NEW DELHI: India’s urban consumers, particularly health-conscious Gen Z and millennials who have embraced sugar-free beverages, are facing an unexpected summer inconvenience: empty shelves and “out of stock” notifications for Diet Coke on quick commerce platforms and in retail stores.
The popular zero-sugar cola has become scarce in major cities, turning a routine purchase into a hunt and sparking memes and frustration across social media.
The Extent of the Shortage
Reports indicate that Diet Coke stocks have run dry or become severely limited in Mumbai, Bengaluru, Pune, Gurugram, Noida, and parts of Delhi-NCR. The issue first surfaced prominently in Mumbai and quickly spread to other metros.
Quick commerce apps like Blinkit and Swiggy Instamart show frequent “out of stock” alerts, while physical retail outlets report rapid sell-outs whenever fresh supplies arrive. Consumers have resorted to bulk buying when limited stocks appear online, further straining availability.
This shortage coincides with peak summer demand, when sales of colas and cold beverages typically see double-digit growth.
Why Diet Coke Is Hit Harder Than Other Soft Drinks
Unlike regular Coca-Cola, Thums Up, or rival Pepsi products, which are available in PET bottles and returnable glass bottles, Diet Coke in India is packaged almost exclusively in aluminium cans. This heavy reliance on cans makes it particularly vulnerable to disruptions in aluminium beverage can supply.
A leading Coca-Cola bottling partner, speaking to The Economic Times, explained the disparity: “While can shortages are impacting all soft drinks, the reason why Diet Coke is seeing shortage in particular is because of a combination of factors. It is the fastest growing diet drink in the country by a significant margin. Also, unlike other sparkling drinks like Coke, Thums Up, or rival Pepsi, which are also sold in PET bottles and returnable glass bottles, Diet Coke is almost entirely packaged in cans.”
Sales of sugar-free and low-sugar drinks, including Diet Coke, have doubled in the past year, driven by rising health awareness and the appeal of zero-sugar options among younger consumers.
The Root Cause: Geopolitical Tensions and Aluminium Supply Shock
The primary trigger is a global shortage of aluminium beverage cans, intensified by the ongoing conflict involving Iran in the Middle East.
The Gulf region accounts for approximately 9% of global aluminium production. Since the end of February 2026, Iran’s actions, including a de facto blockade of the Strait of Hormuz have disrupted shipments of aluminium and related materials, trapping supplies and delaying exports.
This has led to higher aluminium prices, with global benchmarks reaching multi-year highs (around $3,672 per tonne earlier in April on the London Metal Exchange) and domestic prices in India climbing to about Rs 375 per kg. Shipping delays, elevated freight and insurance costs, and broader supply chain uncertainties have compounded the problem.
Nick Snowdon, head of metals and mining research at commodity trader Mercuria, told Reuters, “The scale of the supply shock we’re seeing in the aluminium market is probably the largest single supply shock a base metals market has suffered in the post-2000 era.” He further characterized it as “a ‘black swan’ event” that “no one could have foreseen.”
Additional pressures include strong demand from the construction, automotive, and packaging sectors, energy-intensive smelting processes affected by rising oil prices, and limited spare production capacity worldwide.
Broader Impact on the Beverage Industry
The aluminium can crunch is not limited to Diet Coke. It affects other canned beverages, including beer, leading to operational challenges across the sector.
Beverage companies are now importing cans from alternative sources such as the UAE, Sri Lanka, and Southeast Asia at 25–30% higher costs. Major can manufacturers like Ball Beverage Packaging and Canpack lack immediate capacity to ramp up production, with new lines requiring 10–12 months to become operational.
Some production units have been forced to operate at reduced capacity (as low as one-fourth) or shut down temporarily due to shortages of aluminium cans and even LPG used in glass manufacturing furnaces.
Input costs have risen sharply: glass bottle prices by about 20%, paper cartons nearly doubling, and other packaging materials up 20–25%. Overall packaging and logistics costs for the industry have increased by 12–15%, partly due to higher freight and insurance.
The Federation of European Business in India, whose members include major players like Heineken, Anheuser-Busch InBev, and Carlsberg, has requested the government to temporarily suspend customs duties on imports of glass bottles and aluminium cans to ease the pressure.
An executive at a large beer company, speaking to The Economic Times, observed that some firms are redirecting scarce cans toward more profitable markets or higher-margin items.
Aditya Ishan Varshnei, CEO of Goa-based craft beer maker Latambarcem Brewers, told The Economic Times: “This is peak demand season, and just a month ago, we were optimistic that availability would improve. That hasn’t materialised and we now have little choice but to source from markets such as Sri Lanka, which is pushing up our costs.”
A senior executive at a global beverage maker added, in comments to The Economic Times: “Supply constraints are worsening, especially for aluminium cans and LPG used in glass manufacturing furnaces, forcing some units to either operate at just one-fourth of their capacity or shut down temporarily.”
Coca-Cola India has not issued a formal public statement and did not respond to queries from The Economic Times. However, two Coca-Cola distributors told Reuters that the company has notified them of rationing supplies or being unable to fulfill all orders due to the can shortage. One distributor remarked: “We’ve been placing orders but have been told there is a shortage due to war.”
In certain areas, retailers report that the company is promoting Coke Zero, available in plastic bottles, as a substitute. Grocer Ashish Saxena in northern Uttar Pradesh noted delayed orders and this shift in promotion.
Consumer Reaction and Quick Commerce Strain
The shortage has struck a chord with urban consumers who view Diet Coke as part of their daily routine. Social media platforms are filled with memes, “withdrawal” stories, and humorous complaints about reduced productivity or “heartbreak” over the missing cans.
Quick commerce platforms, which rely on lean inventory in dark stores and rapid replenishment for 10-minute deliveries, are particularly exposed. The system’s fragility becomes evident when even minor supply disruptions occur, leading to widespread stock-outs.
A grocery retailer in Delhi-NCR observed: “We are facing acute Diet Coke stock-outs since the weekend; if supplies do come, they are being immediately picked by consumers.”
An executive at a quick commerce platform, speaking anonymously to The Economic Times, confirmed that remaining stocks are often subject to bulk purchases.
Outlook and Potential Resolution
While the shortage is acute, stocks may begin returning in limited quantities in certain areas soon.
The episode highlights how distant geopolitical events can ripple through global supply chains to affect everyday consumer goods. It also underscores the vulnerability of just-in-time inventory models in quick commerce and the industry’s heavy dependence on imported packaging materials.
For now, many Indians are making do with alternatives or waiting for the next delivery notification, hoping the cans start “canning” again soon.
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