Diet Coke Faces Shortage in India Due to Aluminium Can Crisis Amid Iran War
Diet coke runs dry in Indian cities as Iran war triggers aluminium can shortage
The Economic TimesImage: The Economic Times
Diet Coke is experiencing significant shortages across major Indian cities, including New Delhi, Mumbai, and Bengaluru, due to a severe aluminium can supply crisis triggered by the ongoing Iran war. This shortage is exacerbated by rising demand for low-sugar beverages during the hot summer months.
- 01Diet Coke shortages are affecting major cities in India, including New Delhi and Mumbai.
- 02The aluminium can supply crisis is driven by the Iran war, impacting beverage production.
- 03Demand for Diet Coke has surged, making it particularly vulnerable to supply disruptions.
- 04Companies are importing aluminium cans at significantly higher costs from other countries.
- 05The Federation of European Business in India has urged the government to suspend customs duties on imports of glass bottles and aluminium cans.
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Diet Coke, produced by Coca-Cola, is facing a significant shortage in several major cities across India, including New Delhi, Mumbai, and Bengaluru, due to a severe supply disruption of aluminium cans caused by the ongoing Iran war. This crisis has led to stock-outs of Diet Coke and other canned beverages, coinciding with a peak demand season as summer temperatures rise. A leading grocery retailer in Delhi-NCR reported acute shortages since the weekend, with remaining supplies being quickly purchased by consumers. Unlike other beverages, Diet Coke is primarily packaged in cans, making it more susceptible to the current supply chain issues. Companies are now forced to import aluminium cans from countries like the UAE and Sri Lanka at 25-30% higher costs. The Federation of European Business in India has requested the government to temporarily suspend customs duties on imports of packaging materials to alleviate the situation. The combined impact of rising demand for low-sugar drinks and supply constraints could affect sales in the packaged soft drinks market, which is already recovering from last year's downturn due to unseasonal rains.
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The shortage of Diet Coke and other canned beverages may lead to reduced availability for consumers during peak summer demand, potentially affecting sales for beverage companies.
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