there was a great article about bds by sousan hammad in counterpunch last month, which begins with a great fanon quote and engages in an important analysis of the psychological complications involved when trying to educate palestinians about bds:
“An underdeveloped people must prove, by its fighting power, its ability to set itself up as a nation, and by the purity of every one of its acts, that it is, even to the smallest detail, the most lucid, the most self-controlled people.”
–Frantz Fanon, “A Dying Colonialism”
There is an echoing sentiment here in Ramallah that Israeli milk is more “tasteful” and “nutritious” than Palestinian milk. The same goes for wine, apples, dates, juice, and just about everything else…except for maybe olives. In fact, Palestinian shopkeepers even stock Israeli-made milk at the front of their store while Palestinian milk sits in a far-to-reach crate collecting dust in the corner.
Palestinians do this for two reasons: one is they truly believe their senses, the other, and possibly more understanding, is because selling Israeli products yield a much higher profit.
A recent study by the Swiss Development Center, an organization that aims to promote Palestinian products, found that Palestinians within the higher socioeconomic strata tend to buy more Israeli goods than those in the lower strata. In French colonial-Martinique, mothers would sing to their children in French instead of their native language because it was more “civilized” to speak the colonizer’s language.
Appropriating the colonialist brand seems to imply prestige – a product, perhaps, of the inferiority complex – but if you push this aside as a psychological epiphenomenon that is a result of colonialism and consider the economic dependency Palestinians are forced to live with, one way to overcome the subjugation of the colonialist-settler (thus racist and discriminatory) policies would be to boycott Israeli products. Besides forcing Palestinians to consume their own products, it would promote and develop a domestic industry and manufactured goods. If it takes a pyramid to list all the nutritional benefits of Palestinian produce, then onward with the label! Whatever it may be, the Palestinians must ascertain that they can have a functioning society without being indebted to Israel.
This is, essentially, what the Boycott, Divestment, Sanctions (BDS) movement is about. Using Apartheid South Africa as a model, a coalition of Palestinian groups felt compelled to combat Israel’s economic power over Palestine, and, in 2005 the BDS movement was created.
Besides placing political pressure on corporations to divest from Israel, BDS focuses strongly on its consumer boycott efforts, which according to the BDS website, is to put “pressure on companies whose exports are linked to some of the most evident aspects of the Israeli occupation and apartheid.”
One of the many campaigns of BDS is to target stores that sell Israeli products and persuade them to stop stocking them. While much of the campaign is based on Israel’s exports to the West, activists here in the West Bank also try to deter Palestinian shopkeepers from selling produce that is grown in Israeli settlements. (Again, these yield more profit for Palestinians.) It is highly unlikely, though, that Palestinians will collectively and instantaneously dump their Israeli products for Palestinian manufactured goods and produce because an activist tells them so. They want to know if there is proof of sustainability.
A BDS Victory
Enter the story of Veolia and the light rail.
In 1902, Theodore Herzl wrote in his book, Altneuland, that the future of Jerusalem would be made of “modern neighborhoods with electric lines, tree-lined boulevards” and that Jerusalem would become “a metropolis of the 20th century”.
Materialized a century later as the Jerusalem light rail project, the father of Zionism’s idea of an electric-lined-boulevard is halfway in construction. When, and if, completed, the light rail will conveniently accommodate Jewish-Israelis, connecting West Jerusalem to Jewish settlements. The light rail travels through Palestinian neighborhoods, but makes no stops and as one Israeli blogger put it “…all the windows have been reinforced to be resistant to stones and Molotov cocktails.”
But officials are now facing a major setback: In June, Ha’aretz reported that Veolia, a French transportation company that was to operate the light rail post-construction, abandoned the project because of the “political pressure” it was facing: a direct implication of the BDS “Derail Veolia and Alstom Campaign”.
