Does Keurig support Israel? Business and political ties

The modern-day consumer is likely to desire a product that aligns with their ethics and belief systems. Not only are the needs and preferences of people limited to what they need and want to consume, but they are also interested in the ethical and social consequences of the consumption. This holds, particularly when companies are involved in the global marketplace. There is unknown geopolitical baggage attached to their business operations. An example that is easily cited is that of Keurig. The invention of one-serving pods and other novel brewing systems, which enabled their easy use, is largely attributed to Keurig. Its coffee systems have become integral to homes and offices. Its coffee innovation and trusted reputation innovation have garnered global attention. 

However, the reputation of such companies comes with certain challenges when they expand internationally; the scrutiny surrounding their geopolitical association and business practices is magnified. Many people are concerned about their political affiliations. The case of Israel is often cited in such debates

Keurig’s corporate ownership and structure

Kept open with the biopic in mind, the ownership of Keurig traces policies that could eventually shape its global position. Since 2018, Keurig has been part of Keurig Dr Pepper, a company formed by merging Keurig and the Dr Pepper Snapple Group, McGandwin the Coffee Machine company, Keurig Dr. Pepper (KDP), as per the merger in which Snapple was included. 

The Keurig Dr Pepper company office is located in Burlington, Massachusetts, and trades publicly listed on NASDAQ with the trading code KDP. They also possess other brands that range from beverages, Dr. Pepper Snapple, Green Mountain Coffee Roasters, and many other brands.

The corporate governance documents, annual reports, and information that are accessible to shareholders emphasize shareholder value, market growth, environmental sustainability, and social responsibility, but are not normally referenced to guide individual countries on a political level.

Credit: REUTERS/Mario Anzuoni

Keurig’s business relationships with Israel

According to the existing publicly accessible distribution and retail reports:

• All in all, the Keurig gadgets, including machines and pods, are sold in many nations all over the world, including North America and even some regions in Europe and Asia.
• Israeli retailers are stocking Keurig coffee machines and pods, which can be unpredictable due to the import restrictions, market size, and demand.
• Israel is not a highly featured market on the site or by distributors, but third-party sellers and importers are selling Keurig products in Israel.

1. Does Keurig have operations or manufacturing in Israel?

• None of Keurig’s publicly known manufacturing plants or business operations is located in Israel.
• Keurig devices and pods are primarily manufactured in North America and Asia.
• There are no known Israeli subsidiaries or direct business investments by Keurig Dr. Pepper within Israel.

2. Does Keurig source raw materials from Israel?

• Keurig sources much of its coffee from coffee-growing regions such as Latin America, Africa, and Asia.
• Coffee itself is not grown in Israel, so there is no coffee sourced from Israel.
• Keurig’s suppliers for other components, plastic, and electronic parts, are global but do not report Israel prominently as a source country.
• No public disclosures show direct sourcing from Israel-based suppliers.

Credit: Justin Sullivan / Getty Images

Has Keurig made any political statements or donations supporting Israel?

Large companies might occasionally contribute to politics or publish studies on the geopolitical situation. Neither is publicly recorded, nor is there credible evidence that Keurig or Keurig Dr. Pepper went to the level of making formal political contributions to Israeli causes or political action committees. The social responsibility and communications of the company are based on sustainability (e.g., recyclable pods), diversity and inclusion, and environmental targets, and do not include any overt political statements about Israel. In its external reporting, Keurig has been mostly non-partisan regarding issues of international concern.

Corporate social responsibility and ethical business.

• Keurig is a company with corporate social responsibility centered on environmental sustainability, recycling programs, sourcing in an ethical manner, and community involvement.
• Keurig focuses on the Certified Ethical Coffee programs, including Rainforest Alliance Certifiedtm and Fair Trade, to source coffee.
• So far, geopolitical activism and regional political support, including Israel, have not been in the remit of CSR initiatives.
• The BDS movement wants to bully companies and governments not to boycott Israeli goods and firms operating in Israeli settlements.
• Pro-Palestinian activists have pressured other companies to change their corporate policies so that they will not support Israel.
• It has also prompted more public arguments on whether companies such as Keurig should disengage or discontinue business operations with Israel.

Has Keurig been affected by BDS-related actions?

Keurig has a platform featuring Israeli coffee brands that are compatible with its K-Cup system, like Cafe Joe USA, which sources its beans in Israel but does not claim to be an Israeli company or to operate there. The BDS movement goes after certain companies that have direct roles or complicity in Israeli state activities. Keurig is not a BDS boycott or divestment high priority on the list.

Activists have encouraged the boycotting of a large number of companies due to perceived complicity with Israeli policies, but any formal business relationship with Israel, which would lead to corporate policy reactions, has not been confirmed by Keurig. Keurig has not acted upon boycott demands about BDS by saying anything or changing its presence in the market. This implies that the reality that Keurig indirectly deals in Israeli coffee products has caused the activist boycotts, but these have not, as yet, led to official changes in the corporate policies and operating strategies of the corporation.

Consumer activism and public perception regarding Keurig & Israel

Consumers are demanding more and more information on the geopolitical or ethical effects of their purchases. This fuels:

• A call to put on the labels that businesses or other financial entities of the Israeli government do business with or finance them.
• Social media campaigns encouraging or discouraging the sale of Keurig products based on an apparent geopolitical position.
• Other consumers buy based on their political or moral opinions and shun those with opposing positions.
• Keurig has been drawn into these debates in an indirect manner as a result of its international footprint and does not present a clear narrative of corporate activity that would suggest that it sides with Israel.

Credit: Jonathan Weiss/Shutterstock

Does Keurig support Israel?

According to publicly available information:

• Keurig does not have direct operations or major investments in Israel, and it sells products through the country’s importers and retailers.
• Keurig is not importing coffee or materials to Israel.
• Keurig or its parent company does not take any specific political action, make any statement publicly, or make any donations that directly advocate policies by the Israeli government.
• Keurig has a politically neutral public image dedicated to sustainable business.
• The firm has never been directly implicated in significant geopolitical scandals involving Israel; however, it operates within an environment in which consumer activism has the potential to influence minds.
• Thus, the direct support of Israel is neither a form of politics nor business, which is actively or explicitly supported by Keurig in the context of its general commercial activities related to retail positions in the Israeli market.

Consumers in a more globalized world tend to examine the political and ethical footprint of the brands they purchase. In the case of Keurig, although the company does business internationally and markets its products in Israel, it is a company whose main core activity is to provide coffee products without much political or geopolitical activism.

In this way, the question “Does Keurig support Israel? Whether the company openly supports or financially approves of the Israeli government or its policies, the answer seems to be no. Keurig is first and foremost a global beverage brand with no overt political connections in its corporate stewardship.

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.

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