MUMBAI: Reliance is taking beverage brand Campa global with its launch in the UAE, broadening the firm’s play in the segment and stepping up competition against Coca-Cola and PepsiCo which have been nudged to revisit their strategies in India after Campa’s entry into the local market at cheaper price points. Campa’s play in the UAE market where it has forayed in partnership with Abu-Dhabi based Agthia Group will also be centred around competitive pricing, sources said.
In the UAE, Reliance Consumer Products (RCPL) which houses Campa is betting on a large community of Indian expats besides young local consumers. Campa’s UAE debut also marks RCPL’s entry into the region.
Reliance acquired Campa from its makers Pure Drinks Group for Rs 22 crore in 2022, reviving the brand which was first launched in India in the 1970s and which dominated retail shelves until competition from foreign brands started reducing its appeal among consumers. Reliance has since scaled the brand which currently has more than 10% market share in the local sparkling beverage category in select states and is projected to cross Rs 1,000 crore in turnover in FY25.
Ketan Mody, COO at RCPL said that the company is investing in UAE for the long-term and sees potential for “accelerated” growth in the region. “We’re confident it (Campa) will introduce a new wave of fans to its refreshing taste across all consumers in the UAE and spark nostalgia amongst Indian expats connecting them to their roots,” Mody said in a statement on Tuesday. Besides global giants Coca-Cola and PepsiCo, Campa’s UAE foray will also pit it against local brands in the region like Star Drinks.
In India, Campa’s low pricing has disrupted the cola market. For all pack sizes, Campa is offering lower rates to consumers with a price differential of Rs 5-20. Coca-Cola, for instance, has slashed the price of its 400ml PET bottles to Rs 20 from Rs 25 in certain states like Kerala, TOI had reported in October last year. In an earnings call last year, PepsiCo’s India bottling partner Varun Beverages had said that if the market situation warrants, they will come up with a range that can fight Campa’s pricing.