The ongoing Middle East conflict has disrupted Coca-Cola’s supply chain in India, forcing the company to raise prices for Diet Coke by more than 10% after shortages of aluminium cans triggered by the US-Israeli war on Iran.
According to two people with direct knowledge of the matter, Coca-Cola has increased the price of Diet Coke, which is sold predominantly in aluminium cans in India, after supply disruptions forced it to source larger, more expensive cans from Southeast Asia. The sources declined to be identified because the company’s pricing strategy is confidential.
The latest increase follows an earlier shortage of Diet Coke in India, when disruptions linked to the conflict squeezed supplies of aluminium cans, prompting an unusual surge in demand and even inspiring “Diet Coke parties” across the country.
The renewed disruption comes as commercial shipping through the Strait of Hormuz—a critical route for aluminium cans and related raw materials destined for India—has been severely affected following the collapse of an interim truce aimed at ending the Iran conflict. Concerns remain that the disruption could spread to other key shipping routes.
The supply chain challenges highlight how the conflict continues to affect multinational companies, forcing them to restructure logistics operations and pass higher costs on to consumers in major markets.
India is particularly vulnerable because, unlike most other countries, Diet Coke is sold mainly in aluminium cans. Its most popular 300-millilitre can has traditionally retailed for 40 rupees (about 41 US cents).
To offset higher procurement costs, Coca-Cola has introduced larger 330-millilitre cans priced at 50 rupees as supplies of the smaller cans remain constrained, the sources said. On a per-millilitre basis, the new pricing represents an increase of about 13.6%.
Coca-Cola has not publicly announced the pricing changes and did not respond to requests for comment.
The supply squeeze has also prompted at least one of Coca-Cola’s Indian bottlers to temporarily introduce Diet Coke in 200-millilitre glass bottles, although online listings and a third source familiar with the matter indicate the bottles are considerably more expensive than the canned version.
India remains a key growth market for both Coca-Cola and Pepsi, with most of their beverages sold in plastic and glass bottles as well as cans. However, Diet Coke’s reliance on aluminium cans has made it especially susceptible to the current supply disruptions.
While Diet Coke has gained a strong following among health-conscious consumers in India, Coca-Cola’s Coke Zero has avoided similar shortages because it is available in both plastic bottles and aluminium cans.
The scarcity has also created an unexpected business opportunity. In recent months, pubs and social media influencers have organised “Diet Coke parties,” charging entry fees of between $10 and $16 while offering guests access to the sought-after soft drink alongside music and alcoholic beverages.
Boluwatife Enome
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