Boycotting works: Starbucks loses $11bln in market value
4 Min Read
Starbucks Corp's recent weeks have been fraught with turmoil.
-
A coalition of unions and supporters join Starbucks workers at a rally outside a midtown Manhattan Starbucks coffee store, Thursday, Nov. 16, 2023, in New York. (AP)
As the end of the year approaches, it was reported that Starbucks has lost almost $11 billion in market value, due to intense boycotts and employee strikes in support of Palestine, in addition to a lukewarm holiday promotion.
To counter the losses Starbucks surely predicted, and as the holidays approached, the corporation announced its Red Cup Day; a marketing strategy that gives consumers the chance to receive a free reusable holiday cup with every purchase. However, since the announcement of the promotion in mid-November, Starbucks saw a decline of 8.96 percent in its shares, which equals $10.98 billion in losses, the lowest it has ever experienced since 1992.
This is because of the recent global call to boycott brands and franchises that directly or indirectly benefit "Israel" economically. The Starbucks employee union was transparent in its support for Palestine, as "Israel" launched a genocide in Gaza in October, and took the opportunity to demand better work conditions, including scheduling and the freedom to negotiate contracts. Since then, employee strikes have been consistent.
As a result, the brand found that its reputation is at stake. Despite the loss in value, both economic and social, Starbucks CEO Laxman Narasimhan was positive Starbucks could turn its image back around and make a comeback from the "macroeconomic challenges" it has been facing.
However, the statistics indicate otherwise, as the franchise's efforts were inconsistent with the results they had brought the years before. For example, last year, Red Cup Day resulted in an 81 percent increase in consumption compared to only a 31.7 percent increase this year.
Read more: IHRC launches 'Boycott Genocide Supporters' campaign
Starbucks files lawsuit against the employee union over support for Palestine
In October, Starbucks filed a lawsuit against their employee union over a post the latter shared on X in solidarity with Palestine.
Two days after Operation Al-Aqsa Flood, and following the Israeli war on Gaza, Starbucks Workers United posted “Solidarity with #Palestine!” on X, formerly known as Twitter. Workers United said in its lawsuit that workers put up the tweet without the authorization of union leaders. The post was up for about 40 minutes before it was deleted.
Starbucks filed a federal lawsuit in Iowa against #WorkersUnited, alleging that the pro-Palestinian social media post from a union account upset numerous customers and harmed the company's image.
Starbucks is suing for trademark infringement, demanding that Workers United stop using the name “Starbucks Workers United” for the group that is organizing the coffee company’s workers. Starbucks also wants the group to stop using a circular green logo that resembles Starbucks’ logo.
Global boycott of 'Israel'
Boycott efforts have been consistent around the globe.
In Kuwait, giant billboards displayed blood-stained children, asking, "Did you kill a Palestinian today?" taking a jab at those who still benefit "Israel"-linked products.
In a sweeping wave of protest, Egypt, Jordan, and Turkey also witnessed a significant surge in a boycott targeting multinationals that have either pro-Israeli stances or financial ties with "Israel", such as McDonald’s, Starbucks, and KFC, prompting a widespread consumer movement against them.
The escalation of the genocide has further fueled the momentum of the boycott. As global pressure mounts on "Israel" for its brutal attacks on Gaza, the movement is gaining traction in other nations, including Kuwait and Morocco.
Indonesian-based media outlet Republik reported in November that Indonesian advocates are calling for a boycott of Israeli-linked products due to the ongoing genocide in Gaza.
The call for a boycott was initially launched by human rights groups in both Indonesia and Malaysia and gradually grew to garner support from various political parties, the outlet said.
The list reportedly includes companies such as Coca-Cola, Starbucks, McDonalds, KFC, Nestle and IBM.
"I don't think that me boycotting these brands would affect them."
— Al Mayadeen English (@MayadeenEnglish) October 30, 2023
Think again.#PalestineGenocide #GazaUnderAttack pic.twitter.com/rGkj8vVwKt
Read more: Sayyed Khamenei urges Muslim states to boycott, sanction 'Israel'
