Amid ongoing supply chain disruptions in the Middle East, major bottlers like Pepsi and Coca-Cola are facing challenges that are impacting their businesses. The conflict in the region has caused bottlers to struggle with sourcing essential materials like sugar, cans, and electricity, leading to production delays and decreased sales.
Hindi, manager of the Coke bottler in the West Bank, expressed concerns about the future of their operations if the situation continues. The cost of doing business in the Palestinian territories is significantly higher compared to neighboring countries, making it difficult for bottlers to sustain their operations.
The Pepsi bottling franchise has reported a 35% decrease in production due to a shortage of cans. Without cans, they are forced to use plastic bottles, resulting in lower profit margins. The high unemployment rate in the area has also affected local families’ ability to purchase Pepsi drinks.
As conflicts in the Middle East persist, businesses in the region are grappling with disruptions that are impacting their bottom line. The future remains uncertain for private sector players like Pepsi and Coca-Cola as they navigate these challenging circumstances.
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