First, a shortage of Diet Coke in India was caused by the US-Israeli war on Iran, which squeezed aluminium can supplies. This led to an unprecedented surge of "Diet Coke parties" in one of the biggest consumer marketplaces in the world. However, now this carbonated beverage is getting more expensive.
Due to the prolonged Middle East turmoil, which has blocked its supply chain, Coca-Cola has increased the price of Diet Coke, which is mostly marketed in aluminium cans in India, by more than 10%, according to a report by Reuters. The corporation has been compelled to purchase more expensive, larger-sized cans from Southeast Asia.
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Following the collapse of an interim truce intended to settle the Iranian dispute, the Strait of Hormuz, a vital supply channel for these aluminium cans and related raw materials to transit to India, has effectively closed again, with commercial traffic severely hampered. There are worries that the disruption can get worse and obstruct another marine route.
Coke's price increase is an illustration of how the struggle continues to compel multinational corporations to modify their supply chains and raise prices in some of their most important consumer areas.
Diet Coke is especially susceptible to interruptions in India since, in contrast to most other markets, it is mostly sold in cans. The 300-millilitre can, which costs Rs 40, is the most widely used version in India.
According to the sources, Coca-Cola has recently introduced 330-ml Diet Coke cans in India for 50 Indian rupees because the smaller ones are hard to come by. The adjustment was made to account for increased costs.
The price increase is equivalent to 13.6% per millilitre.
According to internet postings and a third source with firsthand knowledge of the situation, at least one of the company's Indian bottlers has temporarily begun selling Diet Coke in tiny 200-ml glass bottles, even though these are significantly more costly than the canned beverage.
Except for Diet Coke, Coca-Cola and Pepsi consider India to be a significant growing market. The majority of their beverages are offered in cans and plastic and glass bottles.
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In India, Diet Coke has gained enormous popularity, particularly among those who are health-conscious. In India, Coca-Cola also sells its calorie-free Coke Zero, but as it is marketed in both plastic bottles and cans, its supplies are safe.
Indian bars and social media celebrities saw an opportunity to make money in recent months by hosting parties that charged $10 to $16 for admission and provided access to Diet Coke, music, and booze.
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