PepsiCo, Coca-Cola on alert as Reliance enters hydration beverage market
What's the story
Reliance Industries's subsidiary Reliance Consumer Products Ltd (RCPL) has announced its entry into the hydration beverage segment, with the launch of Raskik Gluco Energy.
The new offering is expected to further heat up competition in the mass-market beverage category, which is currently led by giants like Tata Consumer Products, PepsiCo, Dabur, and Coca-Cola.
The move comes after RCPL acquired beverage brand Raskik in 2023.
Brand evolution
Raskik's journey from niche to master brand
Initially known for its coconut water, Raskik was founded in 2019 by Vikas Chawla, the former managing director of Coca-Cola's Southeast Europe division.
Since its acquisition by RCPL, the company has been repositioned as a master brand for juices and other beverages.
The newly launched Raskik Gluco Energy will be available across India at an affordable price of ₹10 per single serving.
Growth plan
RCPL's expansion strategy and market disruption
RCPL has been on an acquisition spree, both domestically and internationally, to grow its packaged consumer products business. In 2022, it had acquired Campa Cola from Pure Drinks Ltd.
The relaunch of Campa Cola at ₹10 for a 200ml pack rattled the market, compelling rivals like Coca-Cola, PepsiCo, Dabur India, and Tata Consumer Products to recognize its impact on the larger beverages category.
Product portfolio
Raskik's product range and future plans
The Raskik brand already offers a range of flavors such as mango, apple, mixed fruit, coconut water, and nimbu pani. However, RCPL intends to expand this portfolio even further by adding more "still" beverages in the future.
Reliance Consumer Products Ltd COO Ketan Mody said the aim is to make Raskik a leading drink brand in hydration and juices with all still beverages under this umbrella.
Market forecast
Market analysts predict impact of RCPL's entry
Market analysts have indicated that RCPL's foray into the hydration category could affect Dabur India and Tata Consumer Products Ltd.
Abneesh Roy of Nuvama Institutional Equities said, "We expect weak sales numbers for Nourishco of Tata Consumer; Dabur fruit juice business will anyway be weak (in the December quarter)."
The prediction highlights the potential market shakeup after RCPL's latest product launch.