Coke suffers brand backlash

KUALA LUMPUR - Coca-Cola needs to raise its local relevance following a wave of boycotts in Malaysia over US support for Israel's attacks on Gaza. The brand, say industry sources, has not done enough to present itself as a local operation. Ismael Ibnoulouafi, CEO of The Brand Union’s Southeast Asia Hub, said Coke required a longer-term approach than it has so far adopted, pointing to action taken by McDonald’s including partnering with schools and other CSR activity. “As evident from this episode, brands these days have to do more to be a part of a country’s social, cultural and economic climate.” Another regional PR agency CEO argued that Coke should start leveraging on local communities and meetings, such as “local mosque heads and Malay-language publications and blogs” to do damage control. Over 2,000 Muslim restaurants in Malaysia have pledged to remove Coca-Cola from their menus as part of a boycott of US products. The nationwide boycott is led by the Malaysian Muslim Consumers Association with support from the Muslim Restaurant Operators Association. Besides Coke, 100 other US brands including Starbucks, Colgate and McDonald’s could be caught up in the action, which has been encouraged via social media.Coke’s PR strategy has to date focused on emphasising its political neutrality and its role in the local economy. “Given the local nature of our business, we believe that calls for boycotts of our products are not the appropriate way to further any causes, as they primarily hurt the local economy, local businesses and local citizens,” said Kadri Taib, public affairs and communications director for Coke Malaysia. Jorg Dietzel, principal of Jorg Dietzel Brand Consultants Singapore, said Coke is the latest brand to be targeted due to US foreign policy. He said stressing the local nature of its business is the right approach. “When people realise how important these brands are to their economy, the boycotts will stop.”