Regional brands enjoy sales surge as Pepsi and Coca-Cola face boycott battle
Soft drinks companies across the region are enjoying a sales boom as customers seek out alternatives to traditional US market leaders Pepsi and Coca-Cola, experts at Gulfood in Dubai said. The Middle East and Africa carbonated beverages market was worth $21.7 billion in 2024 and is projected to reach $26.3 billion by 2032, according to Market Data Forecast. While soft drinks have historically been popular across the region, demand for big-name alternatives is being driven by the Palestinian-led Boycott, Divestment and Sanctions movement, which campaigns against brands it accuses of links with Israel, including Coca-Cola and PepsiCo, experts said. In the UAE, there is also a big push towards healthier, sugar-free alternatives, as well as an energy drinks boom that's creating huge opportunities for companies in the industry. Jordan's Defaf Al-Nahrayn Company, which owns Matrix Cola, has seen a 200 per cent rise in sales since December 2023, export manager Firas Hamdan told The National. While the company was first established in 2008, it spent more than a decade catering to the demand for affordable alternatives in underdeveloped countries in Africa. After the Gaza war began in October 2023 and boycotts gained momentum, the company saw an opportunity to expand within the region. Reports indicate PepsiCo and Coca-Cola still enjoy growth in some Middle East markets, but western beverage brands faced a 7 per cent decline in sales in the first half of 2024 across the region, according to market researcher NielsenIQ. "In Jordan alone from April to September last year, we had a shortage because demand was so huge," said Mr Hamdan. "It started because of the boycott but after that the brand itself was already established in the market and people started asking for Matrix by name." The brand is now available in 45 countries and at Gulfood the company has finalised a deal to distribute widely in the UAE. "We're expanding globally right now," he said, adding that over the past two days they have also been approached by distributors across the world, including India, the US and Europe. Alsi Cola, which has been present in the Saudi Arabia market for more than 30 years, has also witnessed a surge in sales across the region, particularly in Oman and Jordan, in part due to the boycott, Ahsan Shams, sales manager of group company Coral General Trading, told The National. "We have almost 60 to 70 per cent of market share in Saudi Arabia ... and we are growing very fast in this region. We have also been approached by the American and Latin American market, even Europe," he said. Campa Cola, a flagship brand from India revived in 2023 by Reliance Consumer Products, announced its entrance into the UAE market on Tuesday at Gulfood. Chief executive Ketan Mody said the company was keen to serve the UAE's sizeable Indian population. 'The UAE, in a way, is very similar to India whereby they always prefer heritage brands and a proposition of global quality products at affordable prices, so it works out,' he told The National. Nida Zeeshan, a representative for Pakola, a 75-year-old soft drinks brand from Pakistan, said they've seen exponential growth in their home market over the past year, specifically due to the boycotts. Pakola is owned by Mehran Bottlers Limited, a manufacturer and retailer of various carbonated beverages, but it is most famous for its flagship product launched in 1950. 'We've got a lot of brands in Pakistan … and all of them have had phenomenal [growth]. Some are new, some are old, but even though they'd been there for a while, they were never out there like the way they are now,' she said. Warwick Gird, general manager of marketing at Spinneys Dubai, said the local supermarket chain has also seen rising interest in energy drinks. 'We are seeing customers looking for 'better for you' soda alternatives like sparkling flavoured water with zero calories or functional beverages like clean energy drinks.' One brand trying to capitalise on this trend is Egypt's Healthy and Tasty, which launched its aspartame and sugar-free Healthy Cola five months ago. It now has manufacturing plants in Saudi Arabia and is also in the process of setting up local production in the UAE. 'The Saudi market is huge, but there is a lot of demand for health products in the UAE,' said export development director Tamer Gharib. He added that they have also received huge interest from the US and Canada during Gulfood. Saudi Arabia's Milaf Cola, the world's first carbonated soft drink made from dates, also has a buzzing exhibition stand at Gulfood. The kingdom's Minister of Agriculture officially launched the product in December as part of Thurath Al Madina, a subsidiary of the Saudi Public Investment Fund. Meanwhile, another Saudi brand, Kinza, which launched in 2022, is a title sponsor at the Dubai event. It has seen huge demand for its products across the Gulf and is looking to distribute more widely in the UAE, although a representative told The National they have seen less interest in the Emirates when compared to other regional markets. Dubai resident Danielle Kamar said there is a clamour for alternatives in the UAE. She started the Instagram account @heartlocal_dxb after she saw more consumers turning away from major global brands and said her followers often ask her to suggest local alternatives to Coca-Cola. 