What began as a distant geopolitical conflict is now quietly affecting something as everyday as a chilled can of Diet Coke in India. Across stores, distributors and retailers are noticing something unusual: orders are getting delayed, shelves aren’t being restocked as quickly, and in some places, the drink is simply unavailable. The reason traces back thousands of kilometres away to tensions in the Gulf region.
The ongoing conflict involving the US, Israel and Iran has disrupted shipping routes in the Gulf, particularly around the Strait of Hormuz.
This matters as nearly 9% of the world’s aluminium comes from this region. And aluminium is what goes into making beverage cans. For The Coca-Cola Company, that disruption has created a bottleneck. Shipments of cans have been delayed, and suddenly, something as simple as packaging has become a problem.
Why only Diet Coke?
Most soft drinks in India are sold in both plastic bottles and cans, giving companies some flexibility when supply chains are hit. But Diet Coke is different. It is almost entirely sold in cans.
That means when cans run short, there’s no easy fallback.
According to distributors, they have been placing regular orders, only to be told there isn’t enough stock. Supplies are now being rationed, and some orders are not being fulfilled at all.
Demand is there, but supply isn’t
Ironically, this shortage comes at a time when Diet Coke is doing well in India. It has become a strong growth product, with sales touching around Rs 50 billion in the last financial year.
But even strong demand can’t fix a supply problem.
According to reports, industry insiders said that some production is still happening, but it’s limited. Rising fuel costs have also made local manufacturing more expensive, adding another layer of pressure.
What retailers are seeing
At the ground level, the change is quite visible. Retailers say what used to be a quick turnaround, deliveries within a few hours, is now taking much longer. In some cases, stock simply isn’t arriving.
To cope, companies are pushing alternatives like Coke Zero, which comes in plastic bottles and is easier to supply sooner.