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From apartheid to Gaza, consumer boycotts have hit major companies over the years

investing.com 04/09/2024 - 11:38 AM

LONDON (Reuters) –

Global companies including Anheuser-Busch InBev, Coca-Cola, and Target have faced sales drops and reputational damage from consumer boycotts over the years.

Consumer boycotts date back to at least an 18th-century anti-slavery sugar protest in Britain, but in recent times, social media has enabled activists to target companies viewed as irresponsible.

Examples of Consumer Boycotts

Israel’s War in Gaza

  • Israel and Hamas have been in conflict since October 7, 2023, resulting in significant casualties on both sides.
  • Following the attacks, consumers in Muslim-majority countries have boycotted products from companies seen as supportive of Israel.
  • Companies like Unilever and Nestle reported lower sales in regions like Indonesia due to these boycotts.
  • McDonald’s noted a meaningful business impact from the crisis in early 2023, affecting operations in some Middle Eastern markets.
  • Starbucks experienced poor first-quarter results due to the conflict. Alshaya Group, which operates Starbucks in the region, planned layoffs due to declining sales.
  • Unilever saw reduced sales growth in Southeast Asia amid consumer boycotts in response to the geopolitical situation.

Apartheid

  • In the 1980s, U.S. and British consumers boycotted products from South Africa during its apartheid era, impacting various goods.

Discouraging Breastfeeding

  • In the mid-1970s, Nestle faced boycotts for allegedly discouraging breastfeeding, leading to an international marketing code by the WHO.

Cruelty to Sheep

  • PETA led a boycott against Benetton in 2004-2005 over alleged animal cruelty in wool production, though sales impact remains unclear.

Transgender and LGBTQ+ Marketing

  • Anheuser-Busch’s Bud Light saw a significant sales decrease after a promotion featuring a transgender influencer.
  • Target faced backlash and confrontations after launching an LGBTQ-themed collection, resulting in the removal of products shortly after debuting.

(This story has been refiled to remove extraneous letter in paragraph 1)




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