During the annual general meeting (AGM) of Reliance Industries on Monday, Isha Ambani announced that Reliance Retail is set to introduce its Campa brand to the global market, commencing its expansion in Asia and Africa.
Campa, a domestic contender against international cola giants Coca-Cola and PepsiCo within India, is poised to become the inaugural indigenous cola brand to venture into international markets.
“We are scaling it (Campa) up further in India, and have also started work to take it global, starting with Asia and Africa,” Ambani, Director at Reliance Retail Ventures, said in her address at the AGM.
Back in April, Reliance Consumer Products Ltd (RCPL), the FMCG segment of Reliance Retail Ventures, established a significant collaboration with Ceylon Beverages, a beverage can and filling company led by former cricketer Muttiah Muralitharan. This partnership was aimed at jointly producing and packaging Campa soft drinks. According to knowledgeable sources, this association is anticipated to play a crucial role in facilitating Campa’s expansion into international markets beyond India.
Ceylon Beverages has formed alliances with global, national, and local enterprises, encompassing manufacturers of mineral water, energy drinks, soft drinks, and fruit juices.
Reliance Retail had made the acquisition of Campa from the Pure Drinks group for an estimated INR 22 crore around the middle of the previous year. This heritage brand, originally introduced by the Indian company Pure Drinks in the 1970s, garnered significant popularity as the aerated drink with the memorable tagline ‘The Great Indian Taste’. Nonetheless, the brand’s standing dwindled following the entry of Coca-Cola and PepsiCo into the Indian market, capitalizing on the nation’s liberalization program.
“Campa is also exploring exclusive partnerships and alliances with other retail channels, besides setting up its own manufacturing plants which may also service markets outside of India,” said one of the executives, who did not wish to be identified.
Reliance, which initiated the expansion of Campa through retail channels earlier this year, is now taking the brand nationwide. However, the domestic soft drinks category encountered a notable setback in the important April-June quarter. This was due to unseasonal rains affecting business during the key summer months, which usually contribute to more than half of the annual soft drink sales.
On Reliance Retails’s overall FMCG plans, Ambani said, “This (FMCG) business made a strong start by entering several categories through multiple brands and strategic partnerships. A key pillar of our FMCG business is to make heritage Indian brands contemporary for today’s Indian consumers, keeping the age-old brand promise intact.”
Over the last year, Reliance has ventured into various daily packaged goods segments. These include introducing soft drinks like Campa, Sosyo, and Raskik, offering chocolates under the Lotus brand, entering the western snacks category through General Mills, introducing confectionery products under Toffeeman, offering biscuits under the Maliban brand, and launching home and personal care brands Glimmer and Dozo. To establish its presence, Reliance is strategically adjusting prices for entry-level packs to compete effectively with well-established FMCG manufacturers such as Coca-Cola, Britannia, Mondelez, and Hindustan Unilever.
In June, the company extended the reach of its grocery brand “Independence” to northern India. This expansion aims to offer a range of essential products such as staples, processed foods, soaps, detergents, and household hygiene items. The brand, initially introduced in Gujarat towards the end of the previous year, is committed to delivering locally crafted products at accessible price points.
Read More: Reliance’s FMCG arm to launch ice cream brand “Independence” in Gujarat market soon
Industry analysts predict that the company’s foray into mass-market segments like soft drinks, chocolates, and soaps could trigger price competition. However, displacing well-established brands in these sectors is expected to pose a significant challenge.
“RIL has huge financial muscle but FMCG players know how to deal with new entrants,” Nuvama Equities wrote in a report.
Read More: Reliance’s expanding reach could pose a significant threat to D2C FMCG brands, says Kantar research