Why Coca-Cola Has Raised Diet Coke Prices by Over 10% in India

Coca-Cola has effectively increased the price of canned Diet Coke by more than 10% in India after supply chain disruptions linked to the ongoing West Asia conflict squeezed the availability of aluminum cans, according to a Reuters report.

The report said the beverage maker has started replacing its regular 300-ml Diet Coke cans, priced at ₹40, with 330-ml cans priced at ₹50 as supplies of the smaller cans remain tight. While consumers receive a larger quantity, the price works out to an effective increase of 13.6% per millilitre.

The news agency, citing people familiar with the matter, reported that the company has been forced to source larger and more expensive aluminum cans from Southeast Asia after disruptions affected its regular supply chain. Coca-Cola did not respond to Reuters' requests for comment and has not publicly announced the pricing change.

West Asia Conflict Hits Can Supply Chain

The supply disruption is linked to renewed tensions in the West Asia, which have affected shipping through the Strait of Hormuz, a key route for aluminum cans and related raw materials reaching India.

The report said commercial traffic through the route has been heavily disrupted following the collapse of an interim truce in the Iran conflict, forcing companies to rethink their sourcing strategies.

The higher procurement and logistics costs have prompted Coca-Cola to shift to larger imported cans, resulting in the effective price increase for Diet Coke in India.

India More Exposed Than Other Markets

India is one of the few markets where Diet Coke is sold predominantly in aluminum cans, making the product more vulnerable to disruptions in can supplies than many of Coca-Cola's other beverages.

Most soft drinks sold by Coca-Cola and Pepsi in India are available in plastic and glass bottles in addition to cans. The agency reported that Coke Zero has not been affected because it is sold in multiple packaging formats.

At least one Coca-Cola bottler has also started offering Diet Coke in 200-ml glass bottles for a limited period, according to Reuters and online retail listings. However, these bottles are priced higher than the canned version.

Shortages Sparked Consumer Buzz

Supply shortages had already created unusual demand for Diet Coke in India even before the latest price increase.

The news agency reported that in recent months, some pubs and social media influencers organised "Diet Coke parties", where visitors paid entry fees for access to the drink alongside music and alcohol.

The development underscores how geopolitical tensions continue to ripple through global supply chains, affecting not only manufacturers but also prices paid by consumers in key growth markets such as India.