What’s the reason for Mota Bhai’s $8.85B move to revive 50-year-old CamPa Cola?
Reviving a 50-year-old company that once dominated the Indian soft drink industry may seem like an odd move, but for Mukesh Ambani and Reliance Industries, it’s a strategic one.
With the soft drink market estimated to be worth US$8.85bn and Coca-Cola and Pepsi holding a significant market share, Reliance’s move to revive Campa Cola is aimed at breaking the duopoly and gaining a foothold in the market.
The initial plan is to launch Campa Cola in Andhra Pradesh, the state with the largest customer base for Coca-Cola’s Thums Up in India.
Reliance plans to price Campa Cola lower than its competitors, which has already forced companies like Coca-Cola and PepsiCo to offer discounts on their products.
This move is in line with Reliance’s larger vision of dominating the FMCG market with homegrown brands, and Campa Cola fits perfectly into this strategy.
By marketing Campa Cola as a homegrown brand, Reliance can create an emotional appeal for customers, giving the brand an edge over its multinational competitors.
Campa Cola is not the first homegrown brand to be revived by Reliance, and it will not be the last. Reliance’s larger vision is to disrupt various markets with its homegrown brands and gain a significant share of the FMCG pie