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New Delhi: Once upon a time, the Indian Fast-Moving Consumer Goods (FMCG) market was flooded with indigenous soft drinks, the most prominent being Campa Cola, from the house of Pure Drinks Group. It was a runaway hit with the consumers across the spectrum.
The 1991 economic reforms of the liberalisation policy under the command of PV Narasimha Rao presented the foreign players, mainly Pepsi and Coca-Cola and that was the end of the “desi thanda”.
Now, Mukesh Ambani, the chairman of Reliance Industries, has taken it upon himself to bring back Campa Cola which was acquired for Rs 22 crores in 2022. The soft drink is prepared to make a roaring comeback and take on two of the biggest powerhouses, Coca-Cola and PepsiCo.
Pure Drinks Group, founded by Mohan Singh in the 1970s, introduced Campa Cola and within no times, it became a household name and ruled the FMCG market during the 1970s and 1980s. earlier, in 1949, the Pure Drinks Group introduced Coca-Cola to India in 1949 and held exclusive distribution rights until the government’s nationalization of the soft drink industry in the 1970s.
Campa Cola and the other products of its parent company dominated the market for almost 20 years. The brand’s slogan, “The Great Indian Taste” had a patriotic appeal that resonated with nationalistic sentiments and the Indian consumer embraced it.
It offered a range of flavours like Campa Orange and Rush, aimed at the younger consumers.
As mentioned above, the economic reforms of 1991 and the liberalisation policy of the PV Narasimha Rao-led government unleashed two biggest foreign players, Pepsi and Coca-Cola and that was the end of Campa Cola. Not only they packaged their beverages in glass and PET bottles, but also introduced canned drinks. Before this, Pepsi and Coca Cola cans were imported and worked as status symbols.
This was too much for the Indian brand to handle and it slowly buckled under the competition.
By the fag end of the 90s, it was clear that the market will be captured by the foreign brands, and at the turn of the century, Campa Cola’s bottling plants ceased operations. Within a few years, the brand was largely forgotten.
In 2022, Reliance Industries purchased Campa Cola for Rs 22 crores, signaling the start of its resurgence. The company introduced three flavors: cola, orange, and lemon, which were made available in select outlets. On March 9, 2023, Reliance Consumer Products Ltd (RCPL) declared the official relaunch of the Campa brand.
Reliance is set to utilize its vast distribution network and financial prowess to disrupt the soft drink industry. Known for its aggressive pricing strategies, the company offers retailers higher margins, which may significantly impact the market.
Coca-Cola and PepsiCo are the current leaders in India’s USD 4.6 billion soft drink market. Despite this, the market is projected to expand by five percent annually until 2027, and Reliance is well-placed to secure a substantial market share.
With its robust financial resources and distribution network, Reliance presents a serious challenge to the incumbent brands. Industry experts suggest that Reliance’s rapid scaling capabilities, along with its nostalgic appeal, have the potential to alter the existing market dynamics.
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