A cola price war is heating up as Reliance Consumer Products (RCPL) expands its Campa soft drinks range at half the price of Coca-Cola and PepsiCo brands, ahead of the festive season. This aggressive pricing has prompted Coca-Cola and PepsiCo to increase consumer promotions, although they have yet to cut prices.
Industry experts suggest Coca-Cola and PepsiCo are focusing on tactical promotions through grocery stores and quick-commerce platforms to counter the threat. However, there is growing pressure to either lower prices, which could impact profitability, or risk losing market share to the lower-priced Campa.
RCPL, which entered the Indian soft drinks market in 2022, is scaling up its Campa brand in new regions, including southern states, West Bengal, Bihar, Odisha, and parts of Uttar Pradesh. Campa’s pricing strategy, offering products at 30–35% lower prices than competitors, reflects Reliance’s consumer-centric approach. For instance, Campa’s 250-ml bottles sell for Rs 10, while Coca-Cola and PepsiCo offer the same size for Rs 20.
Despite the competition, PepsiCo’s bottling partner Varun Beverages remains optimistic. Chairman Ravi Jaipuria noted that India’s large market has room for new players, predicting that increased investment would drive overall market growth.
As soft drink companies gear up for the October-December festive season, the cola price war is expected to intensify, with the bottled soft drink category already expanding by 19% in 2024.