24 Oct 2024
To compete with Reliance Industries’ Campa, Coke and Pepsi may introduce 15-20% cheaper beverages in regional markets.
Reliance Industries' consumer products division offers retailers disruptive pricing and higher margins for its beverage brand, Campa. This has pushed the two cola giants to prepare counter strategies like cheaper products through B-brands without diluting the brand image and trade margins of their flagship drinks, an ET report said.
Coke also plans to improve the distribution of returnable glass bottles at ₹10, especially in tier-2 cities. One such brand at the ready for Coke is its local beverage RimZim Jeera, which was launched temporarily and has limited supply.
Campa sells a 200ml bottle for ₹10 compared to 250ml bottles of Coke or Pepsi sold for ₹20. Campa’s 500ml bottle goes for ₹20 while Coke sells it for ₹30 and Pepsi for ₹40. Reliance Consumer offers its distributors a 6-8% margin, compared with 3.5-5% provided by its competitors.
Coke and Pepsi are running tactical retail promotions without reducing the price.