Babylon & Beyond

Observations from Iraq, Iran,
Israel, the Arab world and beyond

« Previous Post | Babylon & Beyond Home | Next Post »

EGYPT: Coca-Cola shuts Cairo operations, blames deteriorating security situation

January 31, 2011 | 10:31 am

Coke Atlanta-based Coca-Cola Co. announced Monday that it has shut its Cairo office because of the deteriorating security situation in Egypt after a week of anti-government protests.

The world's largest soft-drink maker won't resume operations in Egypt until the security situation improves, Coca-Cola spokesman Kenth Kaerhoeg said in a statement.

Coke's cessation of operations followed decisions by numerous other international companies to halt deliveries, shut plants or suspend services amid the disruptions caused by demonstrators demanding the resignation of President Hosni Mubarak.

German carmakers Volkswagen and Daimler and Japan's Nissan Motor Co. have held up deliveries and production at their factories in the country.

Foreign airlines serving Cairo, Alexandria and other major Egyptian cities have either suspended service to the restive country or drastically revised flight schedules to operate within the narrowing window left by an expanding curfew. The government has imposed a 3 p.m.-to-8 a.m. order against people or traffic on the streets.

The business disruptions are expected to worsen Tuesday, when protesters plan a million-man show of force behind their calls for Mubarak's ouster.

Foreign telecommunications companies stepping in to connect protesters to Internet

Egypt's police return; foreigners try to evacuate

Photos: Unrest in Egypt

-- Carol J. Williams

Photo: Coca Cola bottles are shown on the shelf of a New York store in 2006. Credit: Andrew Harrer / Bloomberg News.