Daybreak How Reliance's price war made Pepsi and Coke love 'zero sugar'
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Jan 14, 2026 India's soda landscape is transforming as Coke and Pepsi rush to offer low-priced zero-sugar options, spurred by Reliance's Campa Cola launch. This price war isn't just a health trend; it reveals strategic business maneuvers aimed at boosting margins. The podcast delves into the ingredients of these beverages, raising health-related concerns over sweeteners like erythritol and aspartame. It also explores who is buying these drinks, highlighting the differences between budget-conscious small-town consumers and urban buyers seeking premium options.
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Price War Made Diet Sodas Mainstream
- Reliance's 10-rupee Campa Cola zero-sugar relaunch forced Coke and Pepsi to match prices with cheap diet variants.
- This turned premium zero-sugar sodas into mass-market products almost overnight.
Lower Costs Raise Margins For Zero Sugar
- Zero-sugar drinks cost less to make because artificial sweeteners are cheaper and simplify production.
- Companies boost margins by selling diet and regular sodas at identical prices while lowering production costs.
Urban Trend Scaled Rapidly Nationwide
- Demand for low/no-sugar drinks had already doubled in 2024, led by big cities before spreading to smaller towns.
- By early 2025, Varun Beverages reported huge sales and over half of PepsiCo's volume came from these variants.