Reliance set to take Campa Cola portfolio nationwide in 3 weeks - The Economic Times

Reliance Consumer Products (RCPL) is readying to take the Campa Cola portfolio national in the next two-three weeks, said to senior executives aware of the plans.

They said the fast moving consumer goods (FMCG) arm of Reliance Industries Limited is expanding bottling operations with new partners and plans to diversify the brand into fruit-based drinks, soda, energy and jeera drink.

RCPL recently launched a zero sugar variant of Campa at ₹20 for a can of 200 ml, continuing its disruptive pricing strategy, and plans to expand the brand into more beverages to effectively compete against bigger beverage rivals Coca-Cola and PepsiCo. At present, Campa is sold in Andhra Pradesh and Telangana with cola, lemon and orange variants in sparkling beverage category.

The company has entered into manufacturing and distribution partnership with Tamil Nadu-based Asian Beverage, which makes and sells milk shakes and fruit drinks under the True and Yoo Too brands, and with Chennai-based Bovonto soft drinks maker Kali Aerated Water Works. Jallan Food Products was already bottling Campa in its plants in Andhra Pradesh and Rajasthan."The partnership with Asian Beverages and Kali Aerated will help RCPL to expand reach in southern markets, while at present it will use all these facilities to go national," said one of the executives, who did not wish to be identified. "RCPL will also utilise the facility of Gujarat-based Sosyo Hajoori Beverages, in which it owns 50% stake, to manufacture the Campa range. In markets where it won't get any bottling partner, Reliance may even invest to build bottling plants."

RCPL is creating its own conventional distribution network for beverages to ensure wider reach of Campa in kirana stores, paan-cigarette and soft drink shops, while it is tying up with business-to-business platforms like Flipkart Wholesale, apart from using Reliance-owned networks such as JioMart B2B and Metro Cash and Carry to expand reach.

"However, over 90% of the Campa business will be driven by traditional distributors. Such a network has already been built in Andhra Pradesh and Telangana, where Campa was initially launched, and is now being replicated in other markets," another executive said.

ET's queries emailed to RCPL remained unanswered till press time. Flipkart too did not respond to the email seeking comment on the partnership with RCPL for Campa.

Reliance acquired the Campa brand from Delhi-based Pure Drinks Group last August in a deal estimated at about ₹22 crore, as part of its plans to enter and scale up the FMCG business. ET was the first to report on the development.

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