Iran & Israel: Why Co-op has Changed its Sourcing Network
As part of its ‘Hate Divides Communities, Co-operation Builds Them’ campaign, beginning in June 2025, Co-op has begun the process of cutting ties with supplier countries.
Several of the countries that are being phased out of Co-op’s operations have seen a significant reduction in trade over recent years due to challenges from conflict or human rights violations.
Co-op's strategy affects approximately 100 items across its supply chain, including components for its own-label products and specific goods like Russian Vodka and Israeli carrots.
This move resonates with broader industry trends where retailers are adjusting their supply networks to reflect ethical consumerism and sustainable practices, similar to initiatives like Sainsbury's ethical cocoa sourcing.
Criteria and countries
Co-op's decision includes developing a sourcing policy that aligns with co-operative values which include: democracy, equality and solidarity.
The decision was made based on feedback from the Co-op Group Board and feedback from Co-op member surveys.
- There has been an agreement across respected assessments that there has been repeated behaviour which can be described as large scale human rights abuses or international law violations
- The actions taken by the Co-op would alleviate suffering and make a difference to those affected, either directly or indirectly
- The actions taken by the Co-op would not negatively impact the Co-op’s integrity or go against co-operative values and principles
The full list of countries that are being phased out is as follows: Afghanistan, Belarus, Central African Republic, Democratic People’s Republic of Korea (North Korea), Democratic Republic of Congo (DRC), Haiti, Iran, Israel, Libya, Mali, Myanmar, Russia, Somalia, South Sudan, Sudan, Syria and Yemen.
Debbie White, Chair of the Co-op Group Board, says: “This policy, which has been developed over the past year as a part of our 'Hate Divides Communities, Co-operation Builds Them’ campaign, is a clear demonstration of our co-operative values in action, where the voices of our members have been listened to and then acted upon."
A history of fairness
Building on a three-decade commitment to Fairtrade, Co-op has consistently championed fair pricing, improved working conditions and sustainable trade practices.
“As a business, we have a long-standing legacy of doing the right thing, supporting Fairtrade and championing ethical sourcing and this policy is a natural progression of this,” says Debbie.
“Our Hate Divides Communities, Co-operation Builds Them campaign has once again positioned our Co-op with those who advocate for and build peace.”
Since announcing the decision to stop sourcing from its countries of concern, Co-op has received a significant amount of support from consumers, and a call to action for other retailers has since followed suit.
Consumer demand
Consumer demand is increasingly influencing corporate strategies, as evidenced by similar market shifts.
Legal challenges delayed Carlsberg's 2022 decision to exit from the Russian market until 2024.
In 2021, Ben & Jerry’s announced its desire to stop selling its ice cream in Israel, but its parent company, Unilever, prevented the termination.
Despite Ben & Jerry’s vocal boycott, Unilever sold B&J Israel to an Israeli distributor, meaning sales are still occurring.
Between 2017 and 2022, brands in the frozen dessert industry which included a “plant based” claim saw a 4.1% higher growth rate than similar products that were not plant-based, showing a demand for more sustainable products.
Vocation Brewery recently defended its continuous trade with Israel, only to face consumer backlash.
Upon this feedback, Vocation Brewery has “decided to cease exports of our beer to Israel with immediate effect".
More companies are moving towards environmentally or ethically sustainable products, with a 2020 McKinsey report showing that “more than 60% of respondents said they’d pay more for a product with sustainable packaging".
The actions of Co-op and other consumer brands has shown that consumer demand lies in ethical sourcing and points to a more sustainable future.
