Starbucks loses $11bn in value from pro-Palestine action
Western companies across the world have faced a harsh Q4 due to widespread boycotts in support of the Gaza Strip
Seatle-based Starbucks Corp has lost over $11 billion in value this last quarter due to Palestinian solidarity boycotts and employee strikes since the beginning of the war in Gaza on 7 October.
The coffee giant tried to bounce back on losses with their holiday season “Red Cup Day” gimmick that would allow consumers to receive a free reusable holiday cup with every purchase.
Since the announcement of Starbucks’ scheme in mid-November, the company has seen its market share crash by 8.96 percent, accounting for $11 billion in losses, the lowest it has experienced since 1992.
The primary factor for the losses of other western corporations, like McDonald's and KFC, is due to an international boycott action launched against Israel-supporting firms in solidarity with the Palestinian people.
The financial hit by Starbucks jumped borders as its franchises in Egypt have turned to downsizing their workforce due to the boycott’s effects.
Starbucks turned to sue their union, Starbucks Workers United, in October after objecting to the latter’s social media post in solidarity with Palestine, citing intellectual property theft and harassment of baristas at Starbucks cafe locations.
“Workers United posted a statement with an image of a bulldozer tearing down part of the Israel and Gaza border, reflecting their support for violence perpetrated by Hamas,” the company note obtained by The Intercept read. “Starbucks unequivocally condemns acts of terrorism, hate, and violence committed by Hamas, and we strongly disagree with the views expressed by Workers United.”
The boycotting impact in West Asia, where pro-Palestine sentiment has been historically strong, has multiple western brands feeling the heat from Morrocco, Kuwait, Jordan, and others.
"The scale of the aggression against the Gaza Strip is unprecedented. Therefore, the reaction, whether on the Arab street or even internationally, is unprecedented," said Hossam Mahmoud, a member of the Boycott, Divestment, and Sanctions movement (BDS) in Egypt.