The Iran conflict has disrupted aluminium can supplies to India, forcing Coca-Cola to increase Diet Coke prices and introduce larger cans. The company has reportedly shifted to costlier 330-ml cans from Southeast Asia due to shortages of regular 300-ml cans. The disruption highlights the wider impact of geopolitical tensions on global supply chains.
The ongoing Iran conflict is now being felt in an unexpected corner of India's consumer market. After triggering a shortage of Diet Coke in the country, the disruption has also forced Coca-Cola to increase prices and introduce larger cans as it struggles with supply chain challenges.
The company has increased the price of Diet Coke by more than 10% in India after disruptions in the supply of aluminium cans. According to people with direct knowledge of the matter, Coca-Cola has started sourcing more expensive 330-ml cans from Southeast Asia because supplies of its regular 300-ml cans have been affected. The company has not publicly announced the price revision and did not respond to requests for comment.
Conflict hits the can supply
The disruption is linked to the Strait of Hormuz, a crucial shipping route for aluminium cans and related raw materials reaching India. Commercial traffic through the route has been heavily disrupted following the collapse of an interim truce in the Iran conflict, raising concerns that supply issues could continue or even spread to other shipping routes, Reuters reports.
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