We analyse the potential risk to Varun Beverages post the relaunch of Campa Cola and believe (1) Campa is an old brand but it has limited connect with youth consumers of less than 40 years of age, (2) it needs to invest in multiple manufacturing units pan India (as beverages are ‘low value high volume’ products), distribution network and visicoolers. These investments may require multiple years,
In Feb’23, unsuccessful auto-debit requests (bounce rate) in terms of value on the NACH platform fell to a 48-month low of 21.5% and bounce rate in terms of volume on the same platform fell to a 46-month low of 28.3%.