#BoycottIsraeliItems has been trending on social media since the start of the Israel-Hamas war last year. A recent post is going viral, accusing Pepsi and Lays of being Israeli goods and urging people to boycott them in solidarity with Palestine. A man can be seen removing Lays chips from the package in the footage. The chip changed to meat as soon as he put it in his mouth. He is then observed sipping from a Pepsi can. The beverage became blood. People were urged to boycott these two Israeli products by the user.
A sparrow and a fire are the subject of a narrative. A small sparrow wanted to assist with the fire that had started. She flew to a pond, dipped one drop of water into her beak, and flew back. She threw the drop onto the fire and flew as close as she could. She then returned for another, starting the process over and over. It did not affect the fire. “Why are you bothering with a single drop of water when you know it will make no difference?” a crow, sitting nearby, observed her efforts. “To satisfy my conscience,” was the sparrow’s response.
The sparrow’s actions are comparable to Pakistan’s boycott movement in support of Palestine. It has absolutely nothing to do with what Israel does in Palestine or anywhere else. Regardless of the little economic impact, the boycott of Israeli goods is driven by people’s conscience.
History of Lays products
In 1932, Lays made its debut on the market. Herman W. Lay, the originator, began selling the chips in Nashville, Tennessee. In 1939, he bought a food manufacturing company, which he renamed to H.W. Lay and Company. Lay and its competitor, the Frito Company, were merged into Frito-Lay in 1961. Since the 1965 merger of the firm and the Pepsi-Cola Company, it has introduced several new commodities such as Doritos, Funyuns, Munchos, and so forth. It was in the 1980s when Lay only started selling its products outside the country. Lay varies in different countries. In Mexico, the product is called Sabritas; in England, it is called Walker; in Egypt, it is called Chipsy; and in Israel.
Strauss-Elite is a local company that is affiliated with PepsiCo, distributing Lay goods in Israel, so far as the Tapuchips brand. Besides showing the strategy of PepsiCo in adapting to the market, this brand adaptation of Lay relates its existence to the Israeli consumer market. However, it is important to draw a line between Lay as a global brand and the political consequences of Israeli investment in PepsiCo. Though Lay’s does not use political comments or engage in political affairs, there are political implications to the business decisions of the parent corporation.
PepsiCo and its business interests in Israel
Although Lay’s is an American brand, PepsiCo is also heavily connected with Israel commercially. It is worth remembering that in 2018, PepsiCo bought SodaStream, an Israeli company that was famous due to its home carbonation machines, paying something around 3.2 billion dollars. PepsiCo revealed it would introduce a capital investment of 92.5 million dollars to the largest manufacturing location of SodaStream in southern Israel to increase its operations so as to accommodate the hosts of diverse workforces of Palestinians and Bedouin Arabs. Moreover, Sabra, a company that produces Middle Eastern types of food products, with some Israeli headquarters, is a company owned by PepsiCo. Such investments and operations have attracted criticism from activists opposed to the Israeli policy in the occupied Palestinian territories, as well as boycotts.
Boycott movement against Israeli products
More than 41,000 civilians have been killed by Israel’s bombardment of Gaza in the past year. Although the Boycott, Divest, Sanctions (BDS) movement has much older origins, it was rekindled by the October 7 attacks a year ago. The BDS movement is just as old as the crimes committed by Israel in Palestine. Brands associated with Israel or the US’s backing of Israel have been boycotted for more than 20 years.
Some American businesses reported a 25–40% decline in sales in the 2000s. The typical suspects, including McDonald’s, Burger King, Coca-Cola, and Pepsi, were among the targets. At the time, a KFC location in Egypt was set on fire by student protesters, while another location in Lebanon was bombed. Local cola producers thrived in a number of nations back then as well. In 2003, Iranian producers producing Zam Zam Cola found it difficult to meet the demand for their sweeter Coca-Cola and Pepsi.
Sales of the local Star Cola skyrocketed in the United Arab Emirates. In Pakistan, the carbonated beverage sector has gained the most traction among domestic substitutes for boycotted products throughout the past 12 months.
Market shares of the cola company
Previously, Coca-Cola and Pepsi held roughly 90% of the restaurant market share. However, local brands currently hold the largest share, possibly over 90%, according to Salman Aleem, secretary general of the All Pakistan Restaurant Association. While acknowledging that supply chain problems still exist, he points out that consumers are requesting local cola brands, which is forcing restaurants all throughout the nation to accommodate their demands. He claims that Quice has grown its market share in addition to Cola Next and Pakola. He says that local brands are expanding their capacity to meet the growing demand.
However, has the proportion of local businesses gone up? Has the parent firm been affected by the boycott? Regarding the growth in market share or capacity investments, local producers have remained silent. Local cola competitors are now at 12 percent of the soft drink market, up from 2.5 percent previously.
Nonetheless, the boycott of Coca-Cola and Pepsi because they are American-made goods is selective. As well as producing carbonated drinks, PepsiCo also possesses brands like Aquafina, Cheetos, Doritos, Kurkure, and Lays, which have never been criticized so much. In the global economy as of 2023, PepsiCo recorded an annual turnover of 91.5 billion US dollars compared to 45.8 billion for Coca-Cola. The size of the carbonated beverage market in 2023 in Pakistan is Rs303 billion. The number of liters consumed by the country in 2023 was 1.4 billion.
This is not to claim that Coca-Cola’s sales in Pakistan are increasing; rather, the decline is moderating. Compared to the first quarter of the year, when sales volume decreased by 23 percent year over year, the second quarter saw a 5 percent reduction. Although sales may be increasing as support for the BDS movement declines, the corporation partially credits this to a better macroeconomic climate.
Controversies and Lay’s business
Lay’s potato chips are among the goods that PepsiCo sells in Israel under local branding. The business does not openly support the Israeli government or its policies and takes a neutral position on political matters.
Purchase of SodaStream: In 2018, PepsiCo paid $3.2 billion to acquire the Israeli business SodaStream. One of the main targets of boycott campaigns was SodaStream’s manufacturing in the West Bank, which is seen as occupied Palestinian territory. PepsiCo increased SodaStream’s production in southern Israel following the acquisition. Activists frequently point to this acquisition as oblique support for Israel’s economy.
Ownership of Sabra: PepsiCo owns half of Sabra, a Middle Eastern food manufacturing company that has ties to Israel.
Conclusion
As a brand, Lay’s does not overtly endorse Israel politically. PepsiCo, the company’s parent, has substantial economic activities in Israel, though, including the purchase and growth of SodaStream’s facility and the ownership of more Israeli-affiliated businesses. Activists against Israel’s actions have called for boycotts as a result of these ties. Consequently, one’s interpretation of corporate responsibility and indirect economic support determines whether Lay’s “supports Israel” or not. As part of a larger plan, consumers who wish to refrain from assisting Israeli economic interests can decide to boycott Lay’s products. Others could consider Lay’s to be an impartial company with no clear political ties.
