Aluminum Prices Hit Four-Year High, Causing Diet Coke Shortages in India
KO•Closure of the Strait of Hormuz has cut off about 9% of global aluminum supply, pushing prices to four-year highs and causing Diet Coke shortages in India. The squeeze on cans has spurred entry-fee “Diet Coke parties” in New Delhi as consumers compete for limited stock.
1. Aluminum Supply Disruption
The closure of the Strait of Hormuz has halted roughly 9% of global aluminum shipments, driving benchmark prices to four-year highs. This bottleneck reflects broader energy-driven constraints on raw materials routed through the Gulf.
2. Impact on Diet Coke in India
Diet Coke is sold exclusively in aluminum cans in India, making it especially vulnerable to the supply shock. Retailers in New Delhi are charging entry fees at “Diet Coke parties” as consumers scramble for scarce canned stock.
3. Coca-Cola’s Strategic Options
Coca-Cola has declined to comment publicly but faces pressure to secure alternative can suppliers or explore different packaging formats. Any shift could incur higher costs or disrupt existing production lines.
4. Broader Supply Chain Ripple Effects
The aluminum crunch highlights risks to other packaged goods reliant on Gulf-routed materials such as plastics, inks and household items. Companies across food and beverage sectors are evaluating contingency plans to mitigate further disruptions.
