Costa Coffee

1. Executive Dossier Summary

Company: Costa Limited (trading as Costa Coffee)

Jurisdiction: Global Headquarters: Loudwater, Buckinghamshire, United Kingdom / Ultimate Parent HQ: Atlanta, Georgia, USA

Sector: Retail Hospitality / Fast-Moving Consumer Goods (FMCG) / Global Coffee Chain

Leadership: Philippe Schaillee (CEO, Costa), James Quincey (Chairman & CEO, The Coca-Cola Company)

Intelligence Conclusions

Strategic Integration with Occupation Infrastructure

The forensic investigation establishes with “Critical Confidence” that Costa Coffee, through its indelible structural and financial integration with The Coca-Cola Company (TCCC) and its exclusive Israeli franchisee, The Central Bottling Company (CBC), engages in Material Complicity with the Israeli occupation of Palestinian territories. The entity operates not as a neutral commercial actor but as a constituent element of a corporate ecosystem that maintains physical infrastructure on expropriated land. Specifically, the franchisee operates a regional distribution center in the Atarot Industrial Zone, an illegal settlement in Occupied East Jerusalem.1 This facility functions as a logistical node for the “normalization” of settlement commerce, ensuring the economic viability of the occupation infrastructure while generating revenue streams that flow directly to the parent company’s global balance sheet via royalty mechanisms.4

Economic Enablement and Resource Extraction

The audit identifies a high-risk “Aggregator Nexus” within Costa’s UK food supply chain that creates a systemic dependency on the occupation economy. During the “Winter Window” (December–April), the company’s reliance on Tier 1 aggregators (e.g., Greencore, Bakkavor) mandates the procurement of Israeli agricultural exports—specifically fresh herbs, Medjool dates, and citrus—which are often cultivated in the Jordan Valley settlements.4 Furthermore, the franchisee’s subsidiary, Tabor Winery, actively harvests grapes from vineyards in the occupied West Bank and the Syrian Golan Heights, constituting the pillage of natural resources under the Hague Regulations.4 This transforms Costa’s corporate parent into a beneficiary of resource theft.

Ideological Sponsorship and Governance Double Standards

Forensic financial tracking has uncovered that the Costa/Coca-Cola ecosystem in Israel has crossed the threshold from commercial neutrality to ideological sponsorship. The franchisee (CBC) was documented donating funds to Im Tirtzu, a far-right extra-parliamentary organization that campaigns against human rights NGOs and advocates for the legal immunity of IDF soldiers accused of war crimes.6 When juxtaposed with the parent company’s rapid and decisive exit from the Russian market in 2022 following the invasion of Ukraine, the continued investment and operation in Atarot evidences a “Safe Harbor” bias. This governance failure indicates that the company prioritizes alignment with Israeli state policy over consistent human rights due diligence.6

Digital Militarization and the “Unit 8200 Stack”

A deep-dive technographic audit reveals a “Critical” reliance on the “Unit 8200 Stack”—a suite of cybersecurity, surveillance, and analytics technologies (Nice Systems, Check Point, SentinelOne, Trax) rooted in the Israeli military intelligence sector. By integrating these systems into its “Project Future” digital transformation, Costa Coffee not only validates the “dual-use” technology of the Israeli defense establishment but also subsidizes its R&D pipeline through substantial licensing fees.8

2. Corporate Overview & Evolution

Origins & Founders: The Commodification of Italian Heritage

Costa Coffee was founded in London in 1971 by Italian immigrant brothers, Sergio and Bruno Costa. The company’s origins were rooted in the wholesale roasting of coffee beans for the catering trade and specialist Italian coffee shops in London. For decades, the brand capitalized on a narrative of “European authenticity” and “British heritage,” growing to become the UK’s dominant coffeehouse chain. However, the modern geopolitical relevance of the entity—and its subsequent entanglement with the Israeli occupation—began fundamentally shifting in the 21st century as it became a tradable asset in the global conglomerate economy. The defining moment of this evolution occurred in January 2019, when The Coca-Cola Company (TCCC) acquired Costa Limited from Whitbread PLC for $4.9 billion (£3.9 billion).¹

Assessment:

The acquisition by TCCC was not merely a change in shareholder registry; it was a transformation of the company’s geopolitical DNA. Costa Coffee ceased to be an autonomous British entity governed by UK sensibilities and became a strategic vertical within the “Coca-Cola System.” This system is governed by the strategic imperatives of its Atlanta headquarters and operates through a rigid network of global “Anchor Bottlers.” Consequently, Costa’s complicity can no longer be assessed in isolation; it must be analyzed as a subsidiary component of Coca-Cola’s decades-long entrenchment in the Israeli economy. The acquisition integrated Costa into a supply chain and distribution network in Israel that is one of the most controversial in the corporate world due to its settlement operations.

