InvestorQ : Why is Reliance Industries acquiring soft drink brands like Sosyo and Campa Cola?
Angel dcosta made post

Why is Reliance Industries acquiring soft drink brands like Sosyo and Campa Cola?

Juvina Maggie answered.
2 months ago

Reliance Industries, which has recently laid out massive plans to get into FMCG products in its retail venture, has acquired homegrown two popular soft drink brand. Campa and Sosyo were two extremely popular brands made domestically by the Delhi based Pure Drinks group. However, many of these cola companies suffered with the advent of Pepsi and Coke into India as they could not match up to the marketing budgets of these larger global players and they had to sell out or become bottling units of these larger players.

The launch of FMCG products under the Reliance Retail banner will include plans to expand the reach of its existing private labels and also launching new ones and even acquiring some erstwhile popular local brands in the market. Reliance plans to launch Campa in 3 flavours which will include the cola version, the lemon variant and the orange variant. It will be retailed online and offline through its own chain of Reliance stores as well as local Kirana stores. Reliance sees a huge market for locally developed such brands.

While the deal size was not announced, it is expected to be worth around Rs22 crore. Initially, Pure Drinks had helped Coca Cola launch in India in 1949. However, in 1977, the Morarji Desai government shunted Coca Cola out of India and Campa chipped in to fill the space. That is when names like Campa and Parle grew rapidly. However, post 1990 the big names like Coke and Pepsi were back in India leading to throttling of local players and made them marginal players in the Indian cola market.