Aluminum can shortage forces Diet Coke supply limits in India

``` The supply chain crisis triggered by the Strait of Hormuz is affecting the Indian consumer goods market thousands of miles away. On May 7, it was reported that due to the Middle East conflict causing disruptions to aluminum can shipments from the Gulf region, Coca-Cola has begun to restrict the supply of Diet Coke in India, with some distributor orders unfulfilled. Diet Coke is only sold in cans in India, making it particularly sensitive to supply chain disruptions. India is an important growth market for Coca-Cola, and the sugar-free beverage category is in a rapid expansion phase. News of supply restrictions has sparked widespread discussion among Indian consumers on social media, with many users posting memes expressing dissatisfaction on Instagram. One video shows a man rushing into a supermarket and buying more than ten cans of Diet Coke at once, reflecting market anxiety about out-of-stock situations. Freight Disruptions and Energy Shortages Push Supply Chain Into Crisis The Gulf region accounts for about 9% of global aluminum production. Since the end of February, related shipping routes have been blocked, and exports of aluminum and aluminum products have come to a halt. Two Indian Coca-Cola distributors revealed that the company has notified them that due to the war leading to a shortage of cans, some orders cannot be delivered on time and supply is being rationed. Distributor Sanjay said: "We keep placing orders, but are told that supply is tight." An industry executive confirmed that the shortage is partly due to delays in imported aluminum can shipments; at the same time, energy shortages in India have also pushed up the production costs of canning and bottling. “There is still some production, but because the company cannot meet all demand, rationing is necessary,” the executive said. Sugar-Free Beverage Growth Encounters Supply Bottleneck The shortage of Diet Coke comes at a time when Coca-Cola’s India business is in an expansion cycle. In the 2024-25 fiscal year, sales in the Indian market reached 50 billion rupees (about $533 million), the highest level since at least 2021. Sugar-free products are a key growth category—Grand View Research predicts that by 2030, the size of India’s low-sugar food and beverage market will reach $4.7 billion, more than doubling from 2023. However, Diet Coke is sold only in can form in India, a strategy that becomes a clear weakness when the supply chain is under pressure. In contrast, Coke Zero, which uses plastic bottle packaging, has relatively stable supply. Uttar Pradesh grocer Ashish Saxena said that Diet Coke delivery times have lengthened significantly: “Previously orders took five or six hours, now the company is recommending Coke Zero instead, which is also more affordable.” Risk Warning and Disclaimer The market is risky, and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment according to this article is at your own risk. ```