Diet Coke, beer makers get 6 months to 'can' it
Mumbai authorities have granted a six-month extension until April 2027 for companies to obtain mandatory quality certification for aluminium beverage cans, according to an industry insider. The original deadline was set for October 31, but the postponement provides manufacturers more time to ramp up production amidst supply shortages impacting brands like Diet Coke and certain beers.
Vinod Giri, director general of the Brewers Association of India, revealed that large producers must comply from April 1, 2027, while small enterprises will adhere to the new standard from July 1, and micro businesses from October 1, 2027. The shift towards aluminium cans for beverage sales in India has surged, making up more than a quarter of annual sales, and has doubled over the past two years due to changing consumer preferences.
However, local can suppliers have struggled to meet the escalating demand, with the Middle East war disrupting global supply chains and adding uncertainty to the availability of empty cans worldwide.
The government introduced mandatory BIS certification for aluminium cans in April last year to enhance product safety, freshness, and recyclability. Manufacturers had anticipated producing an extra 600 million cans domestically, but only managed to create half that amount, according to Giri. The extension allows the sector to secure packaging supplies ahead of the summer season, when beverage consumption typically increases.
The ongoing conflict has exacerbated a layer of uncertainty over worldwide empty can availability, as overseas manufacturers certified by the Bureau of Indian Standards (BIS) cannot meet the rising demand in India. Beverage producers have resorted to importing cans from the United Arab Emirates, Sri Lanka, and Southeast Asia, where supply is available, but imported cans are 25-30% pricier than domestically produced ones.
The shortage has been exacerbated by the time-consuming certification process, with some applications necessitating overseas plant inspections, further delaying the approval of new suppliers. Major suppliers have already depleted their domestic capacity, and creating new production lines can take up to a year, highlighting the industry's need for regulatory relief as demand for cans grows and local manufacturers face challenges in expanding their capacity.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
