Key facts
- Coca-Cola has raised Diet Coke prices in India by over 10% due to supply chain disruptions linked to the Iran conflict.
- The company is now using larger, more expensive aluminum cans sourced from Southeast Asia.
- The Strait of Hormuz, a critical shipping route for aluminum cans, has experienced significant disruptions.
- Diet Coke's popular 300-ml can is being replaced by a 330-ml can priced higher on a per-milliliter basis.
- Diet Coke is predominantly sold in cans in India, unlike most other markets where it is sold in bottles and cans.
The ongoing conflict involving Iran has led Coca-Cola to increase the price of Diet Coke in India by over 10%, as supply chains for aluminum cans have been severely disrupted. The company is now procuring larger and more expensive cans from Southeast Asia to meet demand. The Strait of Hormuz, a vital shipping route for these materials, has seen significant disruptions to commercial traffic. This situation highlights how global conflicts are forcing companies to adapt their supply chains and adjust pricing in key consumer markets. In India, Diet Coke is predominantly sold in cans, making it particularly vulnerable to such disruptions. The popular 300-ml can, previously priced at 40 Indian rupees, is being replaced by a 330-ml can costing 50 rupees, representing a per-milliliter price increase of 13.6%. While Coca-Cola has not publicly announced these changes, sources with direct knowledge confirmed the strategy. Some Indian bottlers have also temporarily offered Diet Coke in smaller, more expensive glass bottles. India is a major growth market for Coca-Cola and Pepsi, with most other beverages sold in plastic or glass bottles. Diet Coke's popularity in India, especially among health-conscious consumers, has grown significantly.