Reliance’s Campa Cola Shakes Up Beverage Market, Leaving Tata and Giants Like Coca-Cola on Alert

Reliance Industries is making waves in the Indian beverage market with its revival of the Campa Cola brand through its FMCG arm, Reliance Consumer Products Ltd. (RCPL). By offering lower prices and better margins for retailers, Reliance is challenging established giants like Coca-Cola and PepsiCo, forcing them to rethink their strategies.

The Campa Cola brand, which was popular in India during the 1970s and 80s, is making a comeback, and its pricing strategy is causing a stir. Reliance’s approach includes selling its ₹10 Campa Cola pack at prices much lower than its competitors, which has prompted Tata Consumer Products to take notice. Tata’s managing director, Sunil D’Souza, noted that Campa Cola’s pricing has significantly shaken up the market, as it offers retailers higher margins compared to other brands.

While Tata Consumer’s beverages, like Tata Gluco Plus, maintain higher prices for retailers—about 30% more than competitors—Reliance’s strategy encourages retailers to prominently display Campa Cola products in their stores. This focus on retailers aligns the company’s interests with those of local shop owners, crucial in India’s fragmented retail sector.

As Reliance expands Campa Cola’s availability in regions like West Bengal, Bihar, and Uttar Pradesh, its lower pricing is resonating well with price-sensitive consumers, impacting both urban and rural markets. For instance, during the recent Durga Puja festival in West Bengal, Campa Cola’s marketing efforts featured stalls selling its drinks at very low prices, making it more appealing than Coca-Cola and Pepsi, which were priced significantly higher.

Reliance’s disruption strategy involves not just competitive pricing but also leveraging the nostalgia associated with Campa Cola. After acquiring the brand for ₹22 crore last year, Reliance has marketed it as a national contender with local roots, appealing to Indian sentiments.

With an extensive retail network that includes Reliance Fresh, Reliance Smart, and Jiomart, Reliance has a distribution advantage over competitors. This combination of affordable pricing, effective marketing, and strong distribution is helping Campa Cola gain traction quickly.

Analysts believe Reliance’s entry into the $4.6 billion Indian soft drink market could threaten the long-standing dominance of Coca-Cola and PepsiCo. The market is expected to grow by 5% annually until 2027, and Reliance is well-positioned to capture a significant share of this growth.

As Reliance looks to raise between ₹500 crore and ₹700 crore to build bottling plants for Campa Cola, its ability to scale operations quickly, backed by financial strength, puts it in a strong position. While Coca-Cola and PepsiCo have not yet lowered their prices, the competitive pressure from Campa Cola may force them to adapt their strategies, whether through promotions or localized pricing.

The beverage landscape is set for an exciting transformation as Reliance’s Campa Cola continues to challenge established players in the market.