Coca-Cola Icecek sees market share decline in Pakistan, Turkey amid boycott calls

Coca-Cola Icecek AS (CCI) has experienced a decline in market share in two of its key markets, Pakistan and Turkey, following calls for boycotts of Western products perceived to have ties to Israel, Bloomberg reported.

The company’s share in the Turkish market fell by five percentage points, down to 54%, while in Pakistan’s sparkling beverage sector, CCI’s share dropped by four percentage points. Additionally, declines were noted in markets such as Kyrgyzstan, Jordan, and Uzbekistan. However, the report suggests that Coca-Cola’s dominant market position may protect the brand from any lasting fallout from the ongoing conflict in Gaza.

CCI, which is a subsidiary of the Turkish multinational Anadolu Group a while back, operates as a major beverage producer in several countries including Turkey, Pakistan, Kazakhstan, and others across Central Asia and the Middle East.

The company manufactures, distributes, and sells sparkling and still beverages of The Coca-Cola Company and Monster Energy, as well as producing fruit juice concentrates. It acquired over 99% of Coca Cola’s Pakistan business in 2023.

The corporate structure includes Anadolu Group, which holds a significant stake in CCI. This acquisition allowed CCI to strengthen its presence in the region, becoming a key player in the beverage industry.

Despite the boycott’s impact on the company’s market share, Hasnain Malik, Head of Equity Strategy Research at Tellimer Technologies, pointed out that the decline provides an opportunity for smaller, locally-branded competitors, unless there is a shift in public perception.

The ongoing macroeconomic pressures, coupled with the Middle East conflict, have also weighed on CCI’s performance. In a recent analyst briefing, CCI’s CEO, Karim Yahi, acknowledged that the operating environment remains fragile.

CCI’s second-quarter net income dropped to 5.1 billion liras, a 30% decrease compared to the same period last year.

However, despite the decline, CCI remains a dominant force in Central Asia and neighboring regions, with growing volumes. Experts suggest that the company is likely to withstand the current uncertainty, as most consumers who wanted to boycott Western brands have already done so, and may return once the conflict subsides.

Smaller, local competitors such as Cola Next in Pakistan and Mojo by Akij Food & Beverage in Bangladesh have been able to capture some market share, but Coca-Cola’s stronghold in the region continues to make it a resilient player in the long run.