Coca-Cola may cut prices to face competition from Reliance's Campa Cola

Beverage major Coca-Cola is set to reduce the price of its 400 ml PET bottles from Rs 25 to Rs 20 in at least southern markets within a week, The Times of India reported on Wednesday.

These markets include Tamil Nadu, Karnataka, and Kerala. The report said that the company plans to introduce a new packaging, which will advertise the brand as offering 250 ml and 150 ml free (250 ml + 150 ml free) at an MRP of Rs 20.

Coca-Cola’s price cut move comes amid rival Campa Cola’s aggressive expansion and lower pricing. The Reliance-backed brand’s price strategy has pushed global brands like Coca-Cola to adjust their strategies.

At present, Campa Cola sells its 500 ml PET bottles for Rs 20, cheaper compared to Coca-Cola’s 400 ml bottle for Rs 20. Campa’s 600 ml bottles are priced at Rs 30 while Coca-Cola sells the quantity for an extra Rs 10.

On the move, distributors told TOI that their immediate concern lies over the sitting stock of the existing stock of Coca-Cola’s 250 ml bottles, priced at Rs 20. They need to ensure this stock is clear before the repackaged 400 ml bottles with reduced prices hit the markets.

Campa-Cola’s aggressive pricing strategy

Besides offering their products at low prices for consumers, Campa Cola is making waves by offering higher margins to retailers, which is helping Reliance bolster the beverage’s presence across the country.

In response to these tactics, Tata Group’s Tata Gluco Plus was also forced to reshape its price model to maintain the market share.

Amid the ongoing festive season, Reliance has intensified its marketing campaign by offering lucrative discounts to attract customers. Through this move, it is aiming to boost its presence not just in urban but also in price-sensitive rural markets.