Said an exultant Omar Barghouti, a BDS founding member:
“Veolia’s reported intention to withdraw from the illegal JLR project gives the BDS movement an important victory: success in applying concerted, intensive pressure on a company that is complicit in the Israeli occupation and colonization of Palestinian land, enough to compel it to withdraw from an illegal project. This may well usher in a new era of corporate accountability, whereby companies that are profiting from Israel’s illegal colonial and racist regime over the indigenous people of Palestine will start to pay a real price in profits and image for their collusion.”
The pressure from human rights activists and lawyers throughout Europe battered Veolia, costing it multiple contracts – a loss that amounted to more than $7 billion. From Stockholm to Bordeaux, companies dumped Veolia on account of its stake in a project that violates international law. Veolia, along with Alstom – the engineering enterprise behind the light rail – were taken to a French court by Association France-Palestine Solidarité along with attorneys from the PLO legal counsel. AFPS filed the complaint against Alstom and Veolia in 2007, arguing that the 8.3-mile project violates international law since East Jerusalem is not sovereign Israeli territory. “Our main argument is that the light rail project is intended to serve illegal Israeli settlements in East Jerusalem and thus it’s part of illegal settlement infrastructure and by being involved in project, the French companies are violating international law,” says Azem Bishara, an attorney with the Negotiation Support Unit in Ramallah.
When the Arab League organized a boycott of Israel after its colonization of Palestine in 1948, Arab countries refused to deal with Israel by boycotting their products, services and even refusing to allow Israelis into their country. Lebanon and Syria are the only countries that allegedly adhere to the boycott today, as they have yet to sign trade agreements with Israel. The Israeli Chamber of Commerce reported Israel was losing an average of 10 percent in export revenue per year when the boycott was in its prime. This spearheaded the fight by the American Jewish Committee to pressure Congress to pass an anti-boycott legislation. In 1977, then-President Jimmy Carter, who now advocates the window-dressing of Palestinian national independence, signed a law that would impose a fine on American companies that cooperated with the boycott.
It seems safe to assume that this legislative effort by AJC indicated that it, at least, believed the Arab League boycott was having some effect.
Although it was with similar calculations and campaigning that U.S. and European companies pulled out of South Africa over 20 years ago, how do we know companies like Veolia won’t be targeted by anti-boycott Israeli investors? Whether or not Veolia goes through with its withdrawal, the question remains: is it really a victory? And how can an effective boycott promote economic independence so that Palestinian milk will no longer have to be in the dustbin of stores? These are questions the boycott campaign has to confront.
one of the products that is not mentioned in the above article is coca cola, which many palestinians insist is palestinian because the owner of the franchise is palestinian (zahi khoury) and because they bottle it in al bireh, which i’ve written about before. coca cola is one of the most evil companies in the world for so many reasons. but i was delighted to discover a wonderful critique of sonallah ibrahim’s novel the committee. ever since i read his novel zaat i became enamored with his politics and his writing style. i have been dying to read this novel for a while now and finally got around to it this week. (my form of escapism and procrastination all rolled into one delightful novel.) the egyptian narrator of the novel, who is under investigation by an anonymous, foreign, non-Arabic speaking committee described as “consist[ing] entirely of officers, some of whom sometimes wear civilian clothes, or it consists of civilians, some of whom sometimes wear military uniforms,” (111) to whom he reveals the following:
Since its advent, Coca-Cola has been linked with the major trends of the age, sometimes sharing to a large extent in their formation. The American pharmacist Pemberton synthesized it in Atlanta, famous as the capital of Georgia, the birthplace of the American president Carter and of the notorious Ku Klux Klan. This was during 1886, the very year in which the famous Statue of Liberty, that symbol of the New World, was completed.
As for the bottle, it was one product of an American “war of liberation.” Having vanquished the Indians, the United States plunged into the Spanish-American War in Cuba, which ended in 1899, with the proclamation of “independence” for Cuba, Puerto Rico, and the Philippines. An American soldier, who, coincidentally, had the same name as the great American philosopher of the preceding century, Benjamin Franklin, saw a bottle of a carbonated beverage made from banana syrup. On returning home, he obtained bottling rights for a new product. The bottle’s shape varied until it finally stabilized in the universally recognized form of “a girl with an hourglass figure.”
