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Riham Cola manufactured by Harris International continues to give Coca-Cola and Pepsi Cola sleepless nights. And looks like the two traditional players are running out of options.
First, Coca Cola tried to go to court and then the price wars. Coke and Pepsi Cola also introduced plastic bottle soda to fight off the aggressive Riham Cola.
Read: Riham Cola Market share jumps to 5 percent, as Coca Cola,Pepsi cut prices
These were short-term strategies, with huge financial implications on the soft drinks manufacturers. Knowledgeable sources say, Pepsi Cola tried to buyout Harris International in the early days, a deal Harris International management turned down.
In 1998, Coca Cola bought off Kampala Bottlers, the manufacturers of Schweppes at a cost of US$ 2m. Schweppes was threatening Coca-Cola’s survival in Uganda.
Fresh reports indicate Coca Cola has come up with long-term strategy to kick out Riham Cola or at worst neutralize them– reports indicate Coca Cola will sometime this year be re-launching Vimto Soda, a soft drink it withdrew from the market a few years ago.
Read: Coca Cola cuts prices as the sodas expire
Riham Cola, has been growing over the years and today, it controls more than five percent of all soda’s sold in Uganda. The product is very popular in the villages/ Coca Cola hopes Vomto Soda will counter Riham Cola in this market.
Early 2,000, Coca Cola bought more than 50 percent shares from the manufactures of Vimto soda at the cost of $ 980 million. Vimto was threatening Coke’s survival.
Vimto is a unique and has a distinct branding which is so difficult to replicate’
Newz Post also understands Coca Cola plans to launch a yet to be named energy drink to counter Harris International’s flying .
Read: Can Pepsi Cola’s Sting energy drink take on Rock Boom?
Coca Cola’s current energy drink-Monster Energy drink was not well received by the market part of the problem is the high price.
At Ugx. 6,000 Monster Energy drink is seen as expensive, yet there other cheaper varieties on the market, including Rock Boom which is selling at Ugx. 2,000.
Meanwhile, it remains to be seen whether Riham Cola will withstand the storm now that Crane Bank, a bank that has been a chief financier of Harris International ( bank has been extending favorable Loan to beverage firm) is no more.
Related: Is Pepsi Uganda house on fire? CEO goes on two months leave
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