Reliance Consumer Products (Reliance), the subsidiary of Reliance Retail Ventures, has agreed to acquire 50% stake in Gujarat-based Sosyo Hajoori Beverages (Sosyo). The acquisition will strengthen Reliance’s beverage portfolio, owing to Sosyo’s expertise in different flavor formulations and homegrown flavors appealing to Indian consumers. On the other hand, Reliance’s strong distribution network and expertise will boost value growth for Sosyo, says GlobalData, a leading data and analytics company.
Sosyo Hajoori Beverages has been operating in Gujarat since 1923 and is a leading soft drinks manufacturer in the domestic market. The company is involved in selling energy drinks, juices, packaged water, carbonates, and flavored water under its Sosyo, Runner, Opener, S’Eau, Ginlim, Hajoori Soda, Kashmira, and Lemee brands. Sosyo exports its products to the US, the UK, the UAE, Canada, Switzerland, South Africa, Australia, New Zealand, and Zambia.
Shraddha Shelke, Consumer Analyst at GlobalData, comments: “Among all the categories in which Sosyo operates, energy drinks is in high demand among youth and millennials in India, supported by the on-the-go consumption. Easy accessibility of energy drinks through vending machines and retail shops makes it a favorable option for consumers.”
According to GlobalData, the energy drinks market in India is forecast to register a volume compound annual growth rate (CAGR) of 40-45% during 2022-26*. Brands such as Red Bull and Mountain Dew have high market share and are popular choices among young consumers.
GlobalData’s Q4 2022 consumer survey reveals that 54% of Indian respondents bought food/drinks from Reliance Fresh in the previous year, ahead of D-Mart and More Supermarket**. Although the beverages industry is highly competitive with top players, such as PepsiCo and Coca-Cola accounting for the bulk of volumes, Sosyo can become a household name in the beverage industry, by leveraging Reliance’s strong consumer reach.
Shraddha concludes: “Reliance Consumer Products is looking to fortify its presence in the consumer goods industry in India. Sosyo adds to the flurry of acquisitions Reliance has been making in the recent past to expand its brand portfolio. In August 2022, Reliance acquired soft drinks brand Campa Cola, followed by the launch of its FMCG brand “Independence” in December 2022. With Sosyo, Reliance gets the opportunity to expand in the beverages industry.”
* GlobalData Consumer Intelligence Center – Market Analyzers, accessed in January 2023
** GlobalData Q4 2022 Consumer Survey–India, with 554 respondents, published in November 2022