It may have been Coca-Cola that first shattered the traditional image of the ad, previously a mere description of a product. Thus it laid the cornerstone of that towering structure, that leading art of the age, namely, advertising. Certainly, it broke the long-standing illusion of a relationship between thirst and heat through the slogan: “Thirst knows no season.” It was ahead of its time in the use of radio and neon for advertisements. it sponsored television shows, produced films, and backed new international stars and idols such as actors, the Beatles, and the pioneers of rock and roll, the twist, and pop.
Coca-Cola went through two world wars and emerged from them victorious. It sold five billion bottles during the seven years of World War II. Then it slipped into Europe under the wing of the Marshall Plan, which backed the war-weakened European currencies by means of American products and loans.
It then took its place as a leading consumer product along with Ford cars, Parker pens, Ronson lighters, but still kept its finger on the pulse of today’s ever-changing world. With the advent of the great age of installment plans, and neighbor competing with neighbor for the newest model car with the largest trunk, capable of holding enough groceries to fill the largest fridge, Coca-Cola marketed the family-sized bottle, the “Maxi.”
When the United States cooperated in a new “war of liberation” in Korea, Coca-Cola created the tin can, in order to parachute Coke to the troops. The image of an American opening a can with his teeth has become a symbol of manhood and bravery. However, the can’s importance is not limited to this image or the way in which it displaced the bottle during the subsequent Vietnam War, but is outweighed by something more significant. It inaugurated the age of the “empty”: a container to be discarded after its contents have been consumed.
Without doubt, the success of Coca-Cola goes back primarily to the excellence of the organizational structure it pioneered: the pyramid. The original company comprises the tip, and the independent bottlers and distributors come below it, forming the base. At first, this unique structure enabled it to obtain the necessary financing to saturate the American market. Later, it helped the company avoid Roosevelt’s campaign against monopolies and finally allowed Coca-Cola to infiltrate the world. In opening world markets, the company relied on establishing independent franchises headed by well-known local capitalists in every country. This practice produced astounding results. Most strikingly, the American bottle came to symbolize indigenous nationalism. (19-22)
coca-cola is a metaphor for colonialism, corruption, and consumption in the novel. and he shows precisely how deviously coca-cola (like all foreign franchises of american products) works to make people think that it is somehow “indigenous” because the product is produced locally. even though that product always has to send proceeds home to the u.s., and then, of course, they send them directly back to the zionist entity for investment (see post i linked to earlier on this). ibrahim shows how coca-cola came to invade egypt later in the novel:
As you have learned, your honors, this bottle entered our country at the end of the ’40s and beginning of the ’50s under the aegis of the vast advertising campaign that facilitated its spread to even the most remote villages and hamlets. Coca-Cola became a household word.
After the revolution, Coca-Cola’s popularity soon began to wane. I found out that the Doctor, among other factors, was responsible. To wit, he tried to compete by using a local beverage destined to succeed only for a short while.
However, the crushing blow fell at the beginning of the ’60s, when the Arab governmental agencies boycotting Israel discovered that Coca-Cola had given the Israelis bottling rights. As a result, Coca-Cola was blacklisted and barred from Arab countries. The market was wide open for the Doctor. (73-74)
ibrahim’s narrator gets even more specific in his indictment of coca-cola towards the end of the novel:
Many obscure phenomena are linked to the evolution of this well-known beverage.
For example, I read of a far-reaching crusade launched in 1970 in the United States over the mis-treatment of a quarter million migrant workers on farms controlled by Coca-Cola. I mean farms, not factories. This crusade spread to television and from there to Congress. Senator Walter Mondale, at that time a member of the Committee for Migrant Workers, summoned the president of Coca-Cola to answer officially, before the United States Senate, the accusations leveled against Coca-Cola.
