The ongoing conflict in the Middle East is beginning to reshape beverage supply chains in India, with Coca-Cola raising the price of Diet Coke by more than 10% after disruptions in aluminium can supplies forced the company to source larger, costlier cans from Southeast Asia.
According to people familiar with the matter, the disruption stems from renewed shipping challenges through the Strait of Hormuz, a key trade route for aluminium cans and related raw materials destined for India. With commercial traffic severely affected, Coca-Cola has reportedly faced shortages of its regular 300-ml Diet Coke cans, prompting a shift to 330-ml imported cans.
The new 330-ml cans are being sold at ₹50, compared with ₹40 for the earlier 300-ml format, translating to a 13.6% increase on a per-millilitre basis. While the company has not officially announced the price revision, the move reflects rising logistics and sourcing costs linked to the geopolitical crisis.
India presents a unique challenge for Coca-Cola because Diet Coke is predominantly sold in aluminium cans, unlike most of its other beverages, which are available in plastic and glass bottles as well. This has made the brand particularly vulnerable to disruptions in the global aluminium supply chain.
To ease supply constraints, at least one Coca-Cola bottler has also introduced 200-ml glass bottles of Diet Coke in select markets. However, these variants are priced at a premium compared with the canned format.
The development highlights how geopolitical tensions are increasingly influencing consumer goods markets, forcing multinational companies to rework sourcing strategies and pass on higher costs to consumers.
India remains one of Coca-Cola’s most important growth markets, with demand for low- and no-sugar beverages continuing to rise. While Coke Zero has remained largely unaffected due to its availability in multiple packaging formats, Diet Coke’s heavy reliance on aluminium cans has exposed it to the ongoing supply chain disruptions.
The shortages have also fuelled unusual consumer behaviour in recent months, with Diet Coke becoming scarce in some markets and even featuring as the attraction at themed events organised by pubs and influencers, underscoring the brand’s growing popularity among India’s health-conscious consumers.