Diet Coke Price Hike in India: Supply Chain Issues Drive Costs Up

Your go-to Diet Coke just got pricier in India, with cans now costing more due to global supply chain issues impacting aluminum availability. This is a noticeable jump for fans of the fizzy drink.

The New Price Tag

Fans of Diet Coke in India will now find their favorite 300-ml can, previously priced at Rs 40, replaced. The new 330-ml cans are retailing for Rs 50.

This translates to an approximate 13.6% increase on a per-milliliter basis. Coca-Cola has not officially announced these price adjustments.

Global Ripples Affecting Your Drink

The core issue stems from disruptions in the aluminum can supply chain. This is linked to the ongoing US-Israeli war on Iran.

The conflict has made it harder to get aluminum cans, forcing Coca-Cola to source more expensive, larger cans from Southeast Asia.

The critical Strait of Hormuz, a key shipping lane for aluminum and raw materials destined for India, has seen commercial traffic disrupted. This follows the collapse of an interim truce in the Iran conflict.

What This Means for Shoppers

Diet Coke is especially impacted in India because it is predominantly sold in aluminum cans, unlike many other global markets.

The scarcity of Diet Coke had previously led to consumers organizing “Diet Coke parties” as stock dwindled.

As a temporary fix, at least one of Coca-Cola’s Indian bottlers has started offering Diet Coke in 200-ml glass bottles. These glass bottles are considerably more expensive than the canned version.

Interestingly, Coke Zero is unlikely to face similar supply challenges. It is sold in both plastic bottles and aluminum cans, offering more flexibility.

Domestic Production Challenges

Even before the recent Middle East issues, sourcing aluminum cans was tough for beverage manufacturers due to strict import quality control norms. The government extended the deadline for these norms in January.

Domestic production of 500-ml aluminum cans also faced hurdles due to LPG shortages. However, gas supply to manufacturing units is now gradually being restored.

This restoration, coupled with an increase in specialized aluminum sheet output by Hindalco, is anticipated to improve domestic can production.

For Indian consumers, this means adapting to higher prices for their preferred Diet Coke or exploring other options. The global supply chain woes are clearly making their way into our shopping carts.