The US-Israeli war on Iran has led to a shortage of aluminium cans in India, causing a spike in Diet Coke prices across the country. Coca-Cola has increased the price of Diet Coke—primarily sold in aluminium cans in India—by more than 10% due to supply chain disruptions linked to the Middle East conflict.

Two sources with direct knowledge of the matter, who requested anonymity due to the confidentiality of the strategy, revealed that Coca-Cola has been compelled to source pricier, larger-sized cans from Southeast Asia. This shift is a consequence of the Strait of Hormuz—a vital shipping route for aluminium cans and raw materials to India—being virtually closed again after the collapse of an interim truce intended to end the Iran conflict. Commercial traffic through the strait has been heavily disrupted, and there are concerns that the disruption could expand to block additional sea routes.

This price hike exemplifies how the ongoing conflict continues to force global companies to adjust their supply chains and increase prices in key consumer markets like India.

Sources