The ongoing conflict involving Iran is now beginning to affect everyday consumer goods in India, with Diet Coke cans becoming harder to find across major cities.
Shortage hits store shelves
Retailers in cities such as Mumbai, Bengaluru, Pune and parts of Delhi-NCR are reporting stock-outs of Diet Coke. The shortage comes at a time when demand typically peaks during the summer months.
The issue is linked to disruptions in aluminium can supplies, triggered by the wider impact of the conflict on global trade routes. Retailers say the situation worsened over the weekend, with limited stock selling out almost immediately.
Also Read | Why is Larak Island in focus as India issues Hormuz transit directive?
"We are facing acute Diet Coke stock-outs since the weekend; if supplies do come, they are being immediately picked by consumers," a leading grocery retailer in Delhi-NCR told ET.
Why Diet Coke is hit harder
Industry executives point out that while can shortages are affecting multiple beverages, Diet Coke is more exposed due to its heavy reliance on aluminium cans.
"While can shortages are impacting all soft drinks, the reason why Diet Coke is seeing shortage in particular is because of a combination of factors," The Times of India quoted a leading bottling partner as saying. "It is the fastest growing diet drink in the country by a significant margin."
Unlike other aerated drinks, which are available in PET bottles or glass, Diet Coke is largely sold in cans, making it more vulnerable to supply disruptions.
Imports rise, costs climb
To manage the shortfall, companies are turning to markets such as the UAE, Sri Lanka and Southeast Asia for aluminium cans. However, these imports come at a higher cost—estimated to be 25–30 per cent more expensive.
The strain extends beyond cans. "Supply constraints are worsening, especially for aluminium cans and LPG used in glass manufacturing furnaces, forcing some units to either operate at just one-fourth of their capacity or shut down temporarily," said a senior executive at a global beverage maker.
Domestic manufacturers are also struggling to keep up, with capacity expansion expected to take time.
Demand surge adds pressure
Rising demand for low-sugar and sugar-free drinks has further tightened supplies. Sales in this segment have doubled over the past year, leading to a mismatch between supply and demand.
"With some stocks still available on quick commerce platforms, people are resorting to bulk buying," an executive at a quick commerce platform said.
Industry seeks relief
Industry bodies have approached the government, seeking temporary relief measures such as suspension of customs duties on aluminium cans and glass bottles. Rising input costs, including a 20% increase in glass bottle prices and higher freight charges, have added to the pressure.
Also Read | Delhi heatwave alert: Government issues safety guidelines for schools as temperatures rise
"This is peak demand season, and just a month ago, we were optimistic that availability would improve," Aditya Ishan Varshnei, CEO of Latambarcem Brewers told ET. "That hasn't materialised and we now have little choice but to source from markets such as Sri Lanka, which is pushing up our costs."
With supply constraints persisting, the shortage could continue even as demand remains strong.