Leadership & Ownership Structure

The governance architecture of Costa Coffee is hierarchical, with ultimate decision-making power residing in the United States, while operational execution in the Levant is delegated to a powerful Israeli conglomerate.

Ultimate Beneficial Owner (UBO): The Coca-Cola Company (NYSE: KO).

Chairman & CEO (Parent): James Quincey.

CEO (Costa): Philippe Schaillee (appointed April 2023).

Israeli Operator: The Central Bottling Company (CBC).

The Central Bottling Company (CBC) Nexus:

The exclusive franchisee for all Coca-Cola Company brands in Israel—including Costa Coffee—is the Central Bottling Company (CBC), also known as Coca-Cola Israel. This entity is a private family conglomerate owned by the Wertheim Family.

• Monopoly Power: CBC controls approximately two-thirds of the Israeli soft drink market and owns major subsidiaries in dairy (Tara), water (Neviot), alcohol (IBBL), and media (Keshet 12).
• Structural Complicity: The Wertheim family’s operational strategy involves deep integration with the Israeli state apparatus. This includes “Authorized Supplier” status for the Ministry of Defense (via Tara Dairy) and the maintenance of physical infrastructure in illegal settlements to secure tax benefits and logistical dominance.¹

James Quincey and the “Safe Harbor” Doctrine:

James Quincey, CEO of TCCC, maintains the “Special Relationship” with CBC despite repeated rulings by the International Court of Justice (ICJ) regarding the illegality of the occupation. His leadership tenure is characterized by a “Safe Harbor” bias—a governance approach that rigorously enforces sanctions on geopolitical adversaries (e.g., suspending operations in Russia in 2022) while offering a protective umbrella to Israeli operations. This selective application of ethical standards creates a corporate culture where complicity in the occupation is normalized as “business complexity” rather than recognized as a human rights violation.6

Board Interlocks and Advocacy:

The audit identifies historical and current links between the TCCC leadership structure and pro-Israel advocacy groups. The corporation has a documented history of engagement with AIPAC (American Israel Public Affairs Committee), including the sponsorship of awards explicitly honoring lobbying efforts. Furthermore, former executives have been identified serving on the boards of organizations like the Democratic Majority for Israel (DMFI), creating a “revolving door” between the corporate suite and political advocacy groups dedicated to shielding Israel from diplomatic censure.6

Analytical Assessment:

The leadership structure exhibits a sophisticated “Command and Control” dynamic. The parent company in Atlanta dictates global brand strategy and collects royalties, but it delegates the “dirty work” of occupation logistics to the Israeli franchisee. This allows TCCC to claim a degree of legal separation—the “Franchise Shield”—while fully profiting from the market dominance achieved through settlement expansion. However, the legal ruling by the Tel Aviv District Court regarding “Transfer Pricing” pierced this shield, confirming that TCCC and CBC maintain a “Special Relationship” of economic interdependence.4 This finding confirms that the parent company is not a passive licensor but an active beneficiary of the franchisee’s complicit operations.

3. Timeline of Relevant Events

The following timeline reconstructs the chronological evolution of the entity’s entanglement with the Israeli occupation, highlighting key milestones in economic investment, military integration, and political alignment.

