NEW DELHI: The US-Iran war has not only forced a shortage of Diet Coke in India but also forced an increase in the price tag by more than 10 per cent. According to a report in Reuters, the supply chain bottleneck has forced the company to procure pricier, larger-sized cans from Southeast Asia.
In India, Coca-Cola offers Diet Coke mostly in cans, and the Strait of Hormuz is the major supply route for these aluminium cans and related raw materials that are brought to India. Due to the conflict that erupted in February, commercial traffic has been heavily disrupted. Following the collapse of an interim truce meant to end the Iran conflict, concerns have emerged that the disruption could widen further to block another sea route.
This hike is another instance of how the friction has forced global companies to alter their supply chains and increase prices in important markets.
Diet Coke in India costs Rs 40 for the 300-millilitre can. Now it will cost Rs 50 for the 330-ml cans, as the smaller ones are in tight supply. If calculated on a per-ml basis, the price increase translates to 13.6%.
Coca-Cola, which has not publicly unveiled pricing changes, did not respond to multiple requests for comment.
At least one of the company’s Indian bottlers has, for a limited time, started offering Diet Coke in small 200-ml glass bottles, though they are much more expensive than the canned drink, according to online listings and a third source with direct knowledge of the matter.
Coca-Cola and Pepsi consider India a major growth market, and, with the exception of Diet Coke, most of their drinks are sold in plastic and glass bottles and in 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 supply is not at risk because it is sold in both plastic bottles and cans.
In recent months, Indian pubs and social media influencers have spotted an opportunity to profit by organising parties that charge a $10 to $16 entry fee and offer access to Diet Coke, music, and alcohol.
Agencies