First came a shortage, then some parties celebrating whatever stock was available, and now the price is climbing — that's the story of how a war seemingly far away can impact something like Diet Coke in India.
It started when the US and Israel's war on Iran sparked the Diet Coke shortage in India as supplies of aluminum cans were squeezed when global trade routes were hit. That gave birth to a small, unique phenomenon of “Diet Coke parties” in one of the world's largest consumer markets.
Now, across India, Coca-Cola has hiked prices of Diet Coke, sold as healthier version and predominantly in aluminium cans, by more than 10% due to the ongoing Middle East/West Asia conflict. The supply chain remains choked.
What's the price of Diet Coke now?
Now the company has been procuring larger-sized cans from Southeast Asia that cost more and pour more, two people with direct knowledge of the matter told news agency Reuters. They declined to be named as the strategy is confidential.
- Diet Coke's most popular variant in India is the 300-millilitre can, priced at ₹40 (41 US cents).
- Coca-Cola has now rolled out 330-ml cans at ₹50.
- On a per-ml basis, the price increase translates to 13.6%.
- Diet Coke's most popular variant in India is the 300-millilitre can, priced at ₹40 (41 US cents).
- Coca-Cola has now rolled out 330-ml cans at ₹50.
- On a per-ml basis, the price increase translates to 13.6%.
At least one of the company's Indian bottlers has for a limited time started offering Diet Coke in smaller, 200-ml glass bottles, though they are much more expensive than the canned drink.
Coca-Cola, which has not publicly unveiled pricing changes, did not respond to multiple requests for comment.
How US-Iran war has an impact
At the heart of it, is the Strait of Hormuz, the critical supply route for these cans and related raw materials to travel to India, which has virtually closed again following the collapse of an interim truce meant to end the Iran conflict. There are fears the disruption could widen further to block another sea route on the Red Sea.
This is one example of how the conflict is still forcing global companies to alter their supply chains and increase prices in some of their most important consumer markets.
Coca-Cola and Pepsi count India as a major growth market, and with the exception of Diet Coke, most of their drinks are sold in plastic and glass bottles, as well as cans.
Diet Coke has become hugely popular in India, especially among health-conscious consumers. Coca-Cola also sells no-calorie Coke Zero in India, but its supplies are not at risk because it is sold both in plastic bottles and cans.
In recent months, Indian pubs and social media influencers spotted a chance to profit by organising parties that came with a ₹1,000 to ₹1600 entry fee and offered access to Diet Coke besides music and alcohol.