In a bold move to disrupt India’s snack industry, Mukesh Ambani’s Reliance Consumer Products (RCP) is gearing up to challenge established snack giants following its success in the cola segment. After driving competitive pricing in the cola market, RCP is now focusing on increasing trade margins on its snack brands—Snactac, Alan’s Bugles, and Independence—hoping to entice distributors and retailers and gain a stronger foothold in the FMCG sector.
Sources indicate that Reliance Consumer Products has raised trade margins significantly to appeal to super-stockists, distributors, and retailers. Super-stockists will now receive a margin of 6.5%, distributors 8%, and retailers up to 20%. Compared to competitors, who typically offer lower margins ranging from 3-5% for super stockists, 6-6.5% for distributors, and 8-15% for retailers, RCP’s enhanced margins are set to make their products highly attractive in the distribution chain. This strategy is poised to shake up India’s competitive snack market, incentivizing distributors and retailers to prioritize Reliance’s products.
Reliance Consumer Products’ foray into snacks follows its high-profile re-entry into the cola market with Campa Cola, which spurred competing brands to adjust their pricing. With increased trade margins, the company is determined to capture a substantial share in the FMCG sector, leveraging a model that emphasizes both affordability and distributor profitability.
Under Reliance Retail’s expanding portfolio, Reliance Consumer Products has launched a diverse range of brands designed to cater to a wide spectrum of consumers with unique, high-value offerings. Backed by extensive research, RCP aims to address evolving consumer needs while strengthening its presence across India.
Reliance Consumer Products has yet to officially comment on this development, though industry sources suggest that these margin increases are aligned with the company’s broader goal to dominate the FMCG landscape.