Diet Coke Faces Shortage in India Amid Aluminium Supply Crisis Linked to Iran Conflict
Fizz Crisis: Diet Coke Vanishes As Iran War Squeezes Aluminium Supply
News 18
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Diet Coke is experiencing significant shortages in several Indian cities due to a severe aluminium can supply crisis exacerbated by ongoing tensions involving Iran. The demand for low- and no-sugar beverages has surged, further straining supplies, leading retailers to report rapid stock-outs.
- 01Diet Coke shortages are reported across major Indian cities due to aluminium can supply issues.
- 02The crisis is intensified by a surge in demand for low- and no-sugar beverages.
- 03Companies are importing aluminium cans at 25–30% higher costs to mitigate the shortage.
- 04Major manufacturers are operating near capacity, limiting domestic production expansion.
- 05Industry bodies are urging the government to suspend import duties on packaging materials.
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Diet Coke has become a casualty of supply chain disruptions linked to the ongoing tensions involving Iran, resulting in stock-outs across several Indian cities, including Mumbai, Bengaluru, Pune, and parts of Delhi-NCR. Retailers report that shelves are emptied as soon as limited supplies arrive, with grocery stores in Delhi-NCR experiencing acute shortages. The unique packaging of Diet Coke, which is predominantly sold in aluminium cans, makes it particularly vulnerable to supply disruptions compared to other soft drinks available in PET bottles or glass. The surge in demand for low- and no-sugar beverages has further intensified the shortage, with sales of such drinks doubling over the past year. To address the crisis, companies are increasingly importing aluminium cans from regions like the UAE and Southeast Asia, although these imports come at a 25–30% higher cost. Domestic manufacturers, such as Ball Beverage Packaging and Canpack, are operating near full capacity, and establishing new production lines could take up to a year. Rising costs for packaging materials, including a 20% increase in glass bottle prices and nearly doubling of paper carton prices, have compounded the issue. Industry bodies have reached out to the government for a temporary suspension of import duties on glass bottles and aluminium cans to alleviate the situation. Despite robust demand, ongoing supply disruptions could hinder sales in India's ₹60,000-crore soft drinks market.
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Consumers are facing limited availability of Diet Coke, leading to bulk buying and increased prices for packaged beverages. Retailers are struggling to keep products in stock during peak demand season.
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