PepsiCo partner RJ Corp launches product 'similar to Kurkure'

PepsiCo’s biggest Indian partner for beverage bottling — Ravi Jaipuria's RJ Corp — has come up with its own salty snacks brand which could set the stage for competition between the two corporate allies.

Kaabuli, which is a new salty snack product launched by Jaipuria’s RJ Corp, bears similarities to PepsiCo’s Kurkure products, an industry executive close to the development told The Economic Times.

RJ Corp has, however, denied any possibility of competing with Kurkure products, as per the report. The company’s spokesperson said that Kaabuli products were priced at entry level and would not compete with the value-added products under Kurkure brand. Moreover, Kaabuli products will be on sale only in RJ Corp’s retail outlets called JMart.

PepsiCo also officially concurred with RJ Corp and underlined that the Kaabuli branded products would be sold exclusively through JMart.

Nonetheless, a source aware of the developments in the company, was quoted as saying that PepsiCo did not take its partner’s new venture in good spirit.

The two companies might run into conflict soon over the clash of interests although the no-compete contract between RJ Corp and PepