A report reveals that Sudan’s paramilitary RSF controls gum arabic, a key ingredient for Coca-Cola and Pepsi. This situation arises amid ongoing civil conflict, with significant humanitarian implications and the potential for brands to indirectly fund armed groups. Sales have declined in the Middle East due to recent boycotts over geopolitical issues, necessitating reevaluation of sourcing practices and reputational management.
A recent report indicates that the Rapid Support Forces (RSF), a paramilitary group in Sudan, controls the access to gum arabic, a key ingredient in products made by major brands like Coca-Cola and Pepsi. Gum arabic, derived from the sap of acacia trees, is crucial not only for these soft drinks but also for various other products, including cosmetics and medicines. Approximately 70 percent of the world’s supply is sourced from Sudan, where the RSF dominates vast areas.
The CEO of Afritec, one of Sudan’s prominent suppliers, revealed that he routinely pays the RSF $2,500 per truck to facilitate transportation of gum arabic to the ports. According to him, “They stop the trucks and you have to pay for the trucks to move.” The ongoing civil war in Sudan has exacerbated the humanitarian crisis, with the UNHCR reporting that 12.5 million people have been displaced and thousands killed as a result of the conflict between the RSF and the Sudanese Armed Forces (SAF).
Documents obtained by Bloomberg further elaborate that the SAF has imposed additional fees amounting to about $155 per 100kg of gum arabic exported from Port Sudan. Thus, transporting gum arabic out of the country necessitates payment to armed groups linked to war crimes. Despite inquiring, Bloomberg received no responses from Coca-Cola, PepsiCo, and Danone regarding this critical issue.
Meanwhile, Nestlé emphasized its commitment to responsible sourcing, and Mars condemned any form of bribery or corruption, stating it is actively engaging with suppliers over the troubling conditions in Sudan. Recently, both Coca-Cola and Pepsi have also been facing a boycott in the Middle East due to perceived complicity in geopolitical issues, leading to a reported 7 percent decline in sales in the first half of 2024, according to NielsenIQ.
In summary, the control of crucial gum arabic supplies by Sudan’s RSF highlights significant ethical concerns regarding the sourcing practices of global brands like Coca-Cola and Pepsi. The ongoing conflict and humanitarian crisis result in companies potentially facing payments to groups implicated in severe human rights abuses. Additionally, the geopolitical backlash in the Middle East has negatively impacted sales for these companies, signaling a need for careful reconsideration of procurement and reputational strategies.
Original Source: www.middleeasteye.net