'This is the most frequent request that comes back to Heart Local for a home-grown alternative, especially during gathering seasons like the winter holidays and now pre-Ramadan,' she told The National. 'There seems to be a clear appetite to replace those everyday, almost knee-jerk purchases that wouldn't be thought of twice – like Coke or Pepsi for guests – with a UAE-born option.' Ms Kamar now directs her followers to Shams, a UAE-made, caffeine-free organic cola that is made with only five ingredients, including agave syrup for sweetness, capitalising on these clear local consumer trends. '[It is] not only home-grown, but health-conscious, too,' she said. 'I'm really glad this has been made.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
a day ago
- Gulf Today
Trump approves Nippon Steel's $14.9 billion purchase of US Steel
US President Donald Trump approved Nippon Steel's $14.9 billion bid for US Steel, capping a tumultuous 18-month effort by the companies that survived union opposition and two national security reviews. Trump signed an executive order saying the tie-up could move forward if the companies sign an agreement with the Treasury Department resolving national security concerns posed by the deal. The companies then announced they had signed the agreement, fulfilling the conditions of Trump's directive and effectively garnering approval for the merger. 'We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,' the companies said in the statement, thanking Trump. They added the agreement includes $11 billion in new investments to be made by 2028 as well as governance, production and trade commitments. Nippon Steel will buy a 100 per cent stake in US Steel, a spokesperson for the Japanese company in Tokyo said on Saturday. The steelmakers provided no detail on the 'golden share' they pledged to issue to the US government, raising questions about the extent of US control. ' 'US Senator David McCormick of Pennsylvania, where US Steel is headquartered, said last month the golden share would give the government veto power over key decisions relating to the American steel icon. Reuters has reported that Nippon Steel would invest an additional $3 billion for a new mill after 2028. The takeover will set up the ailing US firm to receive the critical investment, allowing Nippon Steel to capitalise on a host of American infrastructure projects while its foreign competitors face steel tariffs of 50 per cent. The Japanese firm also avoids the $565 million in breakup fees it would have had to pay if the companies had failed to secure approvals. For Nippon Steel, the world's fourth-biggest steelmaker, securing a foothold in the US is key to its global growth strategy. The US steel market, including high-grade steel, Nippon Steel's specialty, is growing amid rising global trade tensions. Still, some Nippon Steel investors are concerned about short-term financial pressure due to the scale of the additional investment commitment. The Japanese government, rushing to try to secure a trade deal with the US by the time Trump and Prime Minister Shigeru Ishiba meet at the Group of Seven summit starting on Sunday, applauded the Nippon-US Steel agreement. 'The government of Japan welcomes the US government's decision, as we believe this investment will enhance innovation capabilities in the US and Japanese steel industries and further strengthen the close partnership between our two countries,' Economy, Trade and Industry Minister Yoji Muto said in a statement on Saturday. Friday's announcement was hardly guaranteed, even if many investors had seen approval as likely after Trump headlined a rally on May 30 giving his vague blessing to an 'investment' by Nippon Steel, which he described as a 'great partner.' Shares of US Steel had dipped earlier on Friday after a Nippon Steel executive told Japan's Nikkei newspaper that the takeover required 'a degree of management freedom' to go ahead after Trump said the US would be in control with the golden share. The bid has faced opposition since Nippon Steel launched it in December 2023. After the United Steelworkers union came out against the deal last year, both then-President Joe Biden, a Democrat, and Trump, a Republican, expressed their opposition as they sought to woo voters in the presidential campaign in the swing state of Pennsylvania. Shortly before leaving office in January, Biden blocked