The ongoing Iran conflict is now being felt in an unexpected corner of India's consumer market. After triggering a shortage of Diet Coke in the country, the disruption has also forced Coca-Cola to increase prices and introduce larger cans as it struggles with supply chain challenges.
The company has increased the price of Diet Coke by more than 10% in India after disruptions in the supply of aluminium cans. According to people with direct knowledge of the matter, Coca-Cola has started sourcing more expensive 330-ml cans from Southeast Asia because supplies of its regular 300-ml cans have been affected. The company has not publicly announced the price revision and did not respond to requests for comment.
Conflict hits the can supply
The disruption is linked to the Strait of Hormuz, a crucial shipping route for aluminium cans and related raw materials reaching India. Commercial traffic through the route has been heavily disrupted following the collapse of an interim truce in the Iran conflict, raising concerns that supply issues could continue or even spread to other shipping routes, Reuters reports.
The development highlights how geopolitical conflicts continue to reshape global supply chains long after the initial headlines fade. Even products as commonplace as a can of Diet Coke are now feeling the impact of international tensions.
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Bigger can, higher bill
In India, Diet Coke is sold mainly in aluminium cans, unlike many other markets where bottles dominate. Its most popular variant has been the 300-ml can priced at ₹40. However, Coca-Cola has now introduced a 330-ml can priced at ₹50 because of the shortage of smaller cans and the higher procurement cost, sources said.
On a per-millilitre basis, the new pricing works out to a 13.6% increase. At least one of Coca-Cola's Indian bottlers has also begun offering Diet Coke in 200-ml glass bottles for a limited period. According to online listings and a source familiar with the matter, these bottles are considerably more expensive than the canned version.
India remains a key market
India continues to be a major growth market for both Coca-Cola and Pepsi. While most of their beverages are sold in plastic and glass bottles, as well as cans, Diet Coke is more vulnerable because it is predominantly sold in aluminium cans. Coca-Cola's Coke Zero has not faced similar supply concerns because it is available in both plastic bottles and cans.
The shortage has also created an unusual consumer trend. In recent months, pubs and social media influencers have organised "Diet Coke parties", charging entry fees ranging from $10 to $16 and offering guests access to the drink along with music and alcohol. What began as a supply chain disruption has unexpectedly turned Diet Coke into a niche attraction, underscoring how scarcity can transform an everyday product into a lifestyle statement.
