Coca-Cola’s recent efforts to distance itself from Israel in response to escalating boycotts across the Middle East and Asia have backfired spectacularly, turning into a textbook case of corporate messaging gone wrong. As sales plummeted in response to boycotts targeting companies with perceived ties to Israel, Coca-Cola’s franchise in Bangladesh launched an ambitious advertising campaign, featuring popular TV star Sharaf Ahmed Jibon.
In the ad, Jibon, portraying a shopkeeper, reassures customers that Coca-Cola is not an Israeli product, emphasizing the company’s connections to Muslim communities. “Even Palestine has a Coke factory,” he tells a group of boys, convincing them to drop their political objections and enjoy the beverage.
However, the ad’s core message turned out to be misleading. The so-called Palestinian factory is actually an Israeli-owned bottling plant located in an East Jerusalem settlement, considered illegal under international law. The false claim ignited immediate backlash, intensifying the anger directed at Coca-Cola. The company was forced to pull the ad from all platforms and issued an apology, calling the campaign a “regrettable mistake.”
“This incident highlights the risks for American companies trying to navigate the widespread anger over U.S. support for Israel’s actions in Gaza,” said Scott Leith, Coca-Cola’s Vice President for Global Strategic Communication. “We partner with local franchises to serve local communities. Unfortunately, the recent video missed the mark.”
Since the start of Israel’s military offensive in Gaza following the October 7 Hamas attacks, which killed over 1,200 Israelis, Palestinian casualties have soared to over 39,000, according to local health officials. The Israeli government’s restrictions on humanitarian aid have led to famine conditions in parts of Gaza, further fueling regional anger and driving the boycotts against major U.S. brands like Coca-Cola, McDonald’s, Starbucks, and KFC.
In the wake of the boycott, McDonald’s reported a 4 percent drop in shares after missing revenue targets in the Middle East, while Starbucks’ earnings also fell short of expectations, partly due to the boycott’s impact.
The Coca-Cola boycott traces back to the Central Bottling Company, Coca-Cola’s franchisee, which operates in the Atarot Settlement Industrial Zone in Israeli-occupied Palestinian territory. Omar Barghouti, co-founder of the Boycott, Divestment, Sanctions (BDS) movement, called the ad’s promotion of a “Palestinian” factory particularly offensive.
“Coca-Cola must think Muslims in Bangladesh, and elsewhere, are gullible enough to fall for this crude propaganda,” Barghouti said.
Set in a bustling Bangladeshi marketplace, the ad features Jibon downplaying any connections to Israel, stating that Coke has been enjoyed in 190 countries for 138 years, including in Turkey, Spain, Dubai, and Palestine. However, this misleading portrayal quickly led to professional consequences for the actors involved, who faced backlash and even death threats.
One of the actors, Shimul Sharma, issued a public apology, vowing to only accept projects that respect “human rights” in the future. Jibon also distanced himself from the controversy, stating that the commercial was merely part of his “professional work” and affirming that he has never supported Israel and never will.
Despite Coca-Cola’s swift removal of the ad and the cancellation of another planned ad, the damage was done. The company’s sales in the region, already down by 23 percent before the ad aired, took another hit.
Paul Argenti, a corporate communication professor at Dartmouth University, criticized Coca-Cola’s handling of the situation. “In sensitive situations like this, your facts must be accurate and your messaging airtight,” Argenti said. “Coca-Cola wasn’t quick enough in pulling the ad or issuing an apology. These are mistakes that a company with Coca-Cola’s reputation should not be making.”
