Diet Coke shortage framed as a demand signal
Coca-Cola chief financial officer John Murphy told Reuters that a recent shortage of Diet Coke in India was a "wonderful problem to have," because it reflected accelerating consumer demand for the brand. According to the ETBrandEquity report, Murphy projected the brand would end the year with "an order of a 10x increase" in demand off a small base. The shortfall had earlier sparked viral posts from Indian consumers reporting missing cans and so-called Diet Coke parties.
Q2 results and rising input costs
Murphy linked the supply disruption to higher aluminium and PET plastic prices, which he said rose more in 2026 than Coca-Cola had anticipated and were squeezing both supplies and pricing. Despite the pressure, Coca-Cola reported total unit case volume growth of 5% in the June quarter, led by India, China, the United States and Brazil. The company is working to offset the cost increases, though Murphy did not detail the specific measures.
India share loss alongside long-term investment pledge
In its second-quarter earnings statement, Coca-Cola said India saw an overall decline in share of the non-alcoholic ready-to-drink (NARTD) segment, spanning fruit juices, energy and sports drinks, and dairy alternatives. Chief executive Henrique Braun, speaking on a post-earnings investor call, described India as "a long-term opportunity and continues to be very attractive, where it will invest ahead of the curve," and pointed to opportunities in both affordable and premium tiers. Earlier comments from Murphy had indicated India is expected to become Coca-Cola's third-largest market by sales volume, though no timeline was given.
Competitive pressure from Campa and packaging reliance
The ETBrandEquity report said Coca-Cola's India share has come under heightened competitive pressure from rival Campa, which is challenging the long-standing dominance of Coke and Pepsi. The April Diet Coke stock-out was tied to supply disruptions of aluminium beverage cans linked to the West Asia conflict, with the UAE a core supplier to Indian can makers such as Ball Beverage Packaging and Canpack, which were reported to lack sufficient local manufacturing capacity. Diet Coke was particularly exposed because it is sold only in cans, unlike many other soft drinks in the company's Indian portfolio.
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