Not three years later, the president of Coca-Cola participated in selecting that same Mondale for membership in the Trilateral Commission I told you about in our first meeting. Then he selected him as vice president to President Carter.
At the same time as Coca-Cola was accused of the theft of a handful of dollars from its workers, we read that it dedicated vast sums for charitable and cultural works ranging from an entire university budget to an important prize for artistic and literary creativity. It also presented a huge grant to the Brooklyn Museum in 1977 to rescue Egyptian pharaonic antiquities from collapse.
Coca-Cola, according to statistics for 1978, distributes two hundred million bottles of soft drinks daily throughout the world, leaving tap water as its only rival. So, now we see it sponsoring projects for the desalinization of sea water, relying on the Aqua Chem Company that I bought a few years ago, in 1970 to be precise.
These contradictions confused me, so I did several studies on Coca-Cola. Its policy was to remain committed to the two basic principles set down by its great founders. The first principle was to make every participant in the Coca-Cola enterprise rich and happy. The second was to restrict its energies to creating a single commodity: the well-known bottle.
But the winds of change that blew in the early ’60s forced a choice between the principles. In order not to sacrifice the first, Coca-Cola preferred to diversify its products. It began by producing other types of carbonated beverages, then extended its interests to farming peanuts, coffee, and tea. It had extensive holdings int hat same state of Georgia where it was founded. its farms neighbored those of the American president Carter, which perhaps was behind its involvement in public affairs, both domestic and international, and thus its policy of diversification grew all out of proportion.
Obviously, this policy couldn’t help but be successful. In this regard, it is sufficient to mention the return of the familiar bottle to both China and Egypt through the initiative in both countries of brave patriots, who acted on their principles.
However, this success produced a strange phenomenon. With modern methods and lower production costs gained by relying on poorly paid migrant workers, Coca-Cola became the largest producer of fresh fruit in the Western world. But, sadly, it found itself forced to dump a large portion of the yield into the sea to keep the world market from collapsing.
There was no solution to this problem except to continue diversifying. Coca-Cola exploited its great assets and expertise in the field of agriculture by sponsoring many nutritional programs in underdeveloped countries, among them a project to farm legumes in Abou Dhabi, undertaken by its subsidiary, Aqua Chem. Likewise, it extensively researched the production of drinks rich in proteins and other nutrients, thereby compensating consumers for the surpluses it had been forced to dump in the ocean. (124-127)
there is so much more to the novel, but i especially love the extended commentary on the evil, insidious inner workings of coke. and, of course, which was one of the first companies to move into occupied iraq and occupied afghanistan? coca cola. here is an article on coca cola’s war profiteering in afghanistan from 2006:
Coca-Cola has returned to war-torn Afghanistan with a gleaming $25m factory, calling the country a ‘missing link’ in its international business.
Afghanistan president Hamid Karzai opened the 60,000sq-metre Coca-Cola bottling plant in capital city Kabul, more than a decade after civil war forced the soft drinks group out of the country.
It is a controversial and risky move for Coca-Cola at a time when violence directed against NATO forces in the country, including American soldiers, appears in danger of spiralling out of control.
Coca-Cola’s Kabul plant will be operated under franchise by local businessman Habib Gulzar, and is expected to focus on core carbonated soft drink brands such as Coca-Cola, Fanta and Sprite. Bottled water could be added in the future.
Selcuk Erden, president of Coca-Cola’s Southern Eurasia division, which will oversee Afghanistan, said: “Afghanistan was the missing link in our geography and we were following this country very carefully.”
The group said the country had the potential to be a strong emerging market for its drinks.
Critics have suggested Coca-Cola is not what Afghans really need right now.
Afghanistan is ranked as the fifth poorest country in the world by the United Nations. “The depth of poverty in Afghanistan is reflected consistently in all human development indicators, revealing a mosaic of a nation in need of sustained assistance,” a recent UN development report says.
and here is an article on coca cola’s war profiteering in iraq from the guardian by rory carroll:
Coca-Cola has returned to Iraq after an absence of nearly four decades, triggering a cola war in a lucrative but potentially hostile market.
