Reliance, headed by billionaire Mukesh Ambani, owns Campa Cola, and plans to dive head first into the soft drink market as it plans to revive the 50-year-old homegrown brand and take on industry leaders Pepsi and Coca-Cola, ahead of the upcoming festive season.
Mukesh Ambani Campa Cola: Mukesh Ambani, the chairman of Reliance Industries and the richest man in Asia, is betting big on the soft-drink market, and is planning to disrupt the space by using the same method he employed in the telecom market with his Reliance Jio. The business magnate plans to revive India’s homegrown cola brand – Campa Cola – and take on market leaders Coca-Cola and Pepsi.
Mukesh Ambani ‘Jio’ strategy
Mukesh Ambani, known for his innovative business acumen, which has brought him great success in other ventures, especially the telecom sector, is planning to employing the same business strategy he used with the launch of Reliance Jio — by starting a price war, which is expected to drastically bring down the prices of soft drinks, akin to what happened when he did the same with Jio.
Mukesh Ambani’s Reliance has acquired Campa Cola, and plans to dive head first into the soft drink market as it plans to revive the 50-year-old homegrown brand and take on industry leaders PepsiCo and Coca-Cola, ahead of the upcoming festive season.
Reliance has slashed the prices of Campa soft drinks, essentially starting a price war in the space, which will inadvertently force its competitors to do the same, which is great news for consumers.
Notably, Mukesh Ambani employed the same strategy to conquer the telecom sector when he launched Reliance Jio in 2016, forcing many of his competitors like Aircel, Vodafone, Idea, and Uninor, etc out of the business, while significantly reducing the market share of others including then industry leader Airtel, and state-owned BSNL.
The soft-drink wars
If Mukesh Ambani’s Jio strategy works, Coca-Cola and PepsiCo, who dominate the soft-drink market, sitting comfortably at the first two positions, respectively, are in a fight for survival, as was proved by Reliance in the telecom space.
Reliance’s aggressive prices of Campa, and its expansion of the brand into southern states and West Bengal, has evidently caused a stir within Coca-Cola and Pepsi, who have started to accelerate their consumer promotions at grocery stores and quick commerce platforms. Indi’s soft-drink market, valued at Rs 50,000 crore, is up for an interesting turn as industry leaders gear up to fight newcomer Campa backed by Reliance’s vast fortune.
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