Reliance Industries, through its FMCG arm RCPL, has reignited the cola wars with the revival of Campa Cola. This aggressive entry into the soft drinks market, marked by lower prices and higher margins for retailers, has caused major players like Coca-Cola, PepsiCo, and Tata Consumer Products to reevaluate their strategies. Tata Consumer Products’ Managing Director, Sunil D’Souza, acknowledged the disruption, highlighting how Campa’s pricing strategy is forcing competitors to respond.
RCPL’s approach, offering products at nearly half the price of its rivals, is particularly impactful in rural markets where price sensitivity is high. Additionally, leveraging its vast retail network through Reliance Fresh, Jiomart, and more, the company ensures wide availability of Campa Cola at attractive margins for local retailers, boosting sales in kirana stores nationwide.
Campa Cola’s aggressive tactics have compelled Tata Consumer Products, which offers beverages like Tata Gluco Plus, to lower its prices. D’Souza noted that Tata’s prices to retailers were about 30% higher than competitors, emphasizing the pressure on multinational giants like Coca-Cola and PepsiCo to remain competitive.
With the festive season underway, RCPL intensified marketing efforts, especially during the Durga Puja festival in West Bengal, where Campa Cola was offered at rates significantly lower than its rivals, amplifying its impact in key markets. As Reliance continues to expand Campa Cola’s reach, particularly in regions like West Bengal, Bihar, and Uttar Pradesh, the competition in the Indian soft drink market is set to heat up further.
Reliance’s disruption strategy is not just limited to pricing; it taps into nostalgia by reviving Campa Cola, a beloved brand from the 1970s and 80s. After acquiring the brand last year, Reliance has successfully repositioned it as a challenger to American giants Coca-Cola and PepsiCo, appealing to nationalist sentiments and leveraging its unmatched retail infrastructure.
Industry experts believe Reliance’s foray into the $4.6 billion Indian soft drinks market could significantly threaten the duopoly of Coca-Cola and PepsiCo. The battle is expected to intensify as competitors devise strategies to counter the Campa Cola craze, with no clear signs of slowing down.