Campa Cola challenge: Coke blinks first, cuts 200 ml bottle prices by Rs 5

This move comes at a time when demand for cold beverages increases as temperatures start to soar

Coca-Cola has reduced the prices of some of its lowest stock-keeping units in key states after Reliance Consumer Products reintroduced the 50-year-old iconic beverage brand Campa Cola into the cola market. The price cut comes at a time when demand for cold beverages increases as temperatures start to soar. 

Distributors that Business Standard spoke to said the 200 ml glass bottle of Coca-Cola, which earlier retailed at Rs 15, is now being sold at Rs 10 in Telangana, Maharashtra, and Madhya Pradesh. Campa Cola’s entry price point, too, is Rs 10 (for 200 ml of polyethylene terephthalate (PET) bottle)

Also, the crate deposit that retailers pay to store glass bottles is now being offered free. Crate deposits are typically between Rs 50 and Rs 100. A distributor explained that PET bottles go directly into the refrigerator, but with crates, the visibility at a store is greater as they are usually stacked up in the front.

A distributor said the contribution of glass bottles in his business is 7-8 per cent but he has been told to increase their contribution substantially to over 50 per cent by heavily pushing for glass bottle sales.

Coca-Cola India declined to reply to Business Standard’s query on slashing the prices of its glass bottles. PepsiCo India in an e-mail response to Business Standard said it has not reduced the consumer pricing of any of its stock-keeping units.

Campa Cola was acquired by Reliance Consumer Products last year from Pure Drinks reportedly for Rs 22 crore. The portfolio will initially include Campa Cola, Campa Lemon, and Campa Orange in the sparkling beverage category.

Campa Cola’s other stock-keeping units are priced at Rs 20 for 500 ml, Rs 30 for 600 ml, Rs 40 for 1 litre, and Rs 80 for 2 litre. These price points are much lower than the competition, including Coca-Cola and Pepsi. 

For example, Pepsi and Coca-Cola both sell their beverages in 250 ml PET bottles at Rs 20 and have priced the 2.25 litres PET bottles at Rs 99.   

Reliance Consumer Products has begun the roll-out of its cold beverage portfolio across the country, starting with Andhra Pradesh and Telangana.

According to a source, Reliance Consumer Products has a stronger supply chain in the southern markets and hence, it has started the distribution from these states. It is also expected to advertise heavily during the upcoming IPL season. 

In the October-December quarter, Coca-Cola saw strong growth in unit case volumes in India, the company said in its global earnings release.

The maker of the fizzy drink also saw its volume in developing and emerging markets decline to low single digits for the October-December quarter and grew mid-single digits for the year. “This performance benefited from strong growth in India and Brazil and was unfavourably impacted by the suspension of business in Russia,” it said in its release.