Coca-Cola Fears Possible Damage from Sponsoring Russian Olympics and 2 Other Dow Movers to Watch
The Coca-Cola C0. (NYSE:KO): Current price $39.20
The highly controversial new anti-gay law in Russia is leading to unwanted complications for overseas sponsors of the Sochi Olympic Games set for next year, which include Coca-Cola and McDonald’s. The prospect of protests at Sochi against the repressive laws (and presumably the sponsors) is leaving them with a queasy feeling regarding potential damage to their public images.
The law disallows the distribution of information to minors that “promotes” same-sex relationships. Major sponsors like Coca-Cola and McDonald’s are worried about the risk of high-profile protests at the Games, and that demonstrations like that could draw attention to them for the wrong reasons and ignite calls for a boycott of their products, such as the one of Florida orange juice back in the 1970s.