Swiss food giant Nestlé has been added to the Arab League’s list of companies to be boycotted. However, Nestlé told just-food today (5 July), the world’s largest food company will not allow political pressure to shape its investment policy.
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The Damascus-based League of Arab States is an organisation of 22 full-member nations (plus Eritrea who joined in 2003 as an observer) that co-ordinate economic affairs, including commercial relations. The League’s Central Boycott Office informed Nestlé that the company had been added to the list because of its links with Israel.
However, Nestlé’s François Perroud told just-food: “We make our investment decisions based on economic and industrial viability – not political concerns. A core corporate value at Nestlé is respect for cultural, ethnic and religious diversity.”
Moreover, Perroud suggested that the Arab League’s decision might be foolhardy given the investments Nestlé makes in Muslim countries. “Nestlé employs 23,000 people in 51 factories and around 150 sales and distribution sites in Muslim countries. Sales in these countries generate CHF3.3bn (US$2.67bn) in annual turnover and we have reinvested over CHF1bn, contributing to the economic prosperity in these countries,” he said, adding that this illustrates that Nestlé values cultural respect and cooperation.
Looking to the damage that the boycott might do, Perroud said that it was hard to judge at this stage. However, he continued, “based on the past experience of other corporations, I hope it will be minimal.”
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