Coke ended its 37-year exile last week by setting up a joint-venture bottling company to compete with Pepsi for 26 million consumers.
The upsides for Coke include a thirst-inducing climate and burgeoning Islamic conservatism which has banned beer and other alcoholic drinks in much of the country.
The downsides, besides Pepsi’s head start, are a raging insurgency and banditry which threaten supply routes, and a perception that Coca-Cola is linked to Israel and “American Zionists”.
Coke withdrew from Iraq in 1968 when the Arab League declared a boycott because of business ties to Israel, leaving Pepsi to dominate the Middle East market for soft drinks. The boycott ended in 1991, but sanctions and wars kept Coke out of Iraq.
After a trickle of Coca-Cola imports from neighbouring countries, the company is attempting a proper comeback by launching a joint venture with a Turkish company, Efes Invest, and its Iraqi partner HMBS, which will reportedly bottle the Coke in Dubai and distribute it across Iraq.
“A local bottling company will employ local people to do this,” a Coca-Cola spokesman said yesterday. “This happens in most of the 200 countries in which we operate around the world, despite the perception of us as an American company.”
The response in Baghdad yesterday was mixed. One drink wholesaler, Abbas Salih, said the initiative was doomed. “Coca-Cola does business with those who are shooting our brothers in Palestine,” he said. “How can we drink it?”
when i was searching for material on why coca cola is evil i stumbled upon this great article from 2004 that i had never found that encapsulates the numerous reasons why one should boycott coca cola by mohammed mesbahi, which is long, but well worth the read for its variety of issues (health, environmental, political, etc.):
Coca Cola was invented in the United States in 1886 as a medicine, rather than a drink, to stimulate the brain and the nervous system, from a mixture of coca leaves and kola nuts, sweetened with sugar, hence the name Coca Cola. It was not until 1893 that Coca Cola was sold and promoted as a drink. Gradually the cocaine was eliminated, but in order to maintain the stimulant effect caffeine was substituted.
Phosphoric acid (0.055%) is now added to increase the fizziness and zingy taste. This gives the drink a pH of 2.8, making it almost as acidic as lemon juice (pH 2.2), which is why more sugar has to be added in order for it to taste sweet. Weak acidic solutions will dissolve the calcium in teeth over a period of time and will also interfere with calcium metabolism. This is especially of concern to post-menopausal women, who are already have a tendency towards osteoporosis.
Stimulants and sugar are habit forming, and Coca Cola contains large quantities of both. It is now sweetened with high fructose corn syrup. Fructose is a simple carbohydrate.
Carbohydrates are divided into two broad categories:
fructose (fruit sugar),
lactose (milk sugar),
sucrose (table sugar) etc.
High fructose corn syrup is produced by processing corn starch to yield glucose and then processing the glucose to produce a high proportion (80%) of fructose. This is not natural fructose, as found in fruit, since fruit usually contains 50% fructose, 50% glucose and is absorbed into the blood stream slowly, because the fruit also contains high levels of fibre. The fructose in high fructose corn syrup is absorbed into the body rapidly and transformed into glucose by the liver. There is currently some concern surrounding the consumption of high levels of fructose because it seems to interfere with copper metabolism and with the formation of collagen and elastin, essential components of the growing body.
When we eat (or drink) a high dose of sugar (sucrose, glucose or fructose) our blood glucose level rises suddenly, producing a feeling of elation. However high blood glucose levels also stimulate the pancreas to release insulin, which causes the glucose to be removed from the blood stream and converted into fat. This results in low blood sugar, low energy, irritability and low mood. At this point, we crave the feeling of elation associated with the sugar. This is why soft drinks are habit forming.
