• Source:PTI
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Amid an ongoing boycott due to its support for Palestinians, Starbucks Corporation, situated in Seattle, is experiencing rapid effects from worldwide political unrest. The firm has lost around USD 11 billion in value, erasing 9.4 per cent of the company's total value.

Since its November 16 Red Cup Day campaign, shares of Starbucks have fallen 8.96 per cent in just 19 calendar days, which equates to a nearly USD11 billion loss, amid analysts' reports of slowing sales and a subdued response to the holiday season's offerings.

The boycotts at the Seattle, Washington-based chain have deep roots, touching on sensitive geopolitical issues. The company got into trouble after Starbucks Workers United, the union representing many of its baristas, expressed solidarity with Palestinians.

Seattle-based Starbucks faces boycotts for expressing its solidarity with Palestinians. (Image credit: Reuters)

"Amid an ongoing boycott due to the Israeli occupation's aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company's future," an industry analyst said as quoted by news agency PTI.

Starbucks stocks declined for 12 consecutive stock market sessions, the longest-ever recorded streak since the company went public in 1992, and the stock currently hovers at around USD95.80 per share, down from its yearly high of USD115.

The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues. Although the corporation has refuted any misconduct in the instances, it is difficult to uphold its reputation as a brand in the face of contentious global issues. international challenges.

Starbucks CEO Laxman Narasimhan expressed optimism during a recent call with analysts over the company's ability to engage customers across a variety of channels despite macroeconomic problems and shifting consumer behaviour.

The recent boycott of Starbucks comes in part of a large boycott of several global brands over their support of Israel. Starbucks in Egypt reduced staff in late November as a result of the boycott's financial impact, which forced the company to make cost reductions.

(With Inputs From Agency)