Why Co-op is Dropping 17 Countries from Sourcing Network?
As part of its ‘Hate Divides Communities, Co-operation Builds Them’ campaign, starting 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 dedication to this ban sees a list of around 100 items that are directly affected by this change, including ingredients for its own-label products alongside whole items such as Russian Vodka and Israeli carrots.
This aligns with the broader trend of retailers pausing suppliers based on consumer feedback regarding sustainability, political movements and ethical practices.
Criteria and countries
Through the Co-op Group Board and feedback from Co-op member surveys, it was decided that the Co-op should advocate for peace.
This move includes developing a sourcing policy that aligns with co-operative values which include: democracy, equality and solidarity.
- 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 comments: “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
Co-op has supported Fairtrade for 30 years, working to make a difference to farmers, workers and their communities around the world, through campaigning for fair prices, better working conditions and more sustainable terms of trade.
“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
Over recent years, several companies have pulled out of trade with countries on Co-op’s list, particularly Russia and Israel. Some, however, have faced backlash for not acting sooner.
In 2022, Carlsberg announced its decision to leave the Russian market. Due to various legal disputes, the company was unable to close business 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.
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