Berjaya Food announces losses, blames Starbucks boycott

 

Berjaya Food Berhad has announced a 38 percent drop in quarterly revenue year-on-year, due to a prolonged boycott against its main brand, Starbucks Coffee, amid the ongoing violence in Gaza.

After accounting for the disposal of its stakes in Jollibean Foods, Berjaya Food’s pre-tax loss for the six-month period ending Dec 31 is RM980,000.

This is in stark contrast to a pre-tax profit of RM102.09 million in the previous corresponding year, it said in a press statement yesterday.

“This drop in revenue was primarily attributed to an ongoing boycott linked to the Middle East conflict,” it said in a press statement.

Starbucks is the target of boycotts for Palestine after it took action against its worker’s union in the United States for posting its support for Palestine on social media.

For the six-month period ending Dec 31, Berjaya Food’s revenue decreased to RM461.90 million, down by almost RM100 million compared to the year before.

The group said it is optimistic that its performance will “rebound and regain momentum, viewing the current situation as short-term and anticipating positive progress moving forward”.

Consumer boycotts hurting major brands

Besides Starbucks in Malaysia and Brunei, Berjaya Food is also the owner and operator of the Kenny Rogers Roasters chain of restaurants in Malaysia.

It also produces baked goods under the Paris Baguette brand in the Philippines.

Consumer boycotts in support of Palestine are held worldwide significantly affecting major consumer brands.

Fast food chain McDonald’s in a recent announcement said it missed its sales targets but is still posting a profit on a global scale.

In Malaysia, the McDonald’s franchise owner is suing the local chapter of the Boycott Divest Sanction movement for Palestine, for alleged defamation.

Many pro-Palestine consumers have boycotted the brand after its Israel franchise gave free meals to the Israeli Defence Force.

McDonald's Malaysia, however, donated RM1 million to a humanitarian fund for Palestine. - Mkini