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Diet Coke Vanishes As Iran War Squeezes Aluminium Supply
Fizz Crisis: Diet Coke Vanishes As Iran War Squeezes Aluminium Supply
Diet Coke has become an unexpected casualty of supply chain disruptions linked to the ongoing tensions involving Iran, with several Indian cities witnessing stock-outs of the popular sugar-free beverage due to a severe shortage of aluminium cans. The crunch has also affected other canned drinks, including beer.
What began as a supply gap in Mumbai has now spread to Bengaluru, Pune and parts of Delhi-NCR, even as peak summer demand drives strong double-digit growth in cola and beer sales. Retailers say shelves are being emptied as soon as limited supplies arrive. “We’ve been facing acute stock-outs since the weekend. Whatever comes in gets picked up immediately," said a grocery retailer in Delhi-NCR.
While Coca-Cola India did not respond to queries, industry executives said the shortage is more visible in Diet Coke due to its unique packaging mix. Unlike other soft drinks such as Coke, Thums Up, or Pepsi, which are available in PET bottles and returnable glass formats, Diet Coke is almost entirely sold in cans—making it more vulnerable to supply disruptions.
The problem is being compounded by surging demand for low- and no-sugar beverages, with sales of such drinks having doubled over the past year. This demand spike has outpaced supply, intensifying shortages in the market.
To bridge the gap, companies are increasingly importing aluminium cans from markets such as the UAE, Sri Lanka and Southeast Asia, though these imports are 25–30% more expensive. Together, these regions account for nearly a third of India’s aluminium can supply due to their scale and cost advantages.
However, domestic capacity remains constrained. Major manufacturers like Ball Beverage Packaging and Canpack are already operating near capacity, and setting up new production lines could take up to a year. In some cases, companies are prioritising higher-margin products or diverting supplies to more profitable markets.
The shortage is also impacting production. Rising costs and supply bottlenecks for inputs such as aluminium cans and LPG—used in glass manufacturing—have forced some plants to operate at reduced capacity or temporarily shut down, according to industry executives.
Consumers, meanwhile, are feeling the pinch. With limited availability on quick commerce platforms, many are resorting to bulk buying, while social media is flooded with posts about missing Diet Coke stocks.
Industry bodies have flagged the issue to the government. The Federation of European Business in India—whose members include global brewers—has sought a temporary suspension of import duties on glass bottles and aluminium cans, citing sharp cost escalations. Packaging costs have surged significantly, with glass bottle prices up about 20% and paper cartons nearly doubling, while freight and insurance costs have also risen.
“This is peak demand season, and we had expected supply to improve by now. That hasn’t happened, forcing us to import at higher costs," said Aditya Ishan Varshnei of Latambarcem Brewers.
The aluminium can shortage comes after a weak year for India’s Rs 60,000-crore soft drinks market, which was hit by unseasonal rains last season. While companies were hoping for a strong recovery this summer, ongoing supply disruptions and stock-outs could weigh on sales despite robust demand.
Source: News18
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