Reliance Brings Back The Iconic Campa Cola

Reliance Consumer Products Ltd. has relaunched the aerated drinks brand Campa, spurring a battle of colas with the long-standing market leaders Coca-Cola Co. and PepsiCo Inc.

The launch of this 50-year-old iconic brand is in line with the company's strategy to promote local brands that not only have a rich heritage, but also boast a deep-rooted connection with consumers due to their taste and flavours, according the company.

Campa Cola became a household brand in the 70s and 80s after Coca-Cola was driven out of the country by the Morarji Desai-led government due to regulatory issues. Campa along with Thums Up—that was launched by Ramesh Chauhan's Parle Bisleri—were the desi options that filled the void left behind by the exit of Coca-Cola. However, the re-entry of Coca-Cola, coupled with its intense battle for market share with arch-rival PepsiCo in the early 1990s, led to the decline of Campa and its eventual downfall.

The renewed Campa portfolio will initially include Campa Cola, Campa Lemon and Campa Orange in the sparkling beverage category, the fast-moving consumer goods arm of Reliance Retail Ventures Ltd. said in a statement on Thursday.

Reliance had bought Campa from its New Delhi-based parents Pure Drinks Group for a meagre Rs 22 crore in August last year. Now, the relaunch has raised hopes of the revival for the iconic brand. The Campa range is being rolled out from Andhra Pradesh and Telangana. It is currently available only on Reliance's JioMart platform and other Reliance Group retail outlets.

"By presenting Campa in its new avatar, we hope to inspire consumers across generations to embrace this truly iconic brand and trigger a new excitement in the beverage segment," a spokesperson for Reliance Consumer Products said. It will be available in five pack sizes—a 200ml immediate consumption pack, 500 ml and 600 ml sharing packs, and 1,000 ml and 2,000 ml home packs.

The cola drinks are being sold at a significant discount to offerings from the U.S. rivals. At Jio Mart, a two-litre bottle of Campa Cola is offered at Rs 59 as compared with Rs 86 for Coca-Cola, Thums Up, Limca and Fanta Orange of the same size and Rs 69 for a 1.5 litre bottle of Pepsi.

The recent launch is potentially negative for Varun Beverages Ltd., which handles bottling operations for PepsiCo and Coca-Cola in the country, according to Abneesh Roy, executive director at Nuvama Institutional Equities.

"This is one segment where Reliance has shown higher intent with two acquisitions—the other being Sosya Hajoori," Roy said. "Having said that, the near-term consumer demand for Varun Beverages is likely to be strong due to the high summer conditions."