the deal on national security grounds, prompting lawsuits by the companies, which argued the national security review they received was biased. The Biden White House disputed the charge. The steel companies saw a new opportunity in the Trump administration, which opened a fresh 45-day national security review into the proposed merger in April. But Trump's public comments, ranging from welcoming a simple 'investment' in US Steel by the Japanese firm to floating a minority stake for Nippon Steel, spurred confusion. While many investors saw approval as likely after Trump headlined a rally on May 30 giving his vague blessing to an 'investment' by Nippon Steel, which he described as a 'great partner', Friday's announcement was hardly guaranteed. The bid, first announced by Nippon Steel in December 2023, has faced opposition from the start. Both Democratic former President Joe Biden and Trump, a Republican, asserted last year that US Steel should remain US-owned, as they sought to woo voters ahead of the presidential election in Pennsylvania, where the company is headquartered. Reuters
Gulf Today
2 days ago
- Gulf Today
Trump's tax-cut bill could hold back projects
US President Donald Trump's tax and spending bill would make it harder for American critical minerals companies to compete with China because it eliminates a tax credit for boosting domestic production of nickel, rare earths and other materials used in advanced electronics and weaponry, reported Reuters. With Trump and Republican lawmakers aiming to cut government support for green energy projects, the US House of Representatives passed a version of his "One Big Beautiful Bill Act" last month that eliminates the so-called 45X credit. The Senate is now debating the bill. Former President Joe Biden's 2022 climate change law, the Inflation Reduction Act, created the 10% production credit — a reduction in corporate taxes for critical minerals extraction and processing. The tax break also covers solar, battery and wind projects. The version of the bill that passed the House treats government incentives for wind turbines the same as those for mining projects that many view as crucial for national security. Critical minerals companies now say their projects are collateral damage to the political feud over renewable energy. The tax credit is already law and part of the current federal budget. The nonpartisan Congressional Budget Office, which scores the cost of legislative proposals when asked by Congress, has not studied how much would be saved by removing the credit. The Republican majority in Congress is seeking savings to fund other priorities such as tax cuts, defense and balancing the budget. This month, the hard-right House Freedom Caucus said it "will not accept" attempts to "water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation." Miners, though, say they need the credit to compete with China. Beijing has halted exports of some critical minerals, used its control of rare earths to strike a trade agreement with Washington, and flooded global markets with cheap supply of nickel, cobalt and lithium. The traditionally conservative mining industry now finds itself in the unusual position of needing Washington's support to grow and, in some cases, survive. The owner of the only US cobalt mine went bankrupt this year after Chinese miners depressed global prices of that metal. "If we do not have that tax credit, critical minerals producers in the U.S. are at risk of succumbing to closures," said KaLeigh Long, founder and CEO of Westwin Elements, which is building the country's only commercial nickel refinery. Westwin might not be able to service its debt without the tax credit, Long said, noting the company's loans were modeled using the expectation it would be permanent. Last month, Long wrote a letter asking the Senate to keep the credit. It was co-signed by 30 industry executives. Any changes the Senate makes to the bill must be reconciled with the House version before being sent to Trump, observed Reuters. Several House members have admitted they did not read the entire bill before voting for it, including Congresswoman Marjorie Taylor Green, a Georgia Republican, and Congressman Mike Flood, a Nebraska Republican. The House version does include $2.5 billion to fund a critical minerals stockpile and $500 million for a Pentagon mining loan program, although large mines often cost far more, noticed Reuters. House Democrats unanimously voted against the bill but their criticism has focused on tax cuts they say will widen the deficit while requiring cuts in health care, food assistance, education, scientific research and other programs. "There's so many issues right now under consideration in Congress and this one isn't breaking through, but it will certainly break through when we have a shortage of minerals in five years," said Jeff Green, a critical minerals industry consultant.
