Mukesh Ambani’s Reliance forming a new camp for pushing Campa Cola
- Reliance had held discussions to acquire a majority stake in Kali Aerated Water Works before it bought Campa in August 2022
Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited is in advanced talks with leading Chennai-based Bovonto soft drinks maker Kali Aerated Water Works for a manufacturing and distribution partnership to make and sell Reliance's Campa soft drinks range, according to a report by Economic Times.
Reliance had held discussions to acquire a majority stake in Kali Aerated Water Works before it bought Campa in August 2022.
Kali Aerated, which also makes lemon, orange and ginger ale fizzy drinks, has more than eight plants in the South. It also sells juices and tender coconut water, the report said.
Controlled by billionaire Mukesh Ambani, Reliance had launched revamped Campa drinks in March this year, sugary sodas popular in India in the 1970s and 1980s before disappearing from shelves as the US giants expanded rapidly in a liberalising economy.
"Coca-Cola and Pepsi are unused to a nationwide challenge, and Reliance has the financial muscle and reach to challenge them with a local brand with high nostalgic value," said Amulya Pandit, a consultant at Euromonitor International.
A person with direct knowledge of Reliance's plan said it aims to open some factories of its own or as joint ventures to make Campa, and take the soda to hotels, restaurants and in-flight sales. Production of Campa is currently outsourced, after its $2.7 million acquisition of the brand last year.
The company is heavily discounting in-store prices. A two-litre Campa Cola bottle is priced at 49 rupees (60 US cents) in stores, a near 50% discount on its label price, and around a third lower than 2.25-litre Coke and Pepsi variants, a Reuters check showed. The smallest bottles of Campa Cola and Coke both cost 10 rupees, while Pepsi starts from ₹12.
"The price will be disruptive across," said the person, who added Reliance is planning an advertising spree during the upcoming popular IPL cricket tournament and is in talks with at least three teams to make Campa their refreshment partner.
With agency inputs
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First Published:10 Apr 2023, 03:42 PM IST
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