Indian Cities Face Shortage Of Diet Coke As Iran War Disrupts Supply Of Aluminium Cans

(MENAFN- Live Mint) Diet Coke has emerged as an unlikely casualty of the supply chain disruptions caused by the war in West Asia, with several Indian cities reporting a shortage. Shipments of aluminium cans have been delayed since last month due to the blockade of the Strait of Hormuz. The Gulf accounts for 9% of the global aluminium production.

It is important to note that while soft drinks are sold in India in plastic bottles and cans, the sugar-free Diet Coke is sold only in cans. The supply gap has hit Indian cities when sweltering heat is driving the sales of soft drinks. The shortage in supply was first reported in Mumbai, and has since escalated to Bengaluru, Pune and parts of Delhi-NCR.

Diet Coke Can-Not

Two Coca-Cola distributors told Reuters on 22 April that the company notified them that it was rationing supplies or not fulfilling some orders due to a can shortage caused by the war. However, Coca-Cola declined to respond.

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To add to the woes, the production of cans and bottles in India has also become more expensive because of energy shortage. "There is some production happening, but it's being rationed as the company can't meet all the demand," an industry executive told Reuters.

A grocer in northern Uttar ​Pradesh said orders for Diet Coke had ​been delayed. "Earlier, ⁠orders were delivered within five-six hours. The company is now pushing for Coke Zero which comes in a plastic bottle and is very reasonable when compared to other products," he told the news agency.

According to The Economic Times, this situation is compelling companies to import aluminium cans from the UAE, Sri Lanka and Southeast Asia that are at least 25-30% costlier. These markets constitute a third of aluminium can supplies to India.

Diet Coke Can

The shortage is also caused by the steep surge in sales of diet or sugar-free soft drinks - which have reportedly doubled in the last one year - leading to the supply outpacing the demand.

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The drinks giant reported sales of $533 million in 2024-25, its highest since 2021. Among these, sugar-free products such as Diet Coke are a growth category: India's reduced-sugar food and beverage market will be worth $4.7 billion by 2030, as per Grand View Research cited by Reuters.

With some stocks still available on quick commerce platforms, people are reportedly resorting to bulk buying. Meanwhile, posts like 'Diet Coke Missing' have gone viral on social media platforms.

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