Tagging the handles of PMO, Commerce Minister Piyush Goyal and companies, AICPDF tweeted on Thursday that the price war has started. AICPDF is closely monitoring this development as the distributors will be at loss.
Image Credit source: @datta_arvind Twitter Handle
Soft Drink Price War: in this summer Reliance Industries Has started preparing to ‘cool’ all soft drink companies. Yes, soft drink market after telecom with the arrival of Reliance (Soft Drink Market) There is a possibility of starting a big price war. The reason for this is that the prices of Campa Cola launched by Reliance in five different sizes (Campa Cola) 15 rupees less as compared to other companies. In such a situation, it can be difficult for Coke and PepsiCo to stand in the market.
Preparations started by Coke and PepsiCo
This time his competition is not only with Campa Cola brand but also with Reliance and Mukesh Ambani, who have left no stone unturned to lick foreign players in every sector. For this, foreign players already present in India, Coke and Pepsi, have started preparing to compete with Campa. Apart from trade discount, both the companies have announced to increase the expenditure on consumer promotion and marketing. Coke and Pepsi will not reduce prices immediately. For this, pre-approval is required and the consent of the bottling partners is also necessary. There is also the issue of inflation in the country. Because of which the focus on promotion has been increased.
War has started in Andhra
Reliance has started its war with Andhra Pradesh. Many reasons account for this. Thumpsup is the biggest brand of Coke in Andhra. Whose share is about 20 percent. Pepsi is very rare here. In such a situation, Campa will have a direct competition with Coke. After that the focus will be on other cities. Here Reliance has launched three flavors Cola, Orange and Lemon. According to market experts, how and to what extent Campa’s entry will affect Coke or other companies in the long term is still a distant thing, but the immediate impact can definitely be seen.
Read also: Campa Cola is just an excuse, Mukesh Ambani wants to dominate the market worth 74 thousand crores!
For the first time in three decades, there will be a collision
Both Coke and Pepsi came to India in the decade of 1990s and since then they have shown their continuous dominance in the country. No other brand could stand in front of both. Now with the support of Reliance, Campa has stood again. In such a situation, both Coke and Pepsi are feeling the pressure for the first time in India. Both will be seen facing tough competition from Campa. According to Coke’s official statement, the entry of new players will benefit consumers and increase investment and lead to new innovations. According to PepsiCo’s bottling partner Varun Beverages, the Indian soft drink market is huge and a new brand can easily adjust in this market without hurting others.
Protest started from distributors
Some of India’s leading distributors are protesting the price war between FMCG companies, which they say will severely hurt their margins, as cold drink companies will step up consumer promotions in states where Reliance has sold Campa Cola. Launched at lower prices than other companies. Dhairysheel Patil, president of the All India Consumer Products Distributors Federation (AICPDF), which leads 4 lakh distributors, said in an ET report that competition and promotion among big companies with low consumer prices directly affects the margins of lakhs of distributors.
Biscuits and confectionery will also be affected
Patil said that we fear that the price war may extend to other FMCG categories like biscuits and confectionery, where Reliance is moving forward. This will seriously hurt the margins of the distributors. Tagging the handles of the PMO, Commerce Minister Piyush Goyal and the companies, the Distributor Federation tweeted on Thursday that the price war has started. AICPDF is closely monitoring this development as distributors will be harmed..will write to all companies on this unethical competition.
