Daybreak How Coke and Pepsi found their sweet spot in 'sugar free'
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Sep 29, 2025 India's beverage landscape is shifting dramatically with the rise of zero-sugar sodas, spurred by Reliance's budget-friendly Campa Cola. Coke and Pepsi are compelled to restructure their pricing strategies, emphasizing a significant market change. The economics behind artificial sweeteners reveal potential margins but also raise health concerns, questioning if low-sugar drinks are truly beneficial. As deceptive labels emerge and health risks associated with sweeteners like erythritol and aspartame come to light, consumers face a complex choice between price and health in this evolving market.
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Zero-Sugar Was A Price Defense
- Coke and Pepsi shifted zero-sugar from premium to mass-market to defend market share after Reliance's low-price push.
- They flooded stores with 10-rupee diet variants to compete on price rather than nostalgia or taste.
Reliance's 10‑Rupee Disruptor Move
- Reliance relaunched Campa Cola at 10 rupees and introduced a zero-sugar Campa at the same price.
- That move forced global brands to respond by lowering prices on their diet variants nationwide.
Diet Sodas Improve Margins
- Zero-sugar sodas are cheaper to produce because artificial sweeteners cost less and simplify manufacturing.
- Companies boost margins by selling diet variants at the same price as sugary ones.