Summer is here. An important time for all beverage brands as sales usually are at peak during this season. Reliance Consumer Products Ltd (RCPL) has cleverly rolled out the recently acquired and revamped brand Campa into the market. The relaunch of Campa will prove to be strong competition for the existing players in the cold beverage market.
In the 1970s, Delhi-based Pure Drinks Group, which was considered a pioneer in the soft drinks industry, came up with a soft drink brand, Campa. It was the same group that had, in 1949, laid the carpet for Coca-Cola’s entry into India and had been its manufacturer and distributor. But the journey of Coca-Cola was short-lived.
In 1977, Coca-Cola was asked to wind up its operations when it refused to follow the Foreign Exchange Regulation Act. This Act mandated foreign players to partner with an Indian entity, which would have meant revealing their secret recipe.
As Coca-Cola exited in the 1970s, it proved a golden opportunity for Pure Drinks’ Campa. When Coca-Cola re-entered India in 1993 during the period of liberalisation, it found survival difficult.
Storyboard18’s Shibani Gharat recently caught up with Arnab Roy, VP – marketing, Coca-Cola to discuss the future plans of the brand in India and how they plan to face the new competition.
Campa is a legacy brand in India. It has emotional value attached to it. While old customers will have fond memories of the original Campa and cherish the nostalgia associated with the brand, younger consumers are experimental and look beyond value. Demand for Campa is sure to soar. Competition is going to be fierce. According to Roy, if as a brand, there is more competition out there, the importance of the category, the excitement in the category will actually go up. Moreover, India as a country, has a very small per capita. Thus, providing opportunities for multiple players to co-exist.
“Campa’s revival is one of the best things to happen. Overall towards the end of the day, the competition is going to keep us on our toes and overall per capita of India in terms of sparkling consumption is hopefully going to go up and that is good news for a lot of brands. It is important for us that we should not be distracted and ensure that our strategies are all in place. In the end, if your brand is healthy and is strong then there is enough room in India for everybody.” Roy adds.
One fear over the last few years has been regarding the aerated cola category stagnating. Sales numbers are plateauing, innovation is lacking. However, according to Roy, the numbers in this category have been very good over the last few years. India is a very price conscious market and affordable price points like Rs. 10 price point or Rs. 20 price point are very important. The premium price point range, involves some good pack mix interventions and so, the overall profit pool remains at a level.
“On the contrary to a lot of perception that the media and marketing industry have that this is a stagnant category-you have the numbers this has been the fastest growing sub categories in the overall FMCG. But, the penetration is still so low. It is very important for us to ensure that we have a lot many players and all of us do the work to go and drive the habits and then improve the per capita. Because towards the end of the day it will help all of us.” Says Roy.
Watch out for the full interview here and catch it on Storyboard18 on CNBC-TV18 this weekend.