Reliance Consumer Products brings back iconic Indian brand Campa Cola to compete with beverage giants

Reliance's FMCG arm, Reliance Consumer Products, revives the iconic Indian brand Campa Cola to compete with multinational beverage giants.

Mar 12, 2023 - 02:33
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Reliance Consumer Products brings back iconic Indian brand Campa Cola to compete with beverage giants

After almost three decades, the legendary Campa Cola brand has returned. Reliance Consumer Products Ltd, a subsidiary of the Reliance Group, is introducing the Campa brand across the country in cola, lemon, and orange flavors through its own stores and local small shops. It appears to be a remarkable resurgence - the brand that was wiped out by multinational giants Coca-Cola and Pepsi many years ago is making a comeback, with greater strength and influence, to regain its position.

Campa is a crucial element in Reliance's broader FMCG strategy, aimed at revitalizing legacy brands while also developing new ones to tap into the immense Indian market. Reliance has clearly indicated that the introduction of Campa aligns with "the firm's approach to elevate indigenous Indian brands, which not only carry a profound heritage but also feature a strong emotional bond with Indian customers because of their distinctive tastes and flavors."

As a part of its FMCG expansion plan, Reliance is acquiring once-popular regional as well as heritage brands. Campa is among the various consumer products that Reliance is building its portfolio around through the purchase of such iconic brands. In January of this year, Reliance acquired a 50% stake in Sosyo Hajoori Beverages, a company based in Gujarat, for an undisclosed amount. With a legacy spanning approximately a century in the carbonated soft drink and juice industry, Sosyo was founded in 1923 by the Hajoori family. The Sosyo brand has a dedicated following in its native Gujarat state. In addition to this, Reliance's portfolio includes Lotus Chocolate from the Pai family, Sri Lanka's top biscuit brand Maliban, as well as its own JoyLand confectionery, and food brands like Independence and Good Life, which are all integral components of its portfolio.

Reliance aims to rekindle the love for the iconic brand by reimagining Campa in a fresh and contemporary avatar, appealing to consumers of all ages. "While older members of the family will fondly remember the original Campa and cherish the nostalgic associations with the brand, younger consumers will relish the crisp and refreshing taste. With an ever-changing Indian market creating more consumption opportunities, we are thrilled to reintroduce Campa, which is yet another bold stride forward for our expanding FMCG business," stated a spokesperson from Reliance Consumer Products, the newly established FMCG flagship.

However, this may not be an easy task. Pure Drinks attempted to resurrect Campa Cola several times, with the final attempt in 2019 proving unsuccessful due to a lack of financial resources to compete with the American beverage giants. However, financial resources alone do not ensure a successful brand revival. Established players can also struggle to revive a brand. For example, Coca-Cola acquired RimZim from Parle Bisleri in 1994. The carbonated drink, flavored with jeera (cumin), was originally launched in the 1980s and had a niche following. Coca-Cola relaunched the brand in 2018 after years of anticipation, but it failed to gain traction. It appears that nostalgia, coupled with financial power, may not be sufficient to revive an old brand.

Reliance possesses both the financial resources and expertise to introduce a new brand into the market. The timing of the Campa Cola launch is noteworthy, as Reliance chose to coincide the release with the Indian Premier League (IPL), a time when advertising and sales typically surge. Although Reliance has not disclosed the pricing, a report says that Campa Cola will be reintroduced at price points up to 15 or lower than Coca-Cola and PepsiCo brands across five different pack sizes, indicating an upcoming aggressive price competition during the summer season. Reliance Retail Ventures, the holding company for all retail businesses under Reliance Industries, boasts a network of 17,225 stores as well as e-commerce platforms such as JioMart.

Reliance is introducing Campa Cola to the market at a time when the industry is undergoing changes. Coca-Cola is allocating more resources to advertising as it seeks to make its business less seasonal. PepsiCo is also expanding its non-seasonal offerings, including energy and sports drinks such as Sting and Gatorade, respectively, to sustain demand during the off-season. The return of Campa Cola coincides with a shift among consumers away from sugary beverages, as an increasing number of healthy drink options are introduced to the market. The success of Paperboat, a company that specializes in ethnic drinks like aam panna, is an example of how the rising health consciousness among consumers is driving demand.

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