When, on the other hand, we eat complex carbohydrates, such as potatoes, bread, pasta, rice etc., the body breaks down these complex molecules gradually, over a period of several hours, into molecules of glucose. This glucose is released into the blood stream gradually, thus maintaining blood glucose at the level required by the body and brain for proper functioning.
Putting high quantities of sugar into drinks is an insidious way of introducing calories into people. People eating a chocolate bar are aware that they are consuming something fattening. People, especially children, consuming the same amount of calories in a drink are not. Regular consumption of drinks containing high levels of sugar lead to a gradual build up of stored fat and contribute to the rising levels of obesity in the West. Over-consumption of sugar causes over-stimulation of the pancreas. Over a period of many years, the pancreas loses its ability to produce adequate quantities of insulin. This leads to late-onset diabetes. Levels of late-onset diabetes have been rising steadily in the West over the past century.
Coca Cola, one of the world’s largest corporations, worth about ninety five billion dollars, owes much of its success to the massive marketing and advertising used to promote the product. It became a corporation early in the twentieth century and immediately began an aggressive advertising campaign throughout the US. The corporation used some advertising techniques of dubious morality, including funding the American Academy of Paediatric Dentistry and suppressing a World Health Organisation Report on healthy eating. The report stated that soft drink consumption contributed to obesity. But possibly the policy which caused the most public outrage was that of paying schools to sell Coca Cola in vending machines. The corporation realised that if they could sell Coca Cola to children, by the time they finished school they would become confirmed Coca Cola drinkers and would continue to buy the drink for the rest of their lives. This strategy was so successful that Coca Cola rapidly became the most popular drink in the US.
Long before the US market had become saturated, the corporation decided to target the next place with money to spend on drinks, i.e. Europe, where they now sell thirty percent of their product. Vending machines in schools soon became common place, despite opposition from concerned parents and teachers. Under-funded state schools found it difficult to refuse the money offered by Coca Cola.
The imposition of permanent advertising in schools, in the form of vending machines, certainly justifies a boycott, and indeed some schools have organised them, in protest against the Corporation’s monopoly of products sold in school vending machines. Groups at Universities in the US and the UK are also running boycotts in protest against Coke’s human rights abuses. Berkeley, New York University, Harvard, Yale, Rutgers, Macalister and University College Dublin all have ongoing boycotts.
Coca Cola has a history of human rights abuse. “It is a fact that the soft drinks giant from Atlanta, Georgia collaborated with the Nazi-regime throughout its reign from 1933 – 1945 and sold countless millions of bottled beverages to Hitler’s Germany.” From Coca-Cola Goes to War, Jones E and Ritzman F.
While the corporation, back in the USA, was promoting Coca Cola as a morale booster for the US troops, their German representative, Max Keith was sponsoring Nazi events, including the 1936 Olympics and situating advertisements close to Nazi leaders at rallies. Sales of Coke in Germany went from zero in 1929 to 4 million cases in 1939. Coke became the most popular drink in Germany and in 1944 the company sold 2 million cases. When the Nazis began their invasions of Italy, France, Holland, Luxembourg, Belgium and Norway Walter Oppenhof, Coca Cola’s German company lawyer, and Max Keith were employed by the Nazis’ Office of Enemy Property. They travelled with Nazi troops and were responsible for setting up Nazi Coca-Cola factories in expropriated soft drinks plants in countries occupied by the Nazis. They staffed these factories with kidnapped civilians. (See: http://xroads.virginia.edu/~CLASS/AM483_95/projects/coke/coke.html ).
But Coca Cola’s association with fascist regimes is not confined to world war history.
In the 1970s workers at Coca Cola bottling factories in Guatemala were killed, in the 1980s Coke supported the Apartheid system in South Africa and in the 1990s they supported the brutal Abacha regime in Nigeria.
Currently SINAL TRAINAL, the Colombian workers’ union is promoting a world wide boycott in order to raise awareness of the intimidation, torture, kidnapping, illegal detention and murder of workers in the Coca Cola bottling plants in Colombia.
