Caught amidst tense India-Canada ties, McCain, Tim Horton's face the heat

Canada-based companies such as café chain Tim Hortons and frozen food company McCain are facing boycott calls on social media, according to a report by The Economic Times (ET). Meanwhile, Ticket booking platform BookMyShow cancelled Canada-based rapper Shubhneet Singh's tour on Wednesday.

These developments come after diplomatic ties between the two countries turned sour after Canadian Prime Minister Justin Trudeau said that Canada was investigating the involvement of Indian government agents in the murder of Khalistani separatist Hardeep Singh Nijjar in Surrey, BC, earlier this year.

The Indian government has denied any role in the murder and expelled a diplomat in retaliation.

"Singer Shubhneet Singh's Still Rollin Tour for India stands cancelled. To that end, BookMyShow has initiated a complete refund of the ticket amount for all consumers," BookMyShow said on X on Wednesday. "The refund will be reflected within 7-10 working days in the customer's source account of the original transaction," the company added.

Wearables company boAt cancelled its sponsorship of the Canadian rapper's tour on Tuesday. In a statement posted on social media platform X (formerly Twitter), the brand said, "At boAt, while our commitment to the incredible music community runs deep, we are first and foremost a true Indian brand."

In an email, McCain's local office told ET that it won't comment on the matter.

According to experts, such firms face a difficult situation and will have to walk a fine line amid escalating tensions.

Sandeep Goyal, chairman of ad agency Rediffusion, told ET that these brands can't be seen taking sides. McCain and Tim Hortons are big players in Canada, and for them to take any stance about the parent company is not doable. The prudent option for the affected brands would be to maintain a low profile, as they wouldn't want to be caught in the political crossfire. 

Executives said the effect on business could be short-term, but it can't be underestimated given the social media effect. 

Lloyd Mathias, business strategist, said that with firms operating across national boundaries, geopolitical forces that affect business are difficult to ignore.

The backlash against brands could subside in the near term. Mathias added that the border clashes between India and China saw many calls for a boycott of Chinese goods in India, but the real impact on the ground was minimal.