The latest development comes weeks after shortages of Diet Coke sparked an unusual trend across India, where "Diet Coke parties" emerged as pubs and event organisers capitalised on the scarcity of the soft drink. Now, the beverage itself has become more expensive as supply constraints persist.
According to sources familiar with the matter, Coca-Cola has increased the price of Diet Coke in India by more than 10 per cent after disruptions in the Middle East made it increasingly difficult to source aluminium cans used to package the drink.
The company has reportedly been forced to import larger and more expensive aluminium cans from Southeast Asia after supplies of its regular cans became constrained. The sources, who requested anonymity because the company's strategy is confidential, said the move was necessary to maintain product availability despite rising costs.
The disruption has been linked to renewed instability around the Strait of Hormuz, one of the world's most important shipping corridors. The route serves as a key transit point for aluminium cans and related raw materials destined for India, but commercial shipping has reportedly been heavily disrupted following the collapse of an interim truce intended to ease tensions surrounding the Iran conflict.
Industry observers warn that further escalation could affect additional shipping routes, creating broader challenges for manufacturers dependent on imported packaging materials.
The situation illustrates how geopolitical tensions continue to affect multinational companies, forcing them to rethink supply chains while passing higher operating costs on to consumers in major markets.
India is particularly exposed because Diet Coke is sold predominantly in aluminium cans, unlike many other countries where plastic bottles remain the primary packaging format.
Before the disruption, the drink's most popular 300-millilitre can retailed for 40 Indian rupees. However, Coca-Cola has now begun replacing the smaller cans with 330-millilitre versions priced at 50 Indian rupees.
Although consumers receive a slightly larger serving, the change represents an effective price increase of about 13.6 per cent on a per-millilitre basis.
Coca-Cola has not publicly announced the pricing adjustment and did not respond to requests for comment regarding the reported changes.
To help ease shortages, at least one of the company's Indian bottlers has also introduced Diet Coke in 200-millilitre glass bottles for a limited period. However, the alternative packaging is significantly more expensive than the traditional canned version, according to market listings and sources familiar with the arrangement.
India remains one of the fastest-growing markets for global beverage giants Coca-Cola and PepsiCo. While most of their products in the country are sold in plastic and glass bottles as well as cans, Diet Coke relies heavily on aluminium packaging, making it especially vulnerable to supply chain disruptions.
The company's Coke Zero brand has largely avoided similar challenges because it is available in both plastic bottles and aluminium cans, giving Coca-Cola greater flexibility in managing inventory.
Despite the supply issues, demand for Diet Coke continues to grow among India's health-conscious consumers, who increasingly favour low-calorie soft drinks.
The shortage has also created unexpected business opportunities. In recent months, pubs, restaurants and social media influencers have organised so-called "Diet Coke parties," charging entry fees ranging from $10 to $16 and offering guests access to the increasingly hard-to-find beverage alongside music, entertainment and alcoholic drinks.
What began as an unusual consumer trend has now become a clear example of how geopolitical conflict can influence everyday products, demonstrating that disruptions thousands of miles away can ultimately affect prices on supermarket shelves and consumer choices in one of the world's largest markets.