In a bid to counter the rapid expansion of Reliance Consumer Products’ Campa Cola in regional markets, global beverage giants PepsiCo and Coca-Cola are reportedly considering launching budget-friendly drink options. According to industry sources, the companies may introduce drinks priced 15-20% lower than their mainstream brands, particularly targeting regional consumers.
Reliance’s Campa brand has made inroads with competitive pricing and attractive trade margins, a move disrupting the duopoly enjoyed by Pepsi and Coca-Cola in India. With Campa priced at ₹10 for a 200 ml bottle and ₹20 for 500 ml, compared to Coca-Cola and Pepsi’s 250 ml bottles at ₹20, Reliance is aggressively positioning itself in the market. In response, PepsiCo’s largest Indian bottling partner, Varun Beverages, hinted at creating products to address this competitive pricing.
Coca-Cola, meanwhile, is scaling up the distribution of its ₹10 returnable glass bottles in tier-2 markets and evaluating the expansion of regional brands like RimZim, which offers unique flavours aimed at local preferences. This allows Coca-Cola to protect the value and margins of its flagship brands without diluting brand equity.
Reliance is not only competing on price but also enticing distributors with higher trade margins of 6-8%, compared to 3.5-5% offered by PepsiCo and Coca-Cola. Tata Consumer Products’ MD, Sunil D’Souza, noted the significance of Reliance’s pricing strategy, stating that despite similar retail prices, Campa’s favourable trade margins create a competitive edge that impacts industry dynamics.
As competition intensifies, both Pepsi and Coca-Cola are likely to deploy regional promotions and strategic pricing adjustments to retain their market share amid Campa’s ascent in India’s soft drink landscape.