Mumbai, India – If you have noticed that your can of Diet Coke is costing you more, you are not mistaken. Coca-Cola has increased the price of the popular zero-calorie soft drink in India by more than 10%, a move driven not by domestic factors but by a global supply chain crisis. According to a Reuters report, the ongoing conflict in the Middle East has disrupted the supply of aluminium cans, forcing the company to source expensive alternatives and pass the cost onto consumers.
The root of the problem lies in the Strait of Hormuz, a critical shipping route for aluminium cans and raw materials bound for India. Commercial shipping through this route has been severely affected following the collapse of an interim truce in the Iran conflict, with concerns the disruption could spread to other key sea lanes. As supplies tightened, Coca-Cola was forced to look for alternative sources, primarily from Southeast Asia, significantly increasing its procurement costs.
In India, Diet Coke is predominantly sold in aluminium cans, unlike many other markets where it is available in multiple packaging formats. The company’s most popular 300 ml can, which was priced at ₹40, became increasingly difficult to source. To manage the shortage, Coca-Cola has introduced a 330 ml can priced at ₹50. While the can is larger, the per-millilitre cost has increased by approximately 13.6%, representing a substantial price hike for consumers. The company has not officially announced these pricing changes.
Diet Coke has been disproportionately affected because of its reliance on can packaging. In contrast, Coke Zero, which is available in both plastic bottles and cans, has not experienced the same supply constraints. Additionally, most other Coca-Cola and Pepsi drinks sold in India are packaged in plastic or glass bottles, making them less vulnerable to the current aluminium shortage. At least one of Coca-Cola’s Indian bottlers has also started offering Diet Coke in 200 ml glass bottles for a limited period, though these are priced higher than the canned version. The development highlights how geopolitical tensions can have a direct and swift impact on everyday consumer goods.
