the delegation, stressing the significance of these exchanges in deepening bilateral cooperation. He stated that the visit also reflects our commitment to strengthening the historic Pakistan-UAE partnership, the embassy said. 

“During their visit, the delegation will have high-level interactions with UAE government officials, think tanks, and other institutions of UAE,” the statement said.

The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE foreign ministry.

It is also home to more than a million Pakistani expatriates. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.

The two nations have stepped up efforts in recent years to strengthen their business and investment ties. In January 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.


Pakistan, Bangladesh resolve to strengthen bilateral ties, maintain high-level contacts

Pakistan, Bangladesh resolve to strengthen bilateral ties, maintain high-level contacts
Updated 06 May 2025
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Pakistan, Bangladesh resolve to strengthen bilateral ties, maintain high-level contacts

Pakistan, Bangladesh resolve to strengthen bilateral ties, maintain high-level contacts
  • Pakistan’s Foreign Minister Ishaq Dar speaks to Bangladesh Foreign Affairs Adviser Touhid Hossain, says state media 
  • Islamabad and Dhaka have attempted to rebuild bitter relations since ouster of Sheikh Hasina’s government last year

ISLAMABAD: Pakistan’s Foreign Minister Ishaq Dar agreed to strengthen bilateral relationship with Bangladesh and maintain high-level contacts with its leadership, state-run media reported on Tuesday, as Islamabad looks to forge closer ties with the Muhammad Yunus-led government. 

Pakistan and Bangladesh, once one nation, split after a brutal 1971 war with Dhaka drawing closer to Islamabad’s arch-rival New Delhi. However, long-time Bangladeshi prime minister Sheikh Hasina was ousted after her government was overthrown in August 2024. She fled via helicopter to India as Dhaka attempts to extradite her. 

Relations between India and Bangladesh’s interim government have been frosty since then, allowing Islamabad and Dhaka to rebuild ties slowly. Dar spoke to Touhid Hossain, Bangladesh’s foreign affairs adviser, over the telephone on Monday, Pakistani state broadcaster said. 

“Pakistan and Bangladesh have reaffirmed their mutual commitment to further strengthen bilateral relations and maintain regular high-level engagements,” Radio Pakistan reported. 

Direct private trade between the countries restarted in November 2024, when a container ship sailed from Pakistan’s Karachi to Bangladesh’s Chittagong. It was the first cargo ship in decades to sail directly between the countries.

Dar discussed Pakistan’s increased regional tensions with India during his conversation with Hossain, in light of New Delhi’s “unfounded” allegations it was involved in an attack last month in Indian-administered Kashmir. 

Gunmen killed 26 tourists in Pahalgam tourist resort on April 22, straining ties between the two nations as India blamed Pakistan for backing the attack. Islamabad denied involvement and has asked New Delhi to share proof to substantiate its claims, something it hasn’t done yet. 

“The Bangladeshi Foreign Affairs Adviser expressed concern over the current situation and emphasized the need for de-escalation and exercising restraint by all parties,” Radio Pakistan said. 

India and Pakistan — carved out of the subcontinent at the chaotic end of British colonial rule in 1947— have fought multiple wars and remain bitter foes. The two countries claim the disputed Himalayan territory of Kashmir in full but govern only parts of it separated by a Line of Control (LoC) de facto border. 


Peshawar Zalmi thrash Multan Sultans by 7 wickets, keep PSL playoff hopes alive

Peshawar Zalmi thrash Multan Sultans by 7 wickets, keep PSL playoff hopes alive
Updated 06 May 2025
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Peshawar Zalmi thrash Multan Sultans by 7 wickets, keep PSL playoff hopes alive

Peshawar Zalmi thrash Multan Sultans by 7 wickets, keep PSL playoff hopes alive
  • Zalmi all-rounder Ahmad Daniyal returns figures of 3/17, Luke Wood and Maaz Sadaqat take two wickets each 
  • Peshawar will next face Karachi Kings on Wednesday and two-time champions Lahore Qalandars on Friday 

ISLAMABAD: Peshawar Zalmi continued their impressive run of form on Monday by beating Multan Sultans by seven wickets at their home ground, effectively keeping their hopes of qualifying for the Pakistan Super League (PSL) playoffs stage alive. 

The Sultans batted first at their home turf but were unable to impress, losing a flurry of wickets as Zalmi bowlers kept on taking breakthroughs at regular intervals. The only signs of resistance came from Shai Hope, who top-scored for the Sultans with 23 runs while middle-order batter Tayyab Tahir made 22. 

Zalmi’s Ahmad Daniyal was the pick of the bowlers, returning figures of 3/17 from four overs while Luke Wood and Maaz Sadaqat picked two wickets each to ensure the Sultans were bowled out for 108 runs in 19.1 overs. 

“In the 25th match of Pakistan Super League, Peshawar Zalmi defeated Multan Sultans by seven wickets in Multan last night,” Radio Pakistan reported. 

Zalmi chased the total in 13 overs with seven wickets to spare. Explosive opening batter Saim Ayub scored 49 runs from 33 balls while Max Bryant remained unbeaten on 38 from 20 balls. 

