Challenges for Coca-Cola and Pepsi Amid Sudan’s RSF Control of Gum Arabic

Sudan’s RSF controls gum arabic, vital for Coca-Cola and Pepsi. This oversight presents ethical sourcing challenges amid the ongoing civil conflict in Sudan, which has resulted in a severe humanitarian crisis. Companies are pressured to address their supply chain impacts while facing boycotts in the Middle East due to wider geopolitical issues.

A recent report indicates that Sudan’s Rapid Support Forces (RSF), a paramilitary group, control the essential ingredient gum arabic used by major brands like Coca-Cola and Pepsi. Gum arabic, an organic emulsifier sourced from acacia tree sap, is crucial for various products including soft drinks, soaps, medicines, and cosmetics. Approximately 70 percent of the global supply is produced in Sudan, particularly in areas predominantly governed by the RSF.

Hisham Salih Yagoub, an influential supplier in Sudan, revealed that he routinely pays the RSF $2,500 per truck to facilitate transportation of gum arabic to ports. He described the situation as precarious, explaining that “they either steal some of it or they make you pay.”

Since April 2023, Sudan has been experiencing a civil conflict involving the RSF and the Sudanese Armed Forces (SAF), resulting in a severe humanitarian crisis. According to UNHCR reports, approximately 12.5 million individuals have been displaced, with thousands reported dead. Both factions have been accused of committing human rights violations, including sexual assault and torture.

Documents obtained by Bloomberg suggest that the SAF has instituted fees amounting to $155 per 100kg of gum arabic, indicating that shipments likely require payments to armed groups implicated in war crimes. Inquiries directed at Coca-Cola, PepsiCo, and Danone regarding these allegations did not yield responses. Meanwhile, Nestle affirmed their commitment to ethical sourcing, and Mars stated they oppose corruption and are engaging suppliers on the situation in Sudan.

In addition to these issues, Coca-Cola and Pepsi have faced a boycott in the Middle East due to perceived support for Israel during recent conflicts in Gaza, affecting their sales significantly. Market analysis shows a 7 percent downturn in the sales of western soft drink brands in the region during the first half of 2024.

The control of gum arabic by Sudan’s RSF highlights significant ethical and operational challenges for companies relying on this ingredient. The ongoing civil conflict has not only led to a humanitarian crisis but has also complicated the supply chain for major global brands. As awareness of these issues grows, companies must navigate their sourcing practices responsibly and address the associated risks of operating in conflict zones.

Original Source: www.middleeasteye.net