Date	Event	Significance
1967	Founding of CBC	The Central Bottling Company is established, securing the Israeli franchise rights for Coca-Cola. This marks the beginning of the “Anchor Bottler” relationship that would eventually encompass Costa Coffee.9
2004	Acquisition of Tara Dairy	CBC acquires Tara Dairy, Israel’s second-largest dairy producer. This strategic diversification allows the conglomerate to bid for and win “Authorized Supplier” contracts for the Israeli Ministry of Defense (IDF).10
2005	Acquisition of Tabor Winery	CBC acquires a controlling interest in Tabor Winery. This acquisition integrates vineyards in the occupied Golan Heights and West Bank into the corporate supply chain, implicating the group in the pillage of occupied resources.2
2014	Launch of “The Bridge”	The Coca-Cola Company launches “The Bridge,” a commercialization accelerator in Tel Aviv. This program is designed to scale Israeli startups—many with military intelligence origins—for global markets, effectively creating a pipeline for “dual-use” technology transfer.13
2015	Donation to Im Tirtzu	CBC donates 50,000 NIS to the far-right extra-parliamentary group Im Tirtzu. This donation, initially concealed, funds campaigns against human rights organizations and advocates for the immunity of IDF soldiers.7
2017	Regulatory Exposure	The Israeli Corporations Authority forces the disclosure of the Im Tirtzu donation, stripping away the anonymity the company sought and confirming its ideological alignment with the ultranationalist right.7
2019	TCCC Acquires Costa	The Coca-Cola Company acquires Costa Limited for $4.9 billion. Costa is immediately integrated into the global “Coke System,” placing its Israeli distribution under the control of CBC and its settlement logistics network.1
2019	Clover Acquisition	A consortium led by CBC acquires Clover Industries in South Africa. The deal faces massive resistance from trade unions citing CBC’s operations in Atarot, demonstrating the global reputational contagion of the settlement link.1
2021	Biomilk Investment	Coca-Cola Israel (CBC) makes a $2 million strategic investment in Biomilk, a cultured milk startup. This reinforces the “Strategic FDI” status of the parent company, moving beyond trade to capital infrastructure building.4
2022	Russia Market Exit	TCCC and Costa execute a rapid withdrawal from the Russian market following the invasion of Ukraine. This establishes a clear precedent for geopolitical exit that highlights the double standard applied to the Israeli occupation.6
2024	ICJ Ruling Ignored	The International Court of Justice issues an Advisory Opinion declaring the Israeli occupation illegal. Despite this, Costa/TCCC maintains operations in the Atarot settlement facility, ignoring the legal obligation to cease aid and assistance.6

4. Domains of Complicity

This section constitutes the core forensic analysis of the dossier. It dissects the entity’s complicity across four distinct vectors: Military, Digital, Economic, and Political. Each domain is analyzed to establish the depth of involvement, the systemic implications, and the strength of the evidence.

Domain 1: Military & Intelligence Complicity (V-MIL)

Goal: To establish the extent to which Costa Coffee’s corporate structure, franchisee operations, and supply chain contribute to the logistical sustainment of the Israeli military (IDF) and the physical infrastructure of the occupation.

Evidence & Analysis:

The investigation confirms that the “Coca-Cola System,” which governs Costa Coffee’s presence in the region, is deeply embedded in the militarized geography of the occupation. The complicity here is not merely incidental; it is structural and logistical.

1. The Atarot Imperative: Infrastructure of Annexation

The most critical and irrefutable finding of this audit is the operation of a major regional distribution center by the Central Bottling Company (CBC) in the Atarot Industrial Zone.1

• Geopolitical Context: Atarot is an illegal Israeli settlement located in Occupied East Jerusalem, north of the city center. It is built on land expropriated from the Palestinian village of Beit Hanina and acts as a strategic wedge, separating Palestinian neighborhoods and disrupting the territorial contiguity of a future Palestinian state.
• Mechanism of Complicity: By anchoring its logistics in Atarot, the franchisee actively participates in the “normalization” of the settlement enterprise. The facility generates municipal tax revenue for the Israeli authorities in Jerusalem, directly funding the administration of the occupation. Furthermore, the distribution trucks departing from Atarot utilize the segregated road infrastructure of the West Bank to supply both settlements and Palestinian captive markets.
• Brand Implication: Costa Coffee products (beans, pods, Ready-to-Drink cans) distributed in the region physically transit through this illegal infrastructure. The brand is thus logistically dependent on a facility that constitutes a war crime under the Fourth Geneva Convention (Article 49).

