Reliance's Campa Cola IPL blitz reignites cola wars, challenging Coca-Cola and Pepsi

Campa Cola’s acquisition of the co-presenting rights for the Indian Premier League (IPL) is set to intensify competition in India’s cola market, with implications for incumbent players like Coca-Cola and PepsiCo. According to Nuvama Institutional Equities, this aggressive move underscores Campa’s intent to scale up rapidly and expand its presence nationwide.

“This year’s summer will mark the first time all cola companies will compete on a pan-India level,” says Abneesh Roy, executive director, Nuvama. “Till last year, Campa was largely restricted to select markets like Andhra Pradesh and Gujarat. With IPL’s high visibility, we expect Campa to perform exceptionally well in CY25, leveraging disruptive pricing, heavy advertising, and the sponsorship deal. This, in turn, is negative for existing cola incumbents.”

The IPL sponsorship, reportedly costing Rs 200-250 crores—similar to last year’s rights held by Coca-Cola’s Thums Up—represents one of the most prominent advertising slots of the tournament. It grants Campa Cola nationwide reach, setting the stage for a battle over consumer loyalty and market share. The company is also expected to actively pursue further sponsorships, tie-ups, and franchise partnerships, posing a direct challenge to Coca-Cola and PepsiCo.

Campa’s disruptive growth signals market shift

Campa’s rapid expansion is already visible in its financial trajectory. The company is likely to clock Rs 1,000 crores in revenue for FY25, marking a 150% YoY growth from Rs 400 crores in FY24. “These kinds of numbers—Rs 1,000 crores revenue within two years of operations—are extremely rare in FMCG. This clearly signals the disruptive impact Campa Cola has started to create,” Roy explains.

With its Rs 10 price point, a major advertising blitz, and IPL association, Campa has already captured a double-digit market share in the sparkling beverage category in select states. According to Nuvama, the next two to three years will likely witness significant market share erosion for Pepsi and Coca-Cola, as well as an adverse impact on Dabur’s fruit juice segment and Tata Consumer’s Nourishco.

Cola wars to intensify; media and trade to benefit

The cola battle is set to escalate, with companies ramping up advertising and increasing trade margins to sustain competitiveness. “We see cola wars intensifying sharply, leading to higher ad budgets—good news for media companies—and increased trade margins across the beverage sector,” says Roy.

Apart from Campa, Reliance Consumer Products Ltd (RCPL) is also pushing aggressively into the market, with its sports drink ‘Spinner’—co-created with cricketer Muttiah Muralitharan—securing deals with four IPL teams (Lucknow, Hyderabad, Punjab, and Mumbai). RCPL’s ‘RasKik’ gluco-energy drink is also expected to be heavily advertised, both priced at Rs 10 to compete with existing players.

Challenges for Varun Beverages and other incumbents

“Investors’ concerns about Campa’s manufacturing scale-up and taste profile are not insurmountable challenges. In FMCG, ‘jo dikhta hai, woh bikta hai’—visibility drives sales,” Roy opines.

With Campa’s national push, Varun Beverages—Pepsi’s bottler—faces potential headwinds. Nuvama’s latest report warns of a challenging December quarter for Varun Beverages, Dabur’s fruit juice segment, and Tata Consumer’s Nourishco. As Campa cements its position, established players will need to rethink their strategies to defend market share.

Campa Cola’s IPL sponsorship marks a decisive moment in India’s beverage industry, setting the stage for aggressive marketing battles and potential market realignment in the coming years.