Starbucks boycott: Big blow to coffee chain Starbucks, loss of 11 billion dollars

Houston. Political tensions continue around the world. Amidst this tension, Seattle-based Starbucks Corporation has also seen a negative impact. Starbucks has suffered huge losses due to poor sales and boycotts of its products. Due to this continuous boycott, the company has had to suffer a loss of about 11 billion dollars. The company has suffered so much loss. Due to this the total value of the company has decreased by 9.4 percent.

Due to the continuous boycott against the company, there is a big decline in the shares of Starbucks. According to the data, Starbucks shares have fallen by 8.96 percent. The company has suffered a loss of US $ 11 billion due to the fall in shares. Let us tell you that the company was in trouble after a tweet by Starbucks Workers United. After this the boycott of the company’s products started. The labor union represents many of its baristas and has expressed solidarity with Palestinians in the ongoing violent conflict in Gaza.

In this regard, an industry analyst says that the boycott continues amid Israel’s aggression on the Gaza Strip. Along with this, dissatisfaction is also widespread regarding the company. The future of the company is also in a challenging situation. The shares of the company continuously remain in the red mark in the stock market. Starbucks’ stock has declined for 12 consecutive trading sessions. According to the statistics, this is the first time that since the company went public in the year 1992, the company’s shares are facing decline for so many consecutive days. The stock is currently trading at around US$95.80 per share, down from its yearly high of US$115.

The company is facing the challenge of maintaining its brand reputation amid global issues. In a recent call with analysts, Starbucks Chief Executive Officer (CEO) Laxman Narasimhan had said he remains optimistic about the company’s diversified channels and ability to retain customers despite macroeconomic challenges and changing consumer behavior. Starbucks in Egypt reportedly fired several employees in late November after being financially hit by the boycott as it is forced to cut expenses.