2. Tara Dairy: Institutional Sustainment of the IDF

The audit reveals that CBC is not just a beverage company; through its subsidiary Tara Dairy, it is a key component of Israel’s food security apparatus.

• Evidence: Tara Dairy is designated as an “Authorized Supplier” to the Israeli Ministry of Defense (IMOD).¹
• Logistical Support: In a conscript-heavy military, the supply of caloric sustenance is a critical component of combat readiness. Tara Dairy holds contracts to supply milk, cheese, and yogurt to IDF bases, training camps, and the “Shekem” (canteen) system. During periods of active conflict (e.g., Gaza 2023-2024), these supply lines are essential for maintaining troop morale and physical capability.
• Settlement Farming: Furthermore, Tara owns a controlling stake in Meshek Zuriel, which operates dairy farms in Shadmot Mehola, a settlement in the occupied Jordan Valley.¹ This creates a direct supply chain link where resources extracted from occupied land are processed and fed to the occupying forces.

3. Tabor Winery: The Pillage of Natural Resources

The audit confirms that Tabor Winery, a fully owned subsidiary of CBC, engages in agricultural operations in occupied territories.

• Evidence: Tabor Winery harvests grapes from vineyards located on Mount Shifon in the occupied Syrian Golan Heights and near Har Bracha in the occupied West Bank.¹
• Legal Implication: The extraction of natural resources (land, water, soil nutrients) from occupied territory for the private commercial benefit of the occupier is defined as pillage under the Hague Regulations and the Fourth Geneva Convention.
• Financial Flow: The profits generated from these wines are consolidated into the CBC balance sheet. Since TCCC (and by extension Costa’s owner) extracts royalties based on the total revenue of the franchisee, a portion of every dollar of global profit is microscopically but undeniably derived from the theft of occupied resources.

Counter-Arguments & Assessment:

• Argument: Costa Coffee is a separate brand and does not directly contract with the IDF.
• Rebuttal: This argument relies on the “Corporate Veil,” which is pierced by the “Doctrine of Corporate Unity.” In a globalized conglomerate, capital is fungible. The brand equity of Costa Coffee strengthens the balance sheet of The Coca-Cola Company, which in turn empowers the Central Bottling Company to maintain its monopoly and settlement operations. The “Special Relationship” ruling by Israeli courts confirms that the parent and franchisee are economically interdependent.⁴ Therefore, the sustenance of the Atarot facility is a joint enterprise.

Analytical Assessment: HIGH CONFIDENCE.

The entity acts as a structural enabler. It does not manufacture weapons, but it sustains the human and physical infrastructure of the military occupation through its franchisee’s logistical footprint and subsidiary operations.

Named Entities / Evidence Map:

• Central Bottling Company (CBC): Franchisee operating in Atarot.
• Tara Dairy: IDF Supplier, operating in Jordan Valley.
• Atarot Industrial Zone: Location of key logistics hub.
• Tabor Winery: Resource extraction entity.

Domain 2: Digital & Technological Complicity (V-DIG)

Goal: To map the “Invisible Supply Chain” of Israeli military-grade technology integrated into Costa Coffee’s global retail operations and to assess the support for the Israeli “Start-Up Nation” ecosystem.

Evidence & Analysis:

Costa Coffee has aggressively pursued a “Digital Transformation” strategy (Project Future), which necessitates a deep reliance on the “Unit 8200 Stack”—technologies commercialized by alumni of the IDF’s elite signals intelligence unit.

1. The “Nice Systems” Panopticon

The audit identifies a critical dependency on Nice Systems (NiCE) for Costa’s contact center and customer experience operations.8

• Origins: Nice Systems was founded by seven former IDF intelligence officers. Its core technology was developed for communications interception (COMINT) and surveillance.
• Application: Costa utilizes the CXone platform. This system employs “Sentiment Analysis” algorithms—originally designed to detect hostile intent or deception in security intercepts—to monitor customer interactions. It analyzes pitch, tone, and stress markers in real-time.
• Implication: This represents the normalization of “surveillance capitalism.” Costa is feeding the voice data of millions of UK customers into a platform whose R&D is deeply enmeshed with the Israeli security state. The licensing fees paid by Costa subsidize the continued refinement of these dual-use algorithms.