Arabian Post
2 days ago
- Arabian Post
The High Stakes of the Latest U.S.-China Agreement
Dr Imran Khalid 'We made a great deal with China. We're very happy with it.' So declared President Donald Trump in his familiar tone of triumphant ambiguity on June 11, fresh off what was touted as a breakthrough agreement to restore a trade truce between the United States and China. But if history has taught us anything, it is that 'done deals' in the Trumpian lexicon tend to be either dangerously fragile or conveniently fungible. The latest accord, emerging from two days of intense talks in London, follows an alarming spiral in trade tensions that had once again threatened to upend global markets and rekindle the tit-for-tat tariff warfare that haunted the latter years of Trump's first term. According to Trump, China has committed to lifting its restrictions on the export of rare earths – materials critical to the global technology and defense sectors – while the U.S. has agreed to a calibrated rollback of punitive measures, including the threatened revocation of visas for Chinese students. ADVERTISEMENT As ever, the devil is not just in the details, but in their implementation. Much like the May Geneva agreement that this deal purports to reinforce, the London framework is conditional, tentative, and, crucially, subject to 'final approval' by both President Trump and President Xi Jinping. That qualifier alone renders the euphoria premature. Still, to be charitable, the very fact that Washington and Beijing are speaking the language of dialogue rather than confrontation is an encouraging sign. Following a phone call between the two leaders earlier this month, there appears to be a renewed willingness – albeit under duress – to keep diplomacy afloat. For a world economy battered by uncertainty, this resumption of talks is, if nothing else, a stabilizing force. Yet, Trump's boastful framing – that the U.S. walks away with a 55% tariff shield while China gets 10% – betrays a zero-sum worldview that continues to inform his trade doctrine. The truth, however, is far less tidy. Tariffs have proved to be a double-edged sword, inflicting damage on American consumers, industries, and allies as much as they have squeezed Chinese exports. The World Bank's recent downward revision of global growth forecasts points to tariffs and unpredictability as 'significant headwinds,' underlining the global costs of such brinkmanship. Beijing, for its part, has projected a more measured tone. Chinese Vice Premier He Lifeng, in remarks following the London consultations, emphasized mutual benefit, calling on the U.S. to 'honor their words with actions.' The Chinese side welcomed the 'principled consensus' as a foundation for predictability and stability in bilateral economic relations. While Beijing's rhetoric may be couched in diplomatic platitudes, it signals a strategic patience that stands in stark contrast to Trump's performative deal-making. Indeed, despite facing considerable pressure – both domestic and international -China has remained consistent in its emphasis on dialogue, reciprocity, and multilateralism. It is no secret that Beijing is playing a longer game. From its support for a multilateral trading system to its efforts in promoting South-South cooperation, China has positioned itself as a steady hand amid a turbulent global order. ADVERTISEMENT In this light, the reestablishment of a U.S.-China economic and trade consultation mechanism should be viewed as more than a temporary fix. It offers a framework through which recurring disputes can be ironed out, interests aligned, and trust slowly rebuilt. Importantly, it provides a venue for strategic communication -something sorely missing during the height of tariff wars in 2018–19. However, for this framework to bear fruit, both sides must resist the urge to revert to maximalist posturing. The United States must accept that unilateralism – whether in tariffs or technology controls – cannot substitute for a sustainable policy. Likewise, China must be prepared to meet the U.S. halfway, especially on issues of market access, intellectual property, and transparency. The elephant in the room, of course, is the technological cold war that continues to simmer beneath the surface. While rare earths and tariff percentages dominate headlines, it is the battle over semiconductors and AI supremacy that threatens to define the next phase of U.S.-China relations. Washington's decision to maintain restrictions on high-end AI chips – particularly those from Nvidia- while easing others, reveals both the complexity and the stakes involved. Beijing, not surprisingly, has responded with innovation. The resurgence of Huawei, once a poster child of American sanctions, stands as testament to China's determination to chart its own technological path. As Huawei's founder Ren Zhenfei put it bluntly this week, China may still be a step behind, but it is catching up – by stacking and clustering if necessary. In the short term, these dynamics will continue to fuel friction. But in the long term, they offer a compelling reason for structured cooperation. For neither side can afford the costs of sustained decoupling. The global economy – still reeling from inflationary shocks, supply chain disruptions, and climate-induced volatility – desperately needs the world's two largest economies to find common ground. To that end, the inclusion of Chinese students in American universities, affirmed in this deal, is more than a diplomatic gesture. It is a recognition that people-to-people ties remain a cornerstone of bilateral engagement. Academic exchanges, research collaboration, and cross-cultural education build bridges that tariffs and bans cannot destroy. They plant the seeds of mutual understanding in a landscape too often scorched by suspicion. The road ahead remains bumpy. Structural trade conflicts persist, strategic mistrust abounds, and electoral politics – particularly in the U.S. – can derail even the most promising of frameworks. But the London agreement offers a glimpse of what is possible when mutual interest outweighs mutual animosity. This development not only helps stabilize U.S.-China relations but also injects much-needed momentum into the global economy. It serves as a reminder that even amid intensifying geopolitical rivalry, there is still space – indeed, an urgent need – for pragmatic cooperation. Trump may brand it a win, but real victory lies not in tariffs or trophies, but in the hard, unglamorous work of sustained diplomacy. For now, both sides have stepped back from the precipice. The challenge will be to keep walking forward – together. Also published on Medium. Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
