Coke is hit? In India, Iran war can shortage sends Diet Coke prices fizzing

Advertisement Coke is hit? In India, Iran war can shortage sends Diet Coke prices fizzing The closure of the Strait of Hormuz, a critical supply route for aluminium cans, has forced Coca-Cola to source some from Southeast Asia 2-MIN READ2-MIN 1 Listen First, the US-Israeli war on Iran sparked a Diet Coke shortage in India by squeezing supplies of aluminium cans, triggering an unusual wave of “Diet Coke parties” in one of the world’s largest consumer markets. But now, the fizzy drink is getting pricier. Across India, Coca-Cola has hiked prices of Diet Coke – sold predominantly in aluminium cans in the country – by more than 10 per cent due to the ongoing Middle East conflict, which has choked its supply chain. As a result, the company had been forced to procure pricier, larger-sized cans from Southeast Asia, said two people with direct knowledge of the matter, who declined to be named as the strategy is confidential. The Strait of Hormuz, a critical supply route for these aluminium cans and related raw materials to travel to India, has virtually closed again with commercial traffic heavily disrupted, following the collapse of an interim truce meant to end the Iran conflict. There are fears the disruption could widen further to block another sea route. Coke’s hike is an example of how the conflict is still forcing global companies to alter their supply chains and increase prices in some of their most consequential consumer markets. Advertisement Select Voice Select Speed 1.00x