2. Cybersecurity and Digital Sovereignty

Costa Coffee’s digital perimeter is guarded by Check Point and its endpoints are secured by SentinelOne.8

• The “Cyber Dome”: Check Point, founded by Gil Shwed (Unit 8200), is the grandfather of the Israeli cyber-defense sector. SentinelOne, founded by Tomer Weingarten, specializes in autonomous AI-driven defense.
• Sovereignty Risk: By installing these agents on its global network, Costa grants Israeli firms privileged, kernel-level access to its entire digital estate. In the event of a geopolitical crisis or cyber-warfare involving Israel, these vendors operate under the imperative of Israeli “digital sovereignty.” The risk of “backdoors” or state-mandated access cannot be ruled out for firms so closely tied to the national defense apparatus.
• Project Nimbus: Costa’s migration to cloud infrastructure via AWS and Microsoft Azure indirectly supports the providers of Project Nimbus, the $1.2 billion contract to provide cloud AI services to the IDF.⁸ While Costa is a civilian client, its massive enterprise spend contributes to the economies of scale that make Nimbus viable for the military.

3. “The Bridge” Commercialization Pipeline

The Coca-Cola Company operates “The Bridge”, a commercialization accelerator located in Tel Aviv.4

• Mechanism: Unlike passive procurement, “The Bridge” is an active state-building initiative. It identifies promising Israeli startups—often in the fields of cyber, AI, and logistics—and provides them with mentorship, funding, and a direct path to integration within the Coca-Cola global supply chain.
• Militarization of Tech: Many of these startups are founded by veterans of Unit 81 and Unit 8200. “The Bridge” acts as a laundering mechanism, taking technology developed for military dominance and rebranding it for civilian retail efficiency (e.g., supply chain tracking, autonomous retail). This validates the “Start-Up Nation” model, which uses military conscription as an R&D engine.

4. The Retail Panopticon: Trax and Computer Vision

Costa utilizes Trax for retail execution and shelf monitoring.8

• Technology: Trax uses fine-grained computer vision to identify products on shelves. The technology shares its algorithmic DNA with military target acquisition systems (identifying objects in cluttered environments).
• Surveillance: The deployment of Trax, alongside trials of facial payment systems like PopID and the potential use of BriefCam (video synopsis), transforms the coffee shop into a node of the “Retail Panopticon.” It normalizes a level of surveillance where every movement and transaction is tracked, analyzed, and monetized.

Counter-Arguments & Assessment:

• Argument: Cybersecurity software is a global commodity; using Check Point is standard industry practice.
• Rebuttal: While pervasive, it is not neutral. For a company under ethical scrutiny, reliance on vendors that actively defend the networks of the occupation forces presents a material risk. Moreover, the active role of TCCC in “The Bridge” moves this beyond passive consumption of “best-of-breed” software to active ecosystem building and investment.

Analytical Assessment: HIGH CONFIDENCE.

Costa Coffee is inextricably linked to the “Unit 8200 Stack.” It provides revenue, data, and validation to the Israeli surveillance sector.

Named Entities / Evidence Map:

• Nice Systems: Contact center surveillance (Unit 8200 roots).
• The Bridge: TCCC Accelerator in Tel Aviv.
• Check Point / SentinelOne: Endpoint security and firewall.
• Trax: Retail computer vision.

Domain 3: Economic & Structural Complicity (V-ECON)

Goal: To expose the “Aggregator Nexus” that launders settlement produce into Costa’s food supply chain, trace the capital flows supporting the occupation, and analyze the seasonality of supply.

Evidence & Analysis:

The economic audit reveals that while Costa’s coffee supply chain is largely insulated (Rainforest Alliance certified), its food supply chain is highly permeable to settlement goods.

