😯 RIL's Campa Cola Killing Coca-Cola?

RIL has entered yet another interesting space: soft drinks. What does this mean for Coca-Cola and Pepsi? ReadOn!

We have seen enough revenge reincarnation stories in movies and TV shows.

It's now time for the FMCG space to have its own ‘Karz’ (a revenge reincarnation bollywood movie) moment, thanks to Reliance.

RIL is bringing Campa Cola back from the dead. It launched this legacy soda last week.

Now, Gen Z may not have heard of it. But mention it to your parents and you will see a gleam of nostalgia in their eyes.

And that nostalgia could be fatal for other soda brands (like Cola-Cola) out there.

In fact, some brands are already spooked.

But why did Reliance launch Campa Cola? And what does this mean for other colas and sodas out there?

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📖 The History of Campa Cola

Before we get into RIL’s current deal, let's get into the history of Campa Cola.

Back in 1949, Pure Drinks introduced Coca-Cola in India. 

It was the only manufacturer and distributor of the drink in India.

But, in 1977, Coca-Cola was forced to go on a 16-year vanvaas (exile) from India as it violated the Foreign Exchange Regulation Act. 

According to the Act, foreign companies were required to dilute 40% stake in their Indian subsidiaries (you can read more about this law here). 

Now, Pure Drinks rushed to fill Coca-Cola’s shoes by launching Campa Cola: a drink that tasted and looked just like Coca-Cola.

Not just that, it introduced several other soda flavours like orange, lemon, and jeera masala.

And with Coca-Cola gone, it didn’t have to fight for a space on store shelves.

Campa Cola instantly became people’s go-to Coke alternative.

Now, other drinks like Thums Up and Gold Spot also came up at the time, but Campa Cola enjoyed a decent market share.

Until…

1993, when Coca-Cola re-entered India with its aggressive marketing campaigns (as the government opened up the economy to foreign investments). 

While Thums Up survived because of its unique taste, demand for Campa Cola died down.

After all, it was just a copycat product.

It died a slow death, finally shutting down in 1999.

So why did Ambani buy this dead brand?

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🧠 RIL’s Game Plan

Reliance has entered the FMCG space with a lot of fanfare.

And instead of sitting and creating a host of products from scratch, it is taking a shortcut: acquiring existing brands.

Campa Cola is one such brand which RIL acquired for Rs. 22 crores. The brand may be dead but it still has the formula for the cola concentrate that tastes similar to Coca-Cola. It is this formula that could be a win for Reliance. 

But why relaunch a failed brand?

You see, fighting a brand like Coca-Cola or Pepsi is going to be difficult.

If RIL launches a new brand, it will not only have to get a fair share on store shelves and TVs, but also have to gain customers’ mind share.

And in a country where thanda matlab Coca-Cola, this is going to be an almost impossible task.

RIL knows this, because believe it or not, it already has its own personal soda brand called “Yeah!”

If you have not heard of it, you just kinda proved our point.

So, to win in the soda race (or the entire FMCG race), RIL will have to bank on brands that do have some sort of recall and scale them.

That’s why Campa Cola. 

Lots of customers know about it. Even though back in the day, they chose Coca-Cola over it (because it was the new thing back then), the power of nostalgia and desire for the good old days will probably convince many to try Campa Cola.

But will this nostalgia be enough for Campa Cola to become a regular in refrigerators?

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🤨 Will Campa Cola Succeed?

Well, RIL is trying its best to ensure this happens. And it has several advantages.

Campa Cola, unlike Pepsi and Coke, is an Indian company.

And with the current wave of self-reliance and aatmanirbharta, many Indians may choose Campa Cola instead of Coca-Cola.

What’s more, Reliance Retail already has JioMart and a network of 17,225 stores. So, distribution won’t be a problem.

Plus, we have already seen how good Ambani is at burying competition.

Jio managed to completely disrupt the telecom sector with its dirt cheap prices. 

It's replicating this strategy here as well. 

A 200 ml Campa Cola bottle is priced at Rs. 10, whereas a Rs. 200 ml glass bottle of Coca-Cola costs Rs. 15 (in Telangana, Madhya Pradesh, and Maharashtra). 

Now, Coca-Cola is not one to stand on the sideline and watch competition grow. With a lot of money in its coffers, it has also reportedly reduced the price of its 200 ml glass bottle to Rs. 10!

Coca-Cola is also reportedly asking distributors and retailers to stock up on more glass bottles. It is apparently also removing the crate deposit that retailers have to pay. 

Wait, why? 

You see, glass bottles are stored in refrigerators, usually away from sight. 

But crates are right out there where they catch everyone's eyes. Even if the crate contains empty bottles, the brand name is enough to keep the brand on consumers' minds. 

So, Coca-Cola is going to give tough competition to RIL. It could become a major barrier to Campa Cola's take-off. 

So, who will win: Campa Cola or Coca-Cola? And have you tried Campa Cola yet?

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