Diet Coke shortage opens doors for zero-sugar brands

Rising summer demand for low-calorie drinks is accelerating user trials of alternative brands

- Vaeshnavi Kasthuril

A nationwide Diet Coke supply crunch is creating an opening for D2C zero-sugar beverage brands, as health-conscious urban consumers drive demand.

(BLOOMBERG)

A nationwide shortage of Diet Coke is opening the way for direct-to-consumer zero-sugar beverage brands to win new customers as supply disruptions leave multinational soda makers short on shelves this summer.

With demand for low-calorie drinks rising in peak summer months of April and May, newer companies are using the disruption to attract consumers who may not find their usual diet cola, betting shortages could translate into repeat purchases, industry executives told Mint.

For many startups, including Paper Boat Zero, Chinni Kum, Zyro, and Jimmy's, the impact has been less severe as a large part of their portfolio is sold in PET bottles rather than aluminium cans.

Ankur Bhatia, founder of Jimmy’s, said bottle-based packaging has given it a ‘tactical edge’ as can shortages worsen, with beer and soft drink makers competing for the same capacity.

“The can-making lines are the same. PET bottles like ours can move fast,” he said. The shortage has hit both tier 1 and tier 2 cities.