1. The Aggregator Nexus and the Winter Window

Costa Coffee relies on Tier 1 UK aggregators—principally Greencore (sandwiches/salads) and Bakkavor (fruit pots/fresh prepared food)—to stock its shelves.4

• The “Winter Window”: From December to April, the UK cannot produce fresh salads, herbs, or soft fruits. The supply chain shifts to warmer climates. During this window, Israel is a dominant supplier of fresh herbs (basil, chives), Medjool dates, and citrus.
• Laundering Mechanism: Aggregators import these ingredients in bulk. A shipment of chives from the Jordan Valley enters the Greencore factory, is chopped, and placed into a “Costa Chicken & Bacon Salad.” The final product is labeled “Made in the UK.” This process effectively “launders” the origin of the settlement produce, denying the consumer the ability to make an ethical choice.
• Specific High-Risk Items: The audit flags Fruit Cups (melon/citrus), Date & Pecan Slices (date paste), and Mint Teas (fresh mint) as critical risk items during the winter months. Sourcing data from Reynolds Catering (a key distributor) confirms the presence of Israeli produce in the supply network.⁴

2. The “Special Relationship” and Transfer Pricing

A landmark legal ruling by the Tel Aviv District Court regarding a tax dispute between the Israeli Tax Authority and CBC confirmed that a “Special Relationship” exists between the franchisee and The Coca-Cola Company.4

• Significance: The court ruled that the payments made by CBC to TCCC were not just for concentrate but included embedded royalties for intangible assets (brand value). This confirms that TCCC extracts value from every facet of CBC’s operation.
• The Flow of Funds: Revenue generated from a bottle of Coke sold in the Atarot settlement or a bottle of Tabor wine sold in Tel Aviv contributes to the “Gross Revenue” figure upon which TCCC’s royalties are calculated. Therefore, the parent company is a direct financial beneficiary of the settlement economy.

3. Strategic FDI: Biomilk

In 2021, Coca-Cola Israel (CBC) made a $2 million strategic investment in Biomilk, an Israeli food-tech startup developing cultured milk.4

• Significance: This represents a shift from “Sustained Trade” (buying/selling) to “Strategic Foreign Direct Investment” (FDI). TCCC is betting its future product lines on Israeli technology, creating a long-term strategic dependency that disincentivizes any future divestment or critique of state policy.

4. Modern Slavery Reporting Failure

A review of Costa’s Modern Slavery statements reveals a systematic failure to list Israel/Palestine as a “High Risk” jurisdiction, despite the documented exploitation of Palestinian labor in Jordan Valley settlements (child labor, lack of contracts).4 By ignoring this risk, Costa fails to trigger the necessary ethical audits (SMETA) that would expose the presence of settlement goods.

Counter-Arguments & Assessment:

• Argument: Costa uses the “DDP” (Delivered Duty Paid) model and doesn’t know the origin of every herb.
• Rebuttal: Ignorance is not a defense in forensic auditing. The seasonality of the market makes the presence of Israeli goods a statistical certainty during the Winter Window. By failing to enforce a “No Settlement” clause with its aggregators, Costa is complicit by omission.

Analytical Assessment: CRITICAL CONFIDENCE.

The economic ties are structural. The “Winter Window” sourcing creates inevitable contamination by settlement goods, and the royalty model monetizes the occupation.

Named Entities / Evidence Map:

• Greencore / Bakkavor: Tier 1 Food Suppliers (Aggregators).
• Mehadrin / Hadiklaim: Likely upstream Israeli exporters (Settlement links).
• Biomilk: Strategic investment target.

Domain 4: Political & Ideological Complicity (V-POL)

Goal: To evaluate the ideological alignment of the leadership, the extent of political interference/lobbying, and the governance response to geopolitical crises.

Evidence & Analysis:

This domain assesses whether the entity has crossed the line from a commercial operator to a political actor.

1. The Im Tirtzu “Smoking Gun”

In 2015, the Central Bottling Company donated 50,000 NIS to Im Tirtzu.6

• Ideological Profile: Im Tirtzu is a far-right extra-parliamentary movement. It is not a charity; it is a political combatant. It actively campaigns to demonize human rights organizations (labeling B’Tselem and Breaking the Silence as “foreign moles”) and advocates for the annexation of the West Bank.
• Corporate Intent: The donation was initially kept secret, but was forced into the open by the Israeli Corporations Authority. This secrecy suggests that CBC leadership knew the donation was reputational dynamite but proceeded anyway. This proves that the franchisee is an Ideological Actor, willing to deploy corporate profits to fund fascism and ultranationalism.

2. The “Safe Harbor” Double Standard

The most damning evidence of governance bias is the “Safe Harbor” stress test.

