War-related disruptions in the Strait of Hormuz have led to delays in aluminium can shipments from the Gulf region, triggering supply constraints for beverage manufacturers in India. The disruption has particularly affected Diet Coke, which is sold exclusively in canned form in the country.
As a result, Coca-Cola has reportedly begun rationing Diet Coke supplies across parts of India and, in some cases, has been unable to fully meet distributor demand. This has led to shortages in several cities, with retailers and wholesalers experiencing inconsistent availability of the product.
According to industry sources, the shortage stems primarily from delayed imports of aluminium cans, which are a key packaging component for soft drinks. The Gulf region accounts for a significant share of global aluminium production, and shipping disruptions through the Strait of Hormuz have impacted the movement of raw materials and finished packaging supplies.
In addition to import delays, rising production costs and energy constraints have further tightened supply within India’s domestic packaging industry. Some distributors have reported receiving partial shipments, while others say order fulfilment timelines have been extended significantly.
Coca-Cola counts India as an important growth market, particularly in the low- and zero-sugar beverage segment. However, the current disruption has highlighted vulnerabilities in global supply chains, especially for products dependent on imported packaging materials.
The situation underscores how geopolitical tensions in key maritime trade routes can have ripple effects on consumer markets far from the conflict zone, impacting availability of everyday products on retail shelves.
— With inputs from Reuters