Mukesh Ambani's Campa Cola to face tough competition as Coca-Cola, PepsiCo introduce new...

The cola industry is seeing a competition between diet and light drinks, as major companies like Coca-Cola, PepsiCo, and Reliance Consumer's Campa battle for dominance in India’s growing sugar-free market. Both Coca-Cola and PepsiCo are targeting health-conscious consumers by introducing small, affordable packs of their diet and light drinks for just Rs 10. These 200 ml bottles have been priced lower than their larger, more expensive counterparts, with the smaller packs becoming popular with customers.

Diet and Light Drinks Hit the Market

Coca-Cola and PepsiCo have launched several new sugar-free variants of their popular drinks, including Thums Up X Force, Coke Zero, Sprite Zero, and Pepsi No-Sugar. These drinks are now available in small Rs 10 packs, making them accessible to a larger number of people. According to officials from both companies, this is the first time that such low prices have been set for diet and light drinks in India. The strategy aims to attract more customers without lowering the price of their main flagship drinks. Industry experts believe the companies are waiting to see how Reliance’s Campa brand expands in the market before making any decisions about reducing the prices of their core brands.

Growing Demand for Low-Sugar Beverages

Sanjeev Agarwal, chairman of MMG Group, which is one of Coca-Cola’s largest bottling partners in India, shared that consumers are increasingly preferring drinks with less or no sugar. He mentioned that their diet and light portfolio has expanded to include drinks like Diet Coke, Coke Zero, Sprite Zero, and Thums X Force, with prices ranging from Rs 10 to Rs 30, depending on the size. These drinks are now available in both 250 ml and 500 ml bottles, giving consumers more options to choose from.

Campa’s Entry and Competition

Meanwhile, Reliance’s Campa is also entering the market with 200 ml sugar-free bottles priced at Rs 10. This is part of their strategy to challenge the big cola brands in India, starting with Andhra Pradesh, one of the largest cola markets in the country. PepsiCo has also introduced sugar-free Pepsi in 200 ml bottles at the same price to compete with Campa.

Challenges for Companies

Despite the popularity of these low-priced packs, industry experts note that Rs 10 bottles are not profitable for the companies. As a result, companies are not reducing the prices of their main drinks and are instead offering promotions and bundled offers on special occasions to avoid losses.

Sugar-Free Market Growth

The market for sugar-free and low-sugar drinks has been growing rapidly in India. Last year, sales of these drinks and juices doubled, reaching Rs 700-750 crore. According to data from Varun Beverages, which partners with PepsiCo, low-sugar and sugar-free drinks now make up 44.4% of PepsiCo's sales in India, marking a significant increase from 40.2% last year. This surge in demand is largely driven by urban areas, where people are becoming more health-conscious. Coca-Cola and PepsiCo have been leading this trend with products like Coke Zero and Pepsi Black, which were launched in India in 2014 and 2017, respectively.