Diet Coke is back in India but costlier
What's the story
Diet Coke has made a comeback in India, but this time in costlier glass bottles. The move comes after a nationwide shortage of aluminum cans disrupted the supply of the popular sugar-free drink. The shortage was first reported in April across major cities such as Mumbai, Bengaluru, Delhi NCR, and Pune. Retailers and restaurant owners reported empty shelves and delayed deliveries as Coca-Cola rationed supplies.
Market challenges
Beverage companies face rising packaging costs
The return of Diet Coke in glass bottles comes as beverage companies face rising packaging costs and shipping delays due to the ongoing Iran conflict. This has disrupted trade routes and raw material supplies across the Gulf region. A 200ml glass bottle of Diet Coke now sells for nearly ₹100 in some markets, compared to about ₹30 earlier for the aluminum can.
Supply chain issues
Diet Coke memes go viral amid shortage
Coca-Cola's rationing of Diet Coke was due to aluminum supply chain disruptions, which have been particularly challenging for this brand as it has primarily been available in cans. Industry reports indicate that shipments of aluminum from the Gulf were delayed after tensions in the Strait of Hormuz disrupted maritime movement. This has led to a change in consumer behavior with Diet Coke fans sharing memes and stockpiling cans amid the shortage.
Brand growth
Health-conscious consumers drive demand for Diet Coke
Despite the supply crunch, Diet Coke has gained popularity among young as well as health-conscious consumers. Market analysts say India is an important growth market for Coca-Cola, especially in the low-sugar beverage segment. Research firm Grand View Research estimates that India's reduced-sugar food and beverage market could cross $4.7 billion by 2030. To meet demand amid the tight supplies, Coca-Cola has been promoting Coke Zero which comes in plastic bottles and is more widely available.
Pricing strategy
Retailers expect prices to remain high
The return of Diet Coke in the glass bottles has restored availability in several stores, but at a premium price. Retailers say prices may remain high until aluminum supplies stabilize and shipping routes in the Gulf return to normal. The "Diet Coke Party" trend has also emerged, with many influencers and Gen Z hosts using chilled glass bottles of Diet Coke as mixers for their drinks.