Starbucks has lost nearly $11 billion in market value, Newsweek reported, citing intense boycotts and labor strikes in support of Palestine.
Ahead of the holidays, the corporation announced its “Red Cup Day,” during which it would give consumers the chance to get a free reusable holiday cup with every purchase.
However, since announcing the promotion in mid-November, the corporation has seen its stock drop 8.89 percent, or about $10.98 billion. That’s the biggest fall in stocks since 1992, Newsweek reported.
The same media reports that this is probably a reflection of global calls to boycott brands and franchises that economically benefit Israel.
Starbucks has lost $10.98 billion in value, with these losses erasing 9.4% of the company’s total value.
The loss comes amidst an ongoing boycott due to the corporation’s support for Israel and its genocide in #Gaza. pic.twitter.com/nABhcSmATX
— Quds News Network (@QudsNen) December 6, 2023
The boycotts at the Seattle, Washington-based chain have deep roots, touching on sensitive geopolitical issues after the company found itself in hot water following a tweet from Starbucks Workers United, the union representing many of its baristas, expressing solidarity with Palestinians.
The swift corporate response sparked a series of boycotts, with calls to action resonating across social media platforms. The company’s legal actions against the union have intensified the debate, leaving Starbucks to navigate its business operations amid political expression.
The strikes, led by unionized workers, highlighted an urge for improved staffing, scheduling, and bargaining over contract negotiations. The workers demand better working conditions, especially on high-traffic days that they say test the limits of staff capacity and morale.
The company denied any wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues. In a recent call with analysts, Starbucks CEO Laxman Narasimhan said he remains optimistic about the company’s diversified channels and its ability to engage customers despite macroeconomic challenges and changing consumer behaviors.