The return of Campa Cola has brought a major change in the soft drink sector in India. Coca-Cola and PepsiCo are competing for market share in the Indian market.
When Coca-Cola and PepsiCo were not in India, the Campa-Cola brand was a major presence. With Reliance's entry into the fast-moving consumer goods (FMCG) space, the brand was acquired by Reliance Retail in 2022, ushering in a paradigm shift in the soft-drink space. Reliance Group bought the Campa Cola brand for Rs 22 crore.
In 2023, Campa Cola is back on the market with the addition of two new flavours. With the financial backing of a powerful company called Reliance Industries, Campa Cola has adopted the model of price reduction to capture its market share. 200 M compared to the price of other brands. A bottle of Campa Cola is priced at Rs. 10 and Rs. 500. It is available in the market at Rs 20 per litre.
Usually about 200 ml. While L bottles are available for ₹20, the price of Campa Cola has been reduced by 50%. Against this, Coca-Cola and PepsiCo came up with promotional prices for larger bottles. However, Parthasarathy Reddy Bokkala, Lead Consumer Analyst, GlobalData, said that the price war did not affect other brands in the initial phase as Campa Cola's supply chain was low.
With the increase in distribution of Campa Cola to hundreds of centres, this situation has changed. Smaller prices and wider supply impacted sales of Coca-Cola and PepsiCo. With this, both these companies were forced to come up with more offers and promotions. Francis Gabriel Goddard, Manager, Consumer Business Development, GlobalData India, said:
How Campa Cola took over the market
With the income constraints of consumers in India, people have turned to lower-priced options.
The demand for healthy drinks is on the rise. The return of Campa Cola has created major changes in the Indian soft drink market. This has become a growing sector.