Coca-Cola Hikes Diet Coke Prices in India
Coca-Cola has raised Diet Coke prices in India as aluminium can supply disruptions increase sourcing costs.
SociapaHQ
Coca-Cola has raised the price of Diet Coke in India due to disruptions in aluminium can supplies that have affected its supply chain amid the ongoing conflict in the Middle East.
The unrest has affected shipments passing through the Strait of Hormuz, an important sea lane used to ferry aluminium cans and related raw materials into India. Coca-Cola was said to have bought larger aluminium cans from South East Asia, which increased the cost of procurement as the shipping movement along the corridor suffered.
To offset these rising costs, the company has allegedly replaced its popular 300 ml Diet Coke can costing ₹40 with a 330 ml can costing ₹50 in several markets. The new prices mean consumers are getting more for their money per millilitre but are still paying more.
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Supply Disruptions:
Coca-Cola declined to comment on the reported changes and has not formally announced the pricing revision.
At least one Coca-Cola bottler has also started to offer Diet Coke in 200 ml glass bottles on a limited basis, the report said. The change offers a different pack format given the tight can availability, but the glass bottle is priced at a premium to the previous 300 ml can.
Unlike many other Coca-Cola beverages in India, Diet Coke is mainly marketed in aluminium cans and therefore faces greater disturbances in the availability of cans. The company’s other products are offered in plastic bottles, glass bottles and cans, allowing for greater flexibility during supply shortages.
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Coke Zero has not faced similar supply constraints, as it is sold in multiple packaging formats, reducing its reliance on aluminium cans, the report said.
Coca-Cola and PepsiCo are global beverage companies, and India is a key growth market for both. The latest disruption serves as a reminder of how geopolitical developments can impact global supply chains, driving up sourcing and logistics costs, which in turn has an impact on product pricing.
The supply constraints also come at a time when Diet Coke is witnessing increasing popularity among urban and health conscious consumers in India with the beverage gaining increased visibility across social media and hospitality led experiences in recent months.
