MUMBAI: Cans or glass bottles, beer or cold beverages – companies are losing their cool over rising costs rather than keeping their spirits up amid El Nino-induced harsh weather this summer, leading to higher demand. The war has affected companies on two fronts – first, soft drink makers like Coca-Cola that use aluminum cans (for Diet Coke and 300 ml cans are sold more in India) are facing supply disruptions as the bulk of imports of such cans come from West Asia. Even packaged coffee companies, some of which sell smaller 230 ml cans, have the same problem. For example, D2C coffee brand Sleepy Owl is tapping Southeast Asian markets for aluminum cans, but costs have increased by about 15% so far. Moreover, in view of the high demand, procurement of supplies is also taking time. CEO Ajay Thandi said, “Going forward, there will be no option but to pass this increase on to consumers. While the cost of glass bottles is lower for us, logistics is an issue.” He said cans constitute 25-30% of the company’s portfolio.As far as beer makers are concerned, the cost of both aluminum cans and glass bottles has increased, despite nearly 80% of the industry’s supplies being locally sourced. This is because the war affected production at the ground level just as the industry built up inventory, creating a backlog that has yet to be reduced. Vinod Giri, director general of the Brewers Association of India, said manufacturing operations were hit after the LPG shortage – can suppliers have increased prices by 15%, while the cost of glass bottles has increased by 20%. “We have no problem with the supply of cans because we have a global network…we There is an inflation issue, there is a cost issue,” Vivek Gupta, MD and CEO of United Breweries, which makes Heineken and Kingfisher beers, said in a recent earnings call.Some old stocks of 300 ml Diet Coke cans priced at Rs 40 are still available in the market, but distributors expect the new stock to be priced at Rs 10 or more, said Dhairyasheel Patil, president, All India Consumer Products Distributors Federation (AICPDF). Queries sent to Coca-Cola and PepsiCo India did not elicit any response.