Reliance Retail has
acquired soft drink brands Campa and Sosyo from New Delhi-based Pure Drinks
Group. The move comes as Reliance Retail announced plans to scale up its FMCG
business by expanding the reach of its existing private labels, launching new
ones and acquiring local brands in the market.
Campa’s
acquisition could put the company in direct competition with Pepsi and
Coca-Cola. Reliance acquired Campa for around Rs 22 crore, according to a
report by The Economic Times.
The brand is
expected to be relaunched in October this year with its iconic cola, lemon, and
orange flavors. The products will be available for purchase in Reliance Retail
stores, Jio Mart, and local kirana stores.
Also Read | Meta announces WhatsApp integration in JioMart after Reliance AGM 2022
The
news of the acquisition comes after Isha Ambani, director of Reliance Retail
Ventures Limited, announced on August 29 that the retail arm of the company is
set to enter into the FMCG segment.
“I am excited to
announce that this year, we will launch our fast-moving consumer goods
business. The objective of this business is to develop and deliver high
quality, affordable products which solve every Indian’s daily needs,” Isha
Ambani said.
Also Read | Mukesh Ambani buys son Anant Dubai’s costliest home: All details here
Reliance
Retail was also launched on WhatsApp with a partnership between Meta and
JioMart. It allows customers to order groceries from Whatsapp.
With this
development, Reliance Retail will be competing with the FMCG giants like
Hindustan Unilever, Nestle, and Britannia in an industry which is valued at
over $110 billion in the country.
Also Read | Mukesh Ambani at RIL’s AGM: Jio’s network can go around Earth 27 times
Campa
Cola was launched in the 1970s by Pure Drinks Group, which was also behind the
launch and distribution of Coca-Cola in 1949. The American brand was
temporarily banned from the country in 1977. Subsequently, the brand Campa Cola
was launched by Pure Drunks and Campa Beverages to fill the gap left by foreign
soft drinks in the country.
Also Read | Reliance to establish new energy manufacturing ecosystem says Mukesh Ambani
In the 1990s, Campa
along with soft drinks launched by Parle namely Thums Up, Gold Spot, and Limca,
dominated the market. However, after Coca-Cola subsequently acquired the three
Parle brands on its re-entry, Campa could not compete and fell out of the
market.
Also Read | Reliance AGM 2022: Jio partners with chipmaker Qualcomm
It has made multiple attempts to re-enter the market, with the latest bid in 2019, but failed to take on Coca-Cola due to a lack of financial strength.