Business & Economy

Coca-Cola and PepsiCo Launch No-Sugar Variants at Just Rs 10 to Challenge Mukesh Ambani’s Campa

Coca-Cola and PepsiCo Launch No-Sugar Variants at Just Rs 10 to Challenge Mukesh Ambani’s Campa

Coca-Cola and PepsiCo have made a strategic move to challenge Mukesh Ambani-owned Reliance Consumer’s Campa by launching no-sugar beverage variants at an extremely competitive price. The introduction of these drinks, including Thums Up X Force, Pepsi No-Sugar, Coke Zero, and Sprite Zero, marks a significant shift in the Indian soft drink market, offering diet and light options at just Rs 10. This initiative is aimed at capitalizing on the growing demand for healthier beverage choices while competing with Campa’s aggressive expansion.

Industry experts believe this move is an attempt by multinational beverage companies to avoid cutting prices on their flagship brands. Instead, they are introducing smaller-sized packaging at lower prices to maintain premium pricing on their key products. The decision on whether to implement nationwide price reductions will largely depend on Campa’s performance in the market.

Market trends indicate that consumer preference for low-sugar and no-sugar drinks is rising. Sanjeev Agrawal, chairman of MMG Group, which operates Coca-Cola’s franchise bottler Moon Beverages, emphasized that the demand for such alternatives has surged. To cater to this shift, Coca-Cola has expanded its diet and light beverage range, offering affordable options starting at Rs 10, Rs 20, and Rs 30 in 250 ml and 500 ml sizes.

PepsiCo, on the other hand, has launched its no-sugar Pepsi in a 200 ml bottle priced at Rs 10, initially targeting Andhra Pradesh. This region is a key market for carbonated drinks and holds a strong position in India’s soft drink sales. Andhra Pradesh and Telangana alone account for nearly 20 percent of India’s total carbonated beverage market, making them crucial battlegrounds for brands looking to expand their market share. PepsiCo’s operations in the region are managed by the franchise bottling partner CK Jaipuria group, and the pricing strategy is seen as a direct response to Campa’s entry into the market in 2023.

Meanwhile, Campa has expanded its product availability nationwide, offering 200 ml bottles at Rs 10 in offline stores. However, industry insiders caution that sustaining such a low price point for long periods may not be feasible for beverage companies. To maintain profitability, brands are employing strategies such as occasion-based promotions, bundling offers, and leveraging both traditional retail outlets and quick-commerce platforms to boost sales.

The market for no-sugar and low-sugar drinks has witnessed significant growth, with sales reportedly doubling last year, reaching Rs 700-750 crore. According to estimates from industry executives and NielsenIQ data, the segment’s rising demand is particularly evident in urban areas, where consumers are increasingly health-conscious.

PepsiCo’s no-sugar and low-sugar beverages accounted for 44.4 percent of its total sales volume in 2024, up from 40.2 percent the previous year. This growth marks the highest increase recorded in India, according to its bottling partner Varun Beverages. The rising preference for healthier alternatives suggests a major shift in consumer habits, influencing the strategies of major beverage players in the Indian market.

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