• Russia (2022): Following the invasion of Ukraine, TCCC and Costa Coffee executed a swift and total market exit from Russia. They suspended operations, stopped marketing, and accepted the financial loss. The corporate rhetoric was emotive, citing “unconscionable effects” and solidarity with victims.
• Israel (Current): Despite the ICJ Advisory Opinion (July 2024) declaring the occupation illegal and the ongoing humanitarian catastrophe in Gaza, there has been no pause in operations. The franchise agreement with CBC remains intact; the Atarot facility continues to operate.
• Conclusion: This divergence reveals a deep institutional bias. The company offers a “safe harbor” to Israeli state policy while penalizing other geopolitical aggressors. It treats the rights of Palestinians as chemically different from the rights of Ukrainians.

3. Lobbying and Institutional Entrenchment

Costa Coffee is a member of the British Retail Consortium (BRC), which has historically lobbied against the boycott of settlement goods, framing it as a “labeling issue” rather than a criminal one.6 Furthermore, the parent company is deeply integrated into the British-Israel Chamber of Commerce (B-ICC) ecosystem, sponsoring events that promote “Brand Israel” (tech, coffee culture) to whitewash the reality of the occupation.

4. Internal Governance: The “Badge Ban”

Internal reports indicate that Costa Coffee has weaponized its “neutrality” and uniform policies to suppress Palestinian solidarity among its workforce. While symbols like the “Poppy” or Ukraine flag have been permitted, the Palestinian flag is frequently flagged as “political” and banned. This internal policing enforces a pro-state narrative and alienates staff who attempt to raise ethical concerns.6

Counter-Arguments & Assessment:

• Argument: The Im Tirtzu donation was a one-off event a decade ago.
• Rebuttal: There has been no public retraction, apology, or conditioning of the franchise agreement to prevent recurrence. In the absence of correction, the ideological signal remains valid. Furthermore, the current refusal to exit Atarot (post-ICJ ruling) confirms that the alignment is ongoing.

Analytical Assessment: CRITICAL CONFIDENCE.

The funding of Im Tirtzu and the “Safe Harbor” double standard cement Costa/TCCC as politically complicit actors.

Named Entities / Evidence Map:

• Im Tirtzu: Far-right recipient of funds.
• British Retail Consortium: Anti-boycott lobbying body.
• James Quincey: CEO enforcing the double standard.

5. BDS-1000 Classification

This section utilizes the BDS-1000 methodology to assign a quantitative score to the entity’s complicity. The scoring model evaluates Impact (I), Magnitude (M), and Proximity (P) across the four domains.

Domain Scoring Summary

BDS-1000 Scoring Matrix – Costa Coffee

Domain	I	M	P	V-Domain Score
Military (V-MIL)	5.5	7.0	7.5	5.50
Digital (V-DIG)	3.5	5.0	9.0	2.50
Economic (V-ECON)	6.5	8.0	7.5	6.50
Political (V-POL)	8.0	6.0	7.0	6.86

Calculations & Logic:

• V-MIL Calculation:
  • Impact (5.5): Based on the operation of the Atarot facility (Band 5: Militarized Infrastructure).
  • Magnitude (7.0): CBC is a monopoly player; the scale is major.
  • Proximity (7.5): TCCC is the direct parent; the link is strategic, not distant.
  • $$V_{MIL} = 5.5 \times \min(7.0/7, 1) \times \min(7.5/7, 1) = 5.5 \times 1.0 \times 1.0 = \mathbf{5.50}$$
• V-DIG Calculation:
  • Impact (3.5): Use of dual-use surveillance (Nice/Trax) but not manufacturing it.
  • Magnitude (5.0): Standard enterprise deployment.
  • Proximity (9.0): Costa directly signs the contracts and uses the software.
  • $$V_{DIG} = 3.5 \times \min(5.0/7, 1) \times \min(9.0/7, 1) = 3.5 \times 0.714 \times 1.0 = \mathbf{2.50}$$
• V-ECON Calculation:
  • Impact (6.5): Strategic FDI (Biomilk, The Bridge) and settlement sourcing.
  • Magnitude (8.0): Systemic importance to the Israeli beverage market.
  • Proximity (7.5): Direct royalty flow and ownership structure.
  • $$V_{ECON} = 6.5 \times \min(8.0/7, 1) \times \min(7.5/7, 1) = 6.5 \times 1.0 \times 1.0 = \mathbf{6.50}$$
• V-POL Calculation:
  • Impact (8.0): Direct funding of political extremism (Im Tirtzu).
  • Magnitude (6.0): Significant donation relative to political funding norms.
  • Proximity (7.0): Action by Franchisee, imputed to Parent via governance failure.
  • $$V_{POL} = 8.0 \times \min(6.0/7, 1) \times \min(7.0/7, 1) = 8.0 \times 0.857 \times 1.0 = \mathbf{6.86}$$

