Starbucks continues to feel weight of global boycott over Gaza war

Starbucks continues to feel the weight of global boycott campaigns over its support of Israel’s war in Gaza which has claimed the lives of over 34,500 Palestinians, the majority of them women and children.

The coffee chain announced a sharp decline in global sales; the worst since the pandemic, which resulted in its share price dropping to a 21-month low. Starbucks reported a 15 per cent drop in net income (to $772 million) compared to this time last year.

Global boycott campaigns have also forced the company to lower its profit forecast for the fiscal year 2024 as the performance of its cafes is expected to remain weak in the near future.

“In a challenging environment, this quarter’s results do not reflect the strength of our brand, our capabilities or the opportunities ahead,” CEO Laxman Narasimhan said in a statement.

The company has been trying to counter what it describes as “ongoing false and misleading information being shared about Starbucks” online.

In October, Starbucks sued Workers United, which has organised workers in at least 370 US Starbucks stores, over a pro-Palestinian message posted on a union social media account.

Starbucks said it was trying to get the union to stop using its name and likeness as the post also drew protests from pro-Israel demonstrators.

Since the start of Israel’s genocidal war on Gaza, Starbucks has seen a continual drop in sales and profits as a result of its actions.

(Source: MEMO)