In the bubbling world of carbonated soft drinks (CSD), things are heating up. Reliance Consumer Products Ltd. (RCPL) is intensifying the cola wars with its aggressive pricing with the Campa Cola brand, undercutting market leaders Coca-Cola and PepsiCo. Just ahead of the festive season, Campa Cola’s entry into the Indian market has disrupted the status quo, offering its products at significantly lower prices than its rivals, positioning itself as a strong contender in India’s fizzy beverage market.
Disruptive pricing strategy
The key to Campa's aggressive market entry lies in its pricing strategy. The brand is offering 200ml bottles at just ₹10, while Coca-Cola and PepsiCo sell their 250ml bottles for ₹20. Furthermore, Campa’s 500ml bottles are priced at ₹20, in contrast to Coca-Cola and PepsiCo’s which retail between ₹30 and ₹40. This disruptive pricing has enabled RCPL to grab consumer attention and quickly gain a foothold in a market long dominated by its multinational competitors.
The ripple effects of Campa’s entry are already being felt. While Coca-Cola and PepsiCo have refrained from cutting prices, they are stepping up promotional efforts, especially through bundling and tactical promotions at local retailers and on quick-commerce platforms. Yet, matching Campa's pricing may be inevitable. Else they risk losing market share. “Failure to address this competitive landscape could lead to a market share loss for incumbents,” a report by Nuvama Research notes. This leaves Coca-Cola and PepsiCo in a tight spot, as any price cuts could hurt profitability but might be necessary to retain their market dominance.
“Campa's pricing is lower than the big players, and on e-commerce platforms like JioMart, it is priced even lower, making it the most affordable cola option,” says the report. This aggressive pricing is part of Reliance’s broader strategy to expand its FMCG portfolio, as the company works to build a competitive edge in India’s fast-moving consumer goods sector.
Expanding market reach
Campa’s launch has been carefully orchestrated to target key growth markets. The cola is being rolled out across southern states, West Bengal, Bihar, Odisha, and parts of Uttar Pradesh. These regions offer fertile ground for growth, and Campa’s value-for-money proposition could resonate with consumers looking for affordable alternatives to the pricier Coca-Cola and PepsiCo products.
Reliance initially launched Campa in Andhra Pradesh, Telangana, and Gujarat in 2022. According to the Nuvama report, these regions contribute almost one-fifth of the total beverage sales in India, with Andhra Pradesh and Telangana becoming particularly significant markets for Campa. In just a year, the brand has achieved sales worth ₹150–₹200 crore in these two states alone, signalling its potential to shake up the national market.
Campa has managed to establish a presence in over 100,000 kirana outlets across Andhra Pradesh and Telangana, says Nuvama. This kind of distribution network underlines Reliance’s intent to build a deep and sustainable retail presence.
Moreover, the introduction of Campa comes at a time when beverage companies are already grappling with seasonal challenges. The heavy rains in Q2FY25 have dampened demand for cold beverages, exacerbating the competition. Varun Beverages, a key PepsiCo bottler in India, has forecast a modest 8% year-on-year volume growth for India due to weather conditions. Meanwhile, Dabur’s juice business is expected to take a hit, further intensifying the competition in the overall beverage market.
RCPL’s broader FMCG ambitions
The aggressive push for Campa is part of RCPL’s larger ambition to dominate the FMCG landscape. Reliance aims to increase its outlet reach from 1 million to 1.5–2 million in the next six to eight months, with a long-term goal of reaching 10 million merchants in five years, covering over 80% of India’s kirana store base. To support this expansion, RCPL plans to set up three to four new bottling units for Campa, adding to its existing network of seven to eight external bottlers.
Moreover, Mukesh Ambani’s intent to scale up its FMCG operations is evident from its growing distribution network and investment in localised infrastructure. The company’s focus on affordable pricing, paired with its distribution reach are intended to capture a significant portion of India’s cola market.
For now, Reliance’s foray into the fizzy drinks market is gaining traction, and the coming months will reveal just how much fizz it can bring to the cola war.
