SynopsisThe CFO of Coca-Cola pointed out the Diet Coke shortage in India as a promising sign of consumer demand, even while facing the pressures of rising costs for aluminium and packaging materials, which have affected their supplies and pricing. Although the beverage giant experienced a loss in market share in the second quarter, India continues to be a key focus for future investments amid growing competition within the beverage industry.ReutersDiet Coke shortage a wonderful problem; India lost share but an attractive market: Coca-ColaThe recent shortage of Diet Coke in India was a "wonderful problem to have" as it showed increased demand, Coca-Cola’s CFO John Murphy told Reuters, London in an interview on Tuesday, adding that the beverage maker lost market share in the country in the second quarter even as higher costs for aluminium and packaging gaps impacted supplies and pricing.The shortage led to a slew of viral posts by Indian consumers calling out to “Diet Coke: missing”, and Diet Coke parties.Also Read: India attractive long-term opportunity for Coca-Cola: CEO Henrique BraunMurphy said aluminium and PET plastic prices increased more this year than Coca-Cola had anticipated, and that the company is working to offset those price pressures, Reuters reported. "I think we'll end up this year ⁠with an order of a 10x increase — off a very small base I might add — but a 10x increase in demand for the brand,” the report added, quoting Murphy.In April this year, stocks of Diet Coke ran out in India as a result of supply disruptions of aluminium beverage cans amid the West Asia war. Diet Coke was particularly impacted as it is sold only in cans, unlike many other soft drinks. The UAE region is a core supplier of aluminium cans to India, since can makers in the country such as Ball Beverage Packaging and Canpack don’t have enough manufacturing capacity.Coca-Cola's global chief executive Henrique Braun said on a post earnings investor call on Tuesday that India “is a long-term opportunity and continues to be very attractive, where it will invest ahead of the curve”. Total unit case volume grew 5% in the June quarter led by India, China, the US and Brazil. However, the Indian market saw an overall decline in beverages’ share in the non-alcoholic ready-to-drink (NARTD) segment, across fruit juices, energy and sports drinks, and dairy alternatives, the Atlanta-based company said in its earnings statement.Also Read: Coca-Cola India set to enter zero-caffeine market; to introduce global brand Coke Zero-Caffeine Zero-SugarThe India market is seeing heightened competition from rivals such as Campa, challenging the dominance of Coke and Pepsi for the first time.In response to analyst queries, Braun said the company sees significant opportunities in affordable and premium segments. "We have said in the past as well that this would be a place that we are going to continue to invest, bringing more consumers to the base in the right way, dialling up our revenue growth management capabilities.”India, a top five market for Coca-Cola globally by volume, is crucial for growth at a time when home markets have matured.Murphy has said in an earlier interview that India is expected to become Coca-Cola’s third largest market by sales volume, though he did not mention a specific timeline.Read More News on...moreless