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To grow its FMCG business, Reliance Industries acquires soft drink brand Campa. With Campa Cola, a variant of cola, the brand was once the market leader. The company will launch the brand near Diwali in his October.
Reliance has acquired Kampa from Delhi-based Pure Drinks Group for around Rs 22 crore according to a report in Economic Times (ET). It will be relaunched in the iconic cola, lemon and orange flavors. The brand wants to compete with Coca-Cola and PepsiCo, which led to Campa’s slow demise in 1990.
This product will be available at Reliance retailers, JioMart, and Kirana stores who purchase products from Reliance. The acquisition of Campa is part of Reliance’s broader strategy to enter the FMCG market. Speaking at the 45th Annual General Meeting (AGM), Isha Ambani, Director of Reliance Retail Ventures Ltd (RRVL) said: “This year, we will launch our FMCG goods business.”
Reliance Retail has also launched WhatsApp through a partnership between Meta and JioMart. This will allow the customer to shop groceries on their WhatsApp.
Reliance has identified almost two dozen potential brands which can be acquired or for joint ventures to strengthen the FMCG business. A couple of deals have already fallen through due to the high valuations sought. Reliance’s strategy is to go for small-sized deals valued at a few crores,” a statement by an executive who quoted this saying in the ET report.
Campa dominated the market in the 1990s along with Parle’s soft drink brands Thumb’up, Goldspot and Limca. But then, after Coca-Cola took over Parle’s three brands when they re-entered, Kampa couldn’t keep up and pulled out of the market.