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Tuesday, July 11, 2006

Not that they expect it to amount to anything, but this is good to read: Nestle’s Israel activity brings Arab boycott threat

The Arab League boycott office, based in Syria, last week threatened to boycott Swiss food giant Nestle (SWX:NESN), unless the company liquidated its activity in Israel, including its 53% stake in Osem Investments Ltd. (TASE: OSEM), worth NIS 2 billion.

In response, Nestle issued its own press release the next day on July 5, saying that it had no intention of capitulating to the Arab boycott. The company added that has 253,000 employees in over 100 countries, was not involved in politics, but in business, and also invested heavily in Arab countries.

Nestle stated, “Nestlé is regularly attacked by various Arab and Islamic circles for doing business in Israel. In the latest such moves, on 4 July 2006, the Damascus-based Arab League Central Boycott Office (CBO) added Nestlé to the list of companies to be boycotted because of links with Israel, although it seems likely that the decision will be ignored by most Arab League member states...

...Radical pro-Arab organizations in the UK, including an organization called “Friends of al-Aqsa” are calling for a boycott of Nestle products in the UK because of the company’s activity in Israel. This organization is also calling for boycotts of other international companies active in Israel. No company, including Nestle and L’Oreal Paris, have suspended their activities in Israel, either because of previous calls for a boycott or the present call.

Osem managing director Gad Propper told “Globes” today, “Nestle does not capitulate to boycotts. The fact that somebody in Syria decided to boycott Nestle does not mean that he has any influence on the company. I’m sure that it will not surrender, which is seen in the company’s official response.”

“Agence France Press” (AFP) reports that many Arab countries, including “most members of the Arab League” will probably ignore the call for a boycott.

Regardless, the Arab League Central Boycott Office has added Nestle to its blacklist of companies trading with Israel, and issued an ultimatum to the company to halt trade with Israel...

[h/t: isirota1965]

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