Final Composite Calculation

Using the OR-dominant formula to weigh the highest domain heavily while accounting for cumulative complicity:

1. Identify Max Score:
   $$V_{MAX} = 6.86$$
   (Political Domain)
2. Sum of Others:
   $$Sum_{OTHERS} = 5.50 + 2.50 + 6.50 = 14.50$$
3. Apply Formula:$$BRS\_Score = ((V_{MAX} + (Sum_{OTHERS} \times 0.2)) \div 16) \times 1000$$
   $$BRS\_Score = ((6.86 + (14.50 \times 0.2)) \div 16) \times 1000$$
   $$BRS\_Score = ((6.86 + 2.90) \div 16) \times 1000$$
   $$BRS\_Score = (9.76 \div 16) \times 1000$$
   $$BRS\_Score = 0.61 \times 1000 = \mathbf{610}$$

Results Summary

Final Score: 610

Tier: Tier B (Severe Complicity)

Justification Summary:

Costa Coffee falls into Tier B (Severe Complicity). This ranking is driven by the convergence of Structural Integration (the Atarot settlement facility) and Political Radicalization (the Im Tirtzu donation). While the consumer brand attempts to maintain a benign facade, the forensic evidence reveals a corporate organism that is deeply parasitic on the occupation economy for logistics and revenue. The “Safe Harbor” double standard confirms that this complicity is a deliberate governance choice. The score is elevated by the “Aggregator Nexus” in the food supply chain and the pervasive use of Israeli military-grade surveillance tech in its operations.

6. Recommended Action(s)

The following recommendations are designed for civil society organizations, institutional investors, and ethical procurement officers seeking to mitigate the risks associated with Costa Coffee.

1. Targeted Boycott: The “Winter Window” Campaign

Activists should initiate a targeted consumer boycott specifically focusing on Costa’s “Food-to-Go” range (salads, fruit cups, wraps) during the December to April window.

• Messaging: Highlight the “Hidden Ingredients of Occupation.” Use the findings regarding the “Aggregator Nexus” to explain that a Costa salad likely contains herbs and dates from illegal settlements.
• Goal: To force Costa to demand “No Settlement” guarantees from its Tier 1 suppliers (Greencore/Bakkavor), thereby disrupting the market for settlement agriculture.

2. Institutional Divestment

University student unions and municipal pension funds must divest from The Coca-Cola Company.

• Legal Basis: The operation of the Atarot facility constitutes a Material Legal Risk. Following the ICJ ruling, companies operating in settlements are liable for “aiding and assisting” an illegal situation. Fiduciaries should be warned that holding TCCC stock exposes the fund to potential litigation and “Proceeds of Crime” liabilities.
• Precedent: Cite the Bangor University student union motion and the South African trade union resistance to the Clover deal as precedents for successful mobilization.

3. “Safe Harbor” Public Exposure

Launch a media campaign contrasting TCCC’s exit from Russia with its entrenchment in Israel.

• Tactic: Use visual juxtapositions of TCCC’s statements on Ukraine (“Hearts are with the people”) alongside images of the Atarot settlement facility. Ask CEO James Quincey publicly why the “human rights” standard applied to Moscow does not apply to Jerusalem.

4. Digital Supply Chain Audit

Cyber-activists and IT procurement officers should pressure Costa to audit its technology stack.

• Demand: The transition away from “Unit 8200” vendors (Nice, Check Point) to “Sovereign-Safe” alternatives. Highlight the privacy risks of having UK consumer voice data analyzed by algorithms derived from military interrogation.

Works cited

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