In India, Iran war forces Diet Coke to roll out a bigger can, heftier price tag

• Diet Coke's new 330-ml cans are priced at 50 rupees versus 40 rupees for the previous 300-ml size, representing a 13.6% per-ml price increase
• The Strait of Hormuz, a critical supply route for aluminum cans to India, has been virtually shut down due to the Middle East conflict
• Diet Coke is particularly vulnerable in India as it is sold predominantly in aluminum cans, unlike other Coca-Cola products which are available in plastic and glass bottles

Summary

Key Development:

Coca-Cola has increased Diet Coke prices in India by over 10% due to supply chain disruptions caused by the U.S.-Israeli conflict with Iran. The company has replaced its popular 300ml cans (priced at 40 rupees/41 cents) with larger 330ml cans at 50 rupees—representing a 13.6% per-milliliter price increase.

Supply Chain Impact:

The conflict has effectively closed the Strait of Hormuz, a critical shipping route for aluminum cans and raw materials to India. With supplies of smaller cans constrained, Coca-Cola has been forced to import more expensive, larger cans from Southeast Asia.

Market Context:

Diet Coke is particularly vulnerable in India because, unlike other markets, it's sold predominantly in aluminum cans rather than bottles. The brand has gained significant popularity among health-conscious Indian consumers. Some bottlers have temporarily introduced 200ml glass bottles as alternatives, though these are considerably more expensive than canned options.

Broader Implications:

The situation illustrates how the Middle East conflict continues forcing multinational corporations to restructure supply chains and adjust pricing in major consumer markets. India represents a crucial growth market for both Coca-Cola and Pepsi. The disruption has been severe enough that Indian establishments have hosted ticketed "Diet Coke parties" ($10-16 entry fees) capitalizing on product scarcity.

Other Products:

Coca-Cola's Coke Zero supplies remain unaffected as it's sold in both plastic bottles and cans. Most other Coca-Cola and Pepsi products in India use plastic and glass bottles alongside cans, making them less vulnerable to aluminum supply disruptions.