In the 2023 Reliance annual general meeting, Reliance Retail's Director Isha Mukesh Ambani said that they are working to take the Campa Cola brand global, "starting with Asia and Africa"
Reliance Industries is set to take its soft drink brand Campa Cola global, starting with its first export to West Asian nations. Reliance Industries' FMCG arm, Reliance Consumer Products (RCPL), aims to take advantage of the boycott of American products and replicate its low product pricing strategy.
Reliance Retail, the parent firm of Reliance Consumer Products (RCPL), first announced the move to expand Campa Cola in 2023. A new report by the Economic Times (ET) says Campa Cola's consignments have now reached retail stores in Bahrain. The firm plans to export to more West Asian countries, like Oman and Saudi Arabia, in phases.
Reliance Consumer Products is also looking to partner with a local entities to bottle the soft drink in countries like Saudi Arabia and the United Arab Emirates as it moves forward with its expansion plan, the ET report said. For now, Campa Cola will be exported from India.
In the 2023 Reliance annual general meeting, Reliance Retail's Director Isha Mukesh Ambani said that they are working to take the Campa Cola brand global, "starting with Asia and Africa."
Two years onwards, now seems to be the right time to move forward in West Asia. The region has seen a rise in anti-West sentiment amid the ongoing Israel-Gaza conflict. Many Western brands, especially those from America, are facing boycott calls, and consumers are embracing local or other brands.
American beverage giants PepsiCo and Coca-Cola are also facing the heat, with a market researcher stating that Western beverage brands may have suffered about 7% sales declines in the first half of 2024. According to an ET report, Reliance expects to benefit from this boycott.
To rapidly expand in West Asia, Reliance aims to use the same strategy of selling at lower prices and offering higher margins that it used in India. Reliance acquired the once-popular Campa Cola brand in 2022 from New Delhi-based Pure Drinks Ltd for Rs 22 crore. To revive its presence in India, Reliance utilised an aggressive pricing method and vast retail network.
Reliance Consumer Products (RCPL), the fast-moving consumer goods (FMCG) arm of Reliance, achieved impressive sales of Rs 3,000 crore in FY24, its first full year of operations. Notably, Campa Cola emerged as a star performer, contributing Rs 400 crore to RCPL's sales, demonstrating its significant potential.
Analysts say listed beverage-FMCGs such as Dabur, Tata Consumer, and Varun Beverages, which bottle and sell PepsiCo products, are feeling the heat from Campa. Tata Consumer admitted that Campa has "disrupted the industry" by using a price point that is "not sustainable."