If you’ve also been crazily searching for your favourite Diet Coke in stores and online websites in this summer wave, then we are the same. Everyone’s go-to sugar-free drink has disappeared leaving them craving for that silver can. And what might look like a simple stock out, is actually part of a larger global crisis linked to the current conflict going on in the Middle East. Read to know more about what happened here.
Why Is There A Diet Coke Shortage In The World?
Well contrary to popular belief, the issue is not with the drink but with the can.diet-coke-shortage-reason-crisis-middle-east-war-aluminium-shortagediet-coke-shortage-reason-crisis-middle-east-war-aluminium-shortage and many other canned drinks across cities. Unlike drinks that come in plastic bottles or glass, Diet Coke largely comes in cans. This affects it amid the aluminium supply shortage. Meanwhile, demands for sugar-free and low-sugar drinks have surged and sales in this segment has doubled over the last year creating an environment where the demand is more than the supply.
Here’s how the ongoing war in the Middle East comes into the story. The region is responsible for about 7 million metric tonnes of aluminium smelting capacity, which is around 9% of global supply. While this may not seem like that big of a number, disruptions here have a big impact on global trade flows and supply chains. Due to the war, shipping routes have been affected as well as increased freight and insurance costs.
It has also created an uncertainty about the movement of raw materials like alumina which is very important for the production of aluminium. It goes through critical routes like Strait of Hormuz. For big beverage companies, this global mess has led to many big challenges like supply shortage while companies are increasingly importing aluminium cans from other regions like West Asia and Southeast Asia, at significant higher costs.
Also Read: Did You Know Diet Coke Is The New Fridge Cigarette And Was Made For Women?
What are your thoughts on this? Let us know.
Also Read: Urvashi Rautela Shares Emotional Note After Leaving Kuwait Amid Explosive Middle East Crisis