Reliance takes Campa Cola to Gulf markets.

Reliance Industries is gearing up to introduce its cola brand, Campa Cola, in West Asia, marking its first foray into the export market, according to a report by The Economic Times. Known for disrupting the Indian carbonated soft drink industry, Campa Cola's low pricing strategy and attractive trade margins have unsettled major players like Coca-Cola and PepsiCo.
 
Initial consignments from India have already reached retail stores in Bahrain, with plans to expand to countries such as Oman and Saudi Arabia in phases. The company aims to progressively scale up its availability across the region before the summer season, the report said.

Strategic opportunity amid boycotts  

Reliance Consumer Products (RCPL), the FMCG arm of Reliance Industries, seeks to capitalise on a wave of anti-American sentiment in West Asia. Reports suggest that calls to boycott American products, driven by US support for Israel in the Gaza conflict, have dented sales for Coca-Cola and PepsiCo in several Gulf nations. Local consumers are increasingly turning to alternative brands, creating a favorable environment for Campa Cola's entry.  

Local bottling plans:

Reliance is also exploring partnerships to establish local bottling facilities in key markets such as Saudi Arabia and the UAE. For now, the company will rely on imports from India. A local bottling base could further facilitate Campa Cola's entry into Africa, given the Middle East's geographic proximity to the continent.  

Isha Ambani, who leads Reliance's FMCG and retail divisions, highlighted the company's global ambitions during the 2023 annual general meeting. She announced plans to expand Campa Cola's reach to international markets, beginning with Asia and Africa.  

Backed by a competitive Rs 10 pricing strategy, higher trade margins, and PET-only bottles, Campa Cola has disrupted the Indian beverage market.
 
Tata Consumer Products CEO Sunil D'Souza acknowledged this disruption during the September quarter earnings call, citing unsustainable pricing as a major challenge. The new player (Campa) disrupted the industry with a different price point, he said, adding that selling at such a price results in a loss of Rs 1.5-2 per bottle.  

By leveraging its disruptive strategies and exploring local partnerships, Reliance aims to replicate its Indian success story on the global stage.