Zalmi captain Babar Azam scored 8 runs from 13 balls while Mitchell Owen scored only one run from two balls. For the Sultans, Shahid Aziz returned figures of 2/17 from three overs while David Willey finished with 1/9 from his single over. 

The “Yellow Storm” remain at number five on the PSL points table with four wins from a total of eight matches. The top four teams will qualify for the PSL playoffs. 

If Zalmi qualify for the playoffs, Azam’s team will remain the only one to qualify for every playoff since the edition began in 2016. 

Zalmi will next play Karachi Kings on Thursday before taking on former two-time PSL champions Lahore Qalandars on Friday. 


Pakistan army chief, Iranian FM review border management, security challenges

Pakistan army chief, Iranian FM review border management, security challenges
Updated 06 May 2025
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Pakistan army chief, Iranian FM review border management, security challenges

Pakistan army chief, Iranian FM review border management, security challenges
  • Pakistan and Iran have often been at odds over instability along their shared, porous border 
  • Araghchi arrived in Islamabad this week to discuss surging tensions between India and Pakistan

ISLAMABAD: Army Chief General Syed Asim Munir reviewed border management and security challenges with Iran’s Foreign Minister Seyyed Abbas Araghchi this week, the Pakistan military’s media wing said, with the two sides agreeing to enhance bilateral cooperation. 

Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.

Araghchi arrived in Pakistan on Monday to hold talks with Pakistani leadership as Islamabad’s tensions with New Delhi surge. Iran has offered to mediate between the two nuclear-armed nations as the threat of war looms over the South Asian region. 

“The meeting featured constructive discussions on the geo-strategic environment, with particular focus on challenges confronted by both countries in the domain of security,” the Inter-Services Public Relations (ISPR), the military’s media wing, said on Monday. 

“The Pak-Iran border security mechanism was also reviewed as part of efforts to enhance bilateral coordination.”

The statement said both sides agreed to stay engaged for enhanced bilateral cooperation, while jointly working to assist in bringing “positive developments” in issues concerning the region.

“The Iranian FM acknowledged and appreciated Pakistan’s efforts for peace and stability in the region,” the ISPR said. 

Earlier, Araghchi met Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar as the two held delegation-level talks. Dar expressed appreciation for the positive momentum in Pakistan-Iran relations and emphasized the need to expand cooperation in key areas including trade, energy, border security, and regional connectivity, state-run Radio Pakistan reported.


Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues

Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues
Updated 06 May 2025
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Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues

Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues
  • Pakistan’s UN ambassador briefs Security Council during special session in New York on prevailing tensions with India
  • New Delhi accuses Islamabad of backing militant attack in Indian-administered Kashmir last month that killed 26 tourists

ISLAMABAD: Pakistan’s Permanent Representative to the United Nations Asim Iftikhar Ahmad has urged the UN Security Council to de-escalate Islamabad’s tensions with New Delhi, stating that dialogue is the “only way” to resolve issues between the nuclear-armed nations, state-run media reported on Tuesday. 

A special UN Security Council session to discuss surging tensions between Pakistan and India was convened in New York on Monday at Islamabad’s request. The meeting took place as fears of a military confrontation between India and Pakistan loom after ties deteriorated last month following an attack in Indian-administered Kashmir that killed 26 people. 

India has accused Pakistan of backing the Apr. 22 attack which took place in Pahalgam, a tourist spot in Indian-administered Kashmir. Islamabad has denied involvement and asked for evidence which New Delhi has so far not publicly shared. Both countries have since exchanged gunfire in Kashmir, taken diplomatic measures against each other, expelled citizens and ordered the border shut. 

“Pakistan has urged the United Nations Security Council to take steps to de-escalate tensions in South Asia for global and regional peace,” state broadcaster Radio Pakistan reported. 

The state broadcaster said Ahmad told reporters after the session ended that India’s recent steps are a “threat to peace and stability in the region and dialogue is the only way to resolve issues.”

Ahmad informed Security Council members that Pakistan is ready to take part in any independent and neutral investigation into the Pahalgam attack, Radio Pakistan said. He also raised the issue of India suspending the decades-old Indus Waters Treaty in abeyance unilaterally. 

India suspended the 1960 World Bank-mediated treaty a day after the Pahalgam attack, saying the suspension would last until “Pakistan credibly and irrevocably abjures its support for cross-border terrorism.” Pakistan has described the suspension of the treaty as an “act of war” and vowed to respond with full force to any attempts to divert or stop its water flow. 

The flare-up and exchanges of small arms fire between India and Pakistan across their de facto border in Kashmir has alarmed world and regional powers, who have called for restraint and urged the two neighbors to resolve the crisis through dialogue. Pakistan has assured foreign capitals and friendly nations that it would not be the first one to strike, according to officials.

Prime Minister Shehbaz Sharif spoke to UN Secretary-General Antonio Guterres on Monday night, Radio Pakistan reported, to discuss Pakistan’s ongoing tensions with India. Guterres briefed Sharif on his outreach efforts for peace and stability in the region, expressing his commitment to remain engaged with all interlocutors on the issue.
Sharif appreciated the UN secretary-general’s continued engagement and outreach efforts and welcomed his call for de-escalation, the state-run media reported.
Pakistan and India have a history of bitter relations. They have fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.