Brands
Diet Coke rolls out bigger cans, heftier price tags as Iran war disrupts supplies
Coca-Cola switches to larger imported cans after supply chain disruptions push up costs
New Delhi: India’s favourite fizz has lost a little sparkle, at least on the price tag. The Coca-Cola Company has raised the price of Diet Coke in India by more than 10 per cent, as supply chain disruptions linked to the ongoing Middle East conflict have made aluminium cans harder and more expensive to source.
According to Reuters, the disruption has forced Coca-Cola to temporarily replace its popular 300 ml cans with larger 330 ml cans imported from Southeast Asia, increasing packaging costs and prompting the price hike.
India is particularly vulnerable because Diet Coke is sold predominantly in aluminium cans, unlike most other Coca-Cola beverages, which are widely available in plastic and glass bottles.
The latest disruption stems from renewed tensions in the Middle East after the collapse of an interim truce related to the Iran conflict. Commercial shipping through the Strait of Hormuz, a key route for aluminium cans and raw materials heading to India, has again been severely disrupted, squeezing supplies.
The company’s best-selling 300 ml Diet Coke can, previously priced at Rs 40, has been replaced in many markets with a 330 ml version priced at Rs 50. On a per millilitre basis, that works out to a price increase of around 13.6 per cent.
To ease shortages, at least one Coca-Cola bottler in India has also started offering Diet Coke in 200 ml glass bottles for a limited period, although they are priced significantly higher than the canned version, according to online listings and people familiar with the matter.
The shortages follow an earlier wave of supply disruptions that sparked unusual “Diet Coke parties” across India, where pubs and social media influencers charged entry fees ranging from USD 10 to USD 16 for events offering access to the hard-to-find drink alongside music and alcohol.
While Diet Coke has been affected, supplies of Coca-Cola Zero Sugar remain stable because it is sold in both bottles and cans, reducing its dependence on aluminium packaging.
India remains a key growth market for both The Coca-Cola Company and PepsiCo. But the latest price increase underscores how geopolitical tensions can ripple far beyond conflict zones, reaching supermarket shelves and consumers’ shopping baskets.
