Campa Cola's Pricing Shake-Up Pressures Tata Consumer

Tata Consumer Products Ltd faced significant competition from Campa Cola, which introduced aggressively priced drinks in the market. This forced Tata to lower its own prices, especially for Tata Gluco Plus. Despite this pressure, Tata remains committed to maintaining its market standing and plans for growth.

Tata Consumer Products Ltd (TCPL) experienced a setback due to aggressive pricing strategies from Campa Cola, prompting a price cut for its Tata Gluco Plus line.

TCPL's ready-to-drink revenue fell by 11% in the September quarter. According to Managing Director and CEO Sunil D'Souza, the decline was attributed to the competitive pricing in the marketplace.

Reliance Retail's Campa Cola disrupted the sector with a Rs 10 pack, forcing others to adjust prices. While TCPL initially lagged in response, multinational competitors quickly adapted their trade pricing. Although Tata's premium positioning was unsustainable, corrective actions have been implemented.

(With inputs from agencies.)