- Major wealth funds, including the world’s largest, have removed Israel-linked firms from portfolios

ISTANBUL

A global wave of boycotts has spread from the Middle East and Türkiye to Europe, Asia and beyond, targeting multinational brands accused of siding with Israel during its war on Gaza.

From coffee chains to consumer goods giants, corporations once seen as untouchable are now grappling with falling sales and reputational damage. Supporters view the boycott movement as grassroots resistance and a moral protest against companies perceived as complicit in Israel’s actions against Palestinians.

A UN independent international commission of inquiry concluded last month that Israel is committing genocide in Gaza, where it has killed more than 67,000 Palestinians, most of them women and children, and wounded nearly 170,000 over the past two years. Israel’s siege and blockade on all essentials has also triggered a famine that has claimed the lives of more than 450 Palestinians, including over 150 children.

Companies with alleged ties to Israel – including Coca-Cola, PepsiCo, McDonald’s, Starbucks and Nike – have reported declining revenues, especially in Muslim-majority countries.

Here are some of the firms most affected:

Restaurant chains

US-based food and beverage giants such as McDonald’s, Burger King, Starbucks, KFC and Pizza Hut have been among the most visible boycott targets, as protesters highlight franchise donations, public statements or perceived political alignment with Israel.

McDonald’s global sales decreased by 0.1% in 2024 on a yearly basis and dropped 1% in the first quarter of 2025 – the first such decline in about four years.

The firm has stated that Israel’s war on Gaza had “meaningfully impacted” performance in some overseas markets.

Domino’s Pizza Enterprises, the Australian franchiser, reported its first annual loss in decades, after restaurant closures across Asia following boycott campaigns.

The company posted a sharp loss of 3.7 million Australian dollars ($2.4 million) in the year ending June 2025, compared with a profit of AU$96 million ($62.5 million) the year before.

Starbucks, which has faced repeated accusations from activists of supporting Israel, also posted three consecutive quarters of declining sales.

In the third quarter of 2025, revenue fell 2% and the company announced plans to shut dozens of outlets and cut hundreds of staff. It said the overall count of company-operated stores in North America will decline by about 1% in fiscal year 2025.

For the full fiscal year 2024, Starbucks reported a 2% decline in global sales. In Malaysia, the local operator Berjaya Food Berhad said Starbucks sales plunged 36% year-on-year in the financial year ending June due, in part, to boycotts and protests.

Americana Group, which operates US food brands such as KFC, Pizza Hut and Krispy Kreme across the Middle East, reported its net profit dropped 38.8% in 2024 to $158.7 million, with revenues down 9% to $2.19 billion from $2.41 billion in 2023.

The firm attributed the declines to the regional geopolitical situation and weaker consumer demand in some markets, along with unfavorable foreign exchange movements.

Multinational corporations & beverage giants

Soft drink brands have also become symbolic boycott targets, with activists pointing to their presence in Israel and alleged support for the government.

Coca-Cola’s global sales declined 1% in the second quarter of 2025, with larger declines in some regions, such as 5% in Türkiye. Its share in Türkiye’s sparkling beverage market shrank from 59% to 54%. In Asia-Pacific, sales volumes fell 3%, while India saw a 5% drop.

PepsiCo also reported falling sales, with revenues down 0.3% in the first half of 2025.

Consumer goods giant Unilever, which drew criticism after transferring Ben & Jerry’s distribution rights in Israel to a local firm, saw turnover shrink 3.2% in the second quarter of 2025 after a 0.9% fall in the first.

Nestle, which owns a controlling stake in Osem, an Israeli food manufacturer that operates in occupied Palestine, reported a 1.8% sales decline and a 10.3% drop in net profit in the first half of 2025.

In 2024, Nestle’s sales were down 1.8% and net profit declined by 2.9%.

Retail

Sportswear companies have also been targeted by boycotts, both for their global brand visibility and for supplying equipment to Israel.

Puma’s sales decreased by 2% in the second quarter of 2025, with a 3.1% fall in its Europe-Middle East-Africa region.

The global Boycott Puma campaign began after Puma became the primary sponsor of the Israel Football Association (IFA) in 2018, although it announced it would end its sponsorship by the end of 2024.

Nike reported a sharper 12% drop in second-quarter sales to $11.1 billion, with net income down 86% to $211 million. Revenues in Europe, the Middle East and Africa fell 10%, while Nike Direct sales plunged 20%.

For the full fiscal year 2025, Nike’s net income totaled $3.2 billion, a 44% decrease from $5.7 billion in 2024.

The company said losses were also linked to restructuring costs and tariffs, but boycotts also appear to have contributed to the decline, particularly in Muslim-majority countries.

At the start of 2025, amid Israel’s ongoing genocide, Zara opened its largest-ever store in Israel near Tel Aviv, deepening economic ties with the nation and fueling calls to boycott.

Its owner, Spanish multinational clothing company Inditex, reported a 2% sales decline in its Asia and Rest of World markets, which now account for 16% of total sales, down from 16.6% a year earlier. Sales in the Americas also fell by 3.8%.

Expulsion from world’s biggest funds

Apart from losses fueled by individual consumers, investors have also targeted firms over alleged involvement in Israel’s human rights violations

In August, Norges Bank Investment Management, which manages Norway’s $2 trillion sovereign wealth fund, announced it had removed five Israeli banks and US-based Caterpillar from its portfolio.

The decision was made due to “an unacceptable risk that the companies contribute to serious violations of the rights of individuals in situations of war and conflict,” the world’s largest sovereign wealth fund said in a statement.

It previously divested from 17 Israeli companies with a total portfolio value of $143.3 million.

Earlier this week, ABP, the Netherlands’ largest civic pension fund, sold off its entire stake in Caterpillar on ethical grounds due to the American equipment manufacturer’s ties to the Israeli army.

ABP, Europe’s largest and the world’s fifth-largest pension fund, previously held around €387 million ($455 million) in Caterpillar shares.