The impact of the ongoing Iran conflict in the Middle East is now clearly visible on India’s soft drink market. Coca-Cola has increased the price of Diet Coke in India by more than 10% due to the global supply chain being affected. The company now has to import larger and more expensive aluminum cans from South-East Asia than before. This has had a direct impact on the pockets of customers.
Major reason for obstruction in Strait of Hormuz
According to sources related to the matter, the Strait of Hormuz is an important route for the supply of aluminum cans and its related raw materials to India. After the breakdown of the temporary ceasefire to stop the Iran conflict, the movement of ships on this sea route has again been affected. This reduced the availability of cans and increased the cost. This is why Coca-Cola had to purchase expensive cans from alternative sources.
A new can of 330 ml came in place of 300 ml.
In India, Diet Coke was usually sold in 300 ml aluminum cans for Rs 40. But due to shortage of smaller cans, the company has now launched a new can of 330 ml in the market for Rs 50. If we look at the price per milliliter, customers now have to pay about 13.6% more. However, Coca-Cola has not yet officially announced this price increase and the company has not made any comment on this subject.
Sales started in glass bottles also
According to sources, one of the company’s bottling partners in India has also started selling Diet Coke in 200 ml glass bottles for a limited time. However, its price is said to be higher than the can option. This step has been taken to maintain the availability of the product in the market.
India became a big market, popularity increased rapidly
India is a fast-growing consumer market for both Coca-Cola and Pepsi. Most of their soft drinks in the country are sold in plastic and glass bottles, but Diet Coke is mainly available in aluminum cans. This is the reason why its supply has been affected the most.
The popularity of Diet Coke is continuously increasing among health conscious consumers. At the same time, the company’s other sugar-free brand Coke Zero is currently saved from this crisis because it is available in both plastic bottles and cans.
Diet coke shortage becomes business opportunity
In the last few months, many pubs and social media influencers also took advantage of the Diet Coke shortage. He began hosting special “Diet Coke parties” where, for an admission fee, people were treated to Diet Coke, music and other entertainment. It is clear that the impact of global geopolitical events has now reached everyday consumer products and their prices.
Leave a Reply