On the other side of the world, in several South Indian states, including Kerala and Tamil Nadu, boycotts have been running for years, despite police repression, in protest against Coca Cola’s excessive water consumption, pollution of local wells and destruction of agriculture. The Corporation’s bottling factories have been pumping water from boreholes at such a rate that they have dried up the underground aquifers. They have also been distributing the sludge produced by the factory as fertilizer. It is true that this sludge does contain substances which fertilize the soil, but Exeter University analysed it for the Kerala Pollution Control Board and found that it contained dangerously high levels of toxic metals, including cadmium. These toxic metals leach into the ground water and are taken up by crops and therefore ingested by the local population. After the BBC aired a programme about this, Coca Cola was forced to stop dumping their toxic waste on the local population, but nothing was done to clean up the already polluted environment. The protest and boycott in India continue.
The Coca Cola Corporation owns four of the world’s most popular five soft drinks: Coca Cola, diet Coke, Fanta and Sprite.
Over the past five years, Coca Cola Corporation has realised that, as water resources dwindle worldwide, even more money can be made from selling bottled water. Their sales of water are growing exponentially. Brands include Bonaqua, Dasani (US) Kinley (India), Mount Franklin (Australia) Malvern (UK) and Ciel (Mexico), but soft drinks still account for 85% of their market (at the moment). They plan to expand massively in the bottled water market but most of their advertising will go into promotion of soft drinks. Soon Coca Cola, Pepsi and Nestle will be the three main corporations selling bottled water, an iniquitous market, often depriving people of their local source of spring water, and selling it back to them at unaffordable prices.
Max Keiser, investment activist, and Zak Goldsmith, editor of the Ecologist, have formed a partnership to target Coca Cola by bringing down the value of its shares. Keiser has developed a system for measuring a corporation’s vulnerability to a boycott. He calls it the Karmabanque (KbQ) Index. The KbQ index 2004 tracks the share price of high-performing but socially and environmentally irresponsible corporations, assuming their shares had been sold short on the 1 January 2004. A short sale is a bet that a trader makes that a company’s share price will fall. The further the company’s share price falls, the more money the trader makes. Selling short stocks hurts corporations because it deflates their share price. The KbQ rating determines where a company appears in the index, and combines the amount of dissent directed at a company and its boycott vulnerability ratio (BVR). A company’s BVR indicates how susceptible its stock price is to a consumer boycott. In order to work out a corporation’s vulnerability, its market capitalization should be divided by trailing annual sales. Currently, ExxonMobil’s BVR is close to $1, whereas Coca-Cola’s is closer to $5. In other words the Coca Cola Corporation is five times more vulnerable to a boycott than ExxonMobil.
Coca Cola’s appalling human rights record, combined with its high boycott vulnerability ratio make it the ideal target for a boycott. This is why Max Keiser and Zak Goldsmith have decided to launch a hedge fund, which will be used to buy Coca Cola shares. They will then sell the shares for less than they bought them for, which will bring down their value on the international stock market. They are relying on the continuing boycott of Coca Cola products to bring the share price down still further. They will then buy the shares at a lower price than they sold them for and sell them again for even less. All profits from this venture will be donated to the victims of Coca Cola in countries such as India and Colombia.
Max Keiser and Zak Goldsmith say that for every 1,000 new boycotters, they will increase the size of the hedge fund by £5000. Goldsmith’s Ecologist Magazine will publicize the boycott and audit, track and publish the results. Keiser recommends that pressure groups like Greenpeace and Friends of the Earth should decide what to boycott according to their Boycott Vulnerability Ratio.
There has been a history of Coca Cola boycotts in many parts of the world. But this is the first time that an investor has become actively involved in a world wide Coca Cola boycott. Max Keiser and Zak Goldsmith deserve our support. There is every reason to hope that they will succeed in bringing down the market value of Coca Cola, but for that they need more people and organisations to join the boycott.