Money Talks: Global Boycott of Israel

In the name of Allah, the Gracious, the Merciful.

Around the world, consumers are choosing to boycott products and companies due to their association with Israel. This grassroots movement is an attempt to apply pressure to corporations and have a measurable impact on Israel’s economy, and so far, it’s working.

Pictured: Demonstrators advocating for the boycott of all Israeli goods.

Major companies such as McDonald’s, Starbucks, Unilever, and Domino’s are among the long list of targets for the Palestinian-led movement, Boycott, Divestment & Sanctions (BDS). Many of BDS's targets have reported losses, leading to other companies, such as the sporting brand Puma, taking measures to distance themselves from Israel altogether.

But just how much money are these companies losing?

According to recent reports, Starbucks’ market value has dropped by $12 billion, with many attributing the losses to the BDS movement.

Another on the hit list of BDS is Unilever, which reported $26 billion in losses, with their stock plunging 20.7%.

Local boycotts of McDonald’s in Malaysia have led to subsequent lawsuits, with stores demanding $1 million in compensation for lost revenue.

While it can be challenging to accurately measure the direct impact of boycotts, it is evident that consumer voices are influencing these companies' associations and avid support of Israel.

So, are companies changing their stance?

Sporting brand Puma has dropped its sponsorship of Israel’s National Football team in 2024 as they “evaluate all other existing partnerships.” Puma had faced calls for a boycott in previous years and saw mounting pressure to act within the last few months.

McDonald’s Chief Executive Officer, Chris Kempczinski, commented on the reduced sales in the Middle East, claiming the boycott is founded on misinformation. He clarified McDonald’s position, stating:

“Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone.”

This marks a clear departure from their previous actions of supplying the Israel Defence Forces with McDonald’s meals.

The financial hits suffered by corporations like Starbucks and Unilever, in response to the Boycott, Divestment & Sanctions (BDS) movement, demonstrate the significant impact of consumer decisions. Puma and McDonald's recent rectifications of their stance on Israel, highlight just how much change individuals can make.