Reliance Retail may bring India’s first major carbonates private label

This followed its acquisition of Campa Cola.

Reliance Retail could be bringing India its first major carbonates private label after it acquired Campa Cola, analysts said. 

Through Reliance Retail Ventures, Reliance Retail acquired Capa Cola from Pure Drinks Group for around $2.8m. 

“While Campa Cola can evoke nostalgia among Gen X and Gen Y (Millennials) and generate hype during the product launch, it is a novelty for Gen Z consumers,” Bobby Verghese, Consumer Analyst at GlobalData, said.

“However, nostalgia alone will not be enough for Campa Cola to take on the immense brand recognition, ubiquitous distribution network, and pricing power of global carbonate giants in the long-term. Coca-Cola and PepsiCo together accounted for 85.3% of the total values sales in 2021, thereby leaving no room for private labels.”

Read more: Reliance Retail profit climbs over 100% in Q1

Parthasaradhi Reddy Bokkala, Consumer Analyst at GlobalData, also said that the acquisition allows Reliance Retail to open a new chapter in the Indian cola wars. 

In this light, Bokkala said Reliance Retail’s strategy should focus on competing with brands such as Coca-Cola and PepsiCo.

“Given its network of 2,700 outlets of Reliance Fresh supermarkets and Reliance Smart grocery stores, and its JioMart online store, Reliance Retail has the retail muscle to rapidly elevate Campa Cola into a national private label,” Verghese added. 

“The company also has the deep pockets to go toe-to-toe with the MNCs in marketing and branding activities.”