ASIATODAY.ID, JAKARTA – Starbucks Corporation, based in Seattle, has lost more than $11 billion due to the international boycott of companies that support Israel as a form of solidarity with the Palestinian people.
Since November 16 2023, Starbucks shares have continued to decline by 8.96 percent and this is the lowest loss since 1992. Starbucks shares have fallen continuously in 12 stock market sessions. Currently, per share is estimated at $95 from previously around $115.
One of the biggest contributing factors to Starbucks’ losses was a series of boycotts led by their workers’ union, Starbucks Workers United.
This union consists of baristas, who express support for Palestine, which has been under attack by Israel since early October 2023.
Calls to boycott Starbucks had long been made before this boycott, because former Starbucks CEO, Howard Schultz, was a vocal supporter of Israel’s colonization of Palestine.
The financial impact experienced by Starbucks has increased drastically because its franchises in Egypt have cut their workforce due to the impact of the boycott.
Apart from the boycott, the decline in Starbucks shares was also triggered by the failure of their product, Red Cup Day, on the market. This product is a promotion for customers by giving red recycled glasses as a sign that the holiday season has arrived.
Red Cup Day, which is usually festive this year, was dampened by an employee strike, which disrupted service at more than 200 locations in the United States.
In 2022, Red Cup Day will bring an 81 percent increase in sales. Meanwhile this year it only reached 31.7 percent. (AT Network)
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