Campa Cola's comeback: How Reliance is shaking up India's drink market

Reliance Industries, through its fast-moving consumer goods (FMCG) arm Reliance Consumer Products Ltd (RCPL), is rewriting the playbook in the Indian beverages market with the revival of Campa Cola. Once a household name in India, Campa Cola is now emerging as a serious contender, challenging established players like Coca-Cola and PepsiCo.

With an aggressive pricing strategy and higher margins for retailers, the Mukesh Ambani-owned company is leveraging its vast financial strength and distribution network to disrupt the market, reported The Economic Times.

 

Campa Cola’s aggressive pricing strategy

Reliance's pricing strategy has made waves across the industry, forcing even rivals like Tata to rethink their game plan. Offering retailers significantly higher margins on its Rs 10 pack, Campa Cola has pushed competitors to reconsider their pricing models.

Reliance’s strategy isn’t just about low prices—it’s about aligning with local retailers. By offering higher trade margins to local kirana stores and small retail outlets, Campa Cola has gained prime shelf space in the country's fragmented retail sector. This approach aligns the company’s interests with those of local retailers, giving Reliance a powerful edge in expanding its market presence across India.

Tata's response to Reliance's disruption

The shake-up has been felt across the industry. Tata Consumer Products, which offers its own beverage line with Tata Gluco Plus, had to adjust its prices after Reliance’s aggressive pricing tactics. Tata initially charged retailers about 30 per cent more than its competitors and 20 per cent above multinational giants. However, the pressure from Campa Cola’s attractive retailer margins forced Tata to adjust its prices to maintain its market share.

Campa Cola’s impact during the festive season

With the festive season in full swing, Reliance intensified its marketing and distribution efforts. During the recent Durga Puja celebrations in West Bengal, Campa Cola took centre stage by offering unbeatable prices. While Coke and Pepsi sold their 600 ml bottles for Rs 40, Campa Cola priced its 200 ml and 500 ml bottles at Rs 10 and Rs 20, respectively, capturing the attention of budget-conscious consumers.

This lower pricing has resonated not only in urban centres but also in rural markets, where affordability plays a significant role in purchasing decisions. By offering products at nearly half the price of its competitors, Reliance is tapping into the price-sensitive regions of India, gaining a strong foothold in both urban and rural markets.

A well-executed strategy

Reliance's disruption strategy goes far beyond pricing. The company is also banking on nostalgia. Campa Cola, a brand that once ruled Indian households in the 1970s and 80s before Coca-Cola and PepsiCo entered the scene, is being positioned as a nostalgic, homegrown alternative to the American giants. Reliance acquired the brand for Rs 22 crore last year from Pure Drinks Group and is now marketing it as a national challenger with deep local roots.

This emotional appeal, combined with Reliance’s unmatched retail network—which spans Reliance Fresh, Reliance Smart, and Jiomart—gives Campa Cola a formidable platform to grow. The reach of Reliance’s retail presence, coupled with its aggressive marketing and affordable pricing, has allowed Campa Cola to rapidly gain traction.

A threat to Coca-Cola and PepsiCo?

India's $4.6 billion soft drink market has long been dominated by Coca-Cola and PepsiCo, but Reliance's entry is now causing a stir. Euromonitor estimates the market will grow by five per cent annually until 2027, and with Reliance’s financial muscle, the company is well-positioned to capture a significant slice of this growth.

According to experts quoted by ET, Reliance’s combination of financial power and distribution reach makes it a unique threat to the American giants. More than nostalgia and pricing, it is Reliance’s ability to scale quickly that gives it a crucial advantage.

RCPL, which generated Rs 3,000 crore in sales during its first full year of operations, is already planning to invest between Rs 500 crore and Rs 700 crore to establish bottling plants for Campa Cola. This move is expected to further boost the brand’s capacity and reach, enabling Reliance to address any supply constraints as it expands.