Campa Cola acquired by Reliance Industries in 2022 for Rs 22 crores. In some selected stores, the Reliance Retail Ventures launched three variants of the drinks (cola, orange and lemon).
New Delhi: Mukesh Ambani owned Reliance Industries through its consumer goods (FMCG) arm Reliance Consumer Products Ltd (RCPL), is all set to revive one of the renowned soft drink brands in India Campa Cola, challenging already established players like Coca-Cola and PepsiCo. According to The Economic Times report, the company is planning an aggressive pricing strategy and higher margins for retailers and also leveraging its vast financial strength and distribution network to disrupt the market.
Reliance who is known for its pricing strategy has shaken the entire 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.
History of Campa Cola:
Campa Cola was one the biggest soft drink brands in India back in 1970s and 1980s. A known household name, Campa Cola was famous in most regions of India until the advent of the foreign players Pepsi and Coca-Cola after the liberalisation policy of the P. V. Narasimha Rao government in 1991. Owned by Mohan Singh in the 1970s, the Campa Cola was a drink created by the Pure Drinks Group.
Pure Drinks Group was considered to be a giant in the Indian soft drink industry who introduced Coca-Cola to India in 1949. They held exclusive rights as the manufacturer and distributor of Coca-Cola until the 1970s, when the soft drink industry was nationalized to promote Indian interests.
Here are some of the key details:
- For about 15 years, the Pure Drinks Group and Campa Beverages Pvt. Ltd. dominated the entire Indian soft drink industry.
- Due to the absence of foreign competition, Pure Drinks Group started Campa Cola.
- The brand’s slogan was “The Great Indian Taste”, an appeal to nationalism.
- During the 1980s, Campa Orange and Rush were the two main orange soft drinks in India, with large bottling plants in Mumbai (Worli) and Delhi.
- Following the return of foreign corporations to the soft drink market in the 1990s, the popularity of Campa Cola declined.
- In 2000–2001, its bottling plant and offices in Delhi were closed.
- In 2009 a small amount of product was still being bottled in the state of Haryana, but the drink was still not commonly found.
Reliance Acquires Campa Cola
Campa Cola acquired by Reliance Industries in 2022 for Rs 22 crores. In some selected stores, the Reliance Retail Ventures launched three variants of the drinks (cola, orange and lemon). On March 9, 2023, the Reliance Consumer Products (RCPL), a subsidiary of Reliance Retail Ventures (RRVL) announced the relaunch of the Campa brand.
Reliance Industries (RIL) has also acquired soft drink brand Sosyo from Surat-based Hajoori. Reliance Consumer Products Ltd (RCPL) announced it would acquire a 50 percent equity stake in Gujarat-headquartered Sosyo Hajoori Beverages Pvt Ltd (SHBPL). The company owns and operates a beverage business under the flagship brand ‘Sosyo’. Existing promoters, the Hajoori family, will continue to own the remaining stake in SHBPL.
A threat to Coca-Cola and PepsiCo?
Coca-Cola and PepsiCo dominate the major chunk of India’s USD 4.6 billion soft drink market.
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.