Nestle boycott starts Friday. Here's why people are boycotting and the brands are included

Nestle boycott starts Friday. Here's why people are boycotting and the brands are included

  • 21.03.2025 12:32
  • eu.usatoday.com
  • Keywords: Nestle, Walmart, Amazon, McDonald's

A weeklong boycott of Nestlé began on March 21, organized by People’s Union USA, protesting DEI rollbacks and business practices. Schwarz, a meditation teacher turned activist, targets Nestlé for its water extraction in Flint and chocolate supply chain, among other issues, while also planning future boycotts against Walmart, Amazon, McDonald's, and others.

Amazon NewsWMTsentiment_dissatisfiedAMZNsentiment_dissatisfiedMCDsentiment_dissatisfied
open_in_newOriginal article

Estimated market influence

Nestlé

Negativesentiment_dissatisfied
Analyst rating: N/A

People are boycotting Nestlé due to concerns about its DEI programs and business practices, such as water extraction in Flint, Michigan, and supply chain issues for chocolate products.

Walmart

Walmart

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Scheduled for a boycott starting April 7-14 and May 20-26 due to perceived rollbacks of DEI programs.

Amazon

Amazon

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Scheduled for a boycott starting May 6-12 due to similar concerns about DEI programs.

McDonald's

McDonald's

Negativesentiment_dissatisfied
Analyst rating: Buy

Scheduled for a boycott starting June 24-30 due to perceived rollbacks of DEI programs.

Context

Analysis of Nestlé Boycott 2025: Business Insights and Market Implications

Key Facts and Data

  • Boycott Duration: March 21-28, 2024
  • Organizer: People's Union USA, led by meditation teacher-turned-activist Andrew Schwarz based in Chicago
  • Target Companies: Nestlé, Walmart, Amazon, McDonald's, General Mills, Target
  • Reasons for Boycott:
    • Perceived rollback of Diversity, Equity, and Inclusion (DEI) programs
    • Concerns over environmental practices (e.g., water extraction in Flint, Michigan)
    • Supply chain issues related to chocolate products

Nestlé Product Portfolio Under Boycott

The boycott calls for avoiding all Nestlé-owned products, including:

  • Acqua Panna mineral water
  • Bear Brand milk drinks
  • Boost nutritional drinks
  • Carnation dessert sauces, drinks, and powders
  • Cheerios cereal
  • DiGiorno frozen pizza
  • Gerber baby food
  • Hot Pockets snacks
  • Häagen-Dazs ice cream
  • KitKat candy
  • La Vie mineral water
  • Lean Cuisine meals
  • Purina pet food
  • Sanpellegrino water
  • Starbucks Coffee at Home products

Market and Business Impact

  • Short-Term Sales Impact: Potential decline in sales for Nestlé's wide product range during the boycott period.
  • Reputation Risk: Damage to brand image due to consumer perception of DEI and environmental practices.
  • Competitive Dynamics: Other major corporations (Walmart, Amazon, McDonald's) are also targeted, indicating broader consumer sentiment against corporate policies.

Strategic Considerations

  • Nestlé's Response:
    • Nestlé has a dedicated DEI page and employs a Director of Diversity, Equity, and Inclusion.
    • No public comment on the boycott, but internal efforts suggest ongoing DEI initiatives.
  • Consumer Engagement:
    • Activists may leverage social media and grassroots campaigns to amplify the boycott's reach.
    • Companies like Nestlé may need to engage in clearer communication about their DEI and sustainability practices.

Long-Term Effects

  • Potential for Broader Trends: The boycott aligns with growing consumer demand for socially responsible business practices, potentially influencing other industries.
  • Regulatory Implications: Possible future regulatory scrutiny on DEI and environmental policies if public pressure intensifies.

Competitive Landscape

  • Retailers at Risk: Retailers like Walmart and Amazon may face reputational and sales risks due to their association with boycotted brands.
  • Shift in Consumer Behavior: The trend reflects a shift toward ethical consumerism, where purchasing decisions are increasingly influenced by corporate social responsibility (CSR) practices.

Conclusion

The Nestlé boycott highlights the growing importance of DEI and environmental sustainability in business operations. While the immediate impact may be limited to sales during the boycott period, the long-term implications could drive broader industry changes toward more socially responsible practices. Companies like Nestlé and others targeted by the boycott will need to carefully navigate public perception, regulatory expectations, and evolving consumer preferences.