Coca-Cola Sees India Market Share Decline Amid High Aluminium Costs

Coca-Cola reported strong quarterly earnings on Tuesday, but its performance in India was a weak spot. The company's Asia Pacific region saw market share decline due to high aluminium costs and limited packaging options for mid-tier price points.

The issue started after the US-Israeli war on Iran led to a Diet Coke shortage in India as aluminium can supply was squeezed. This prompted a surge in demand, with 'Diet Coke parties' boosting sales. To offset this, Coca-Cola has raised prices across India and is sourcing larger-sized cans from Southeast Asia.

'A difficult year for the industry,' said CFO John Murphy, acknowledging that Coca-Cola had lost market share in the past quarter. However, he expressed optimism about the Indian market's potential and stated that demand for Diet Coke was expected to increase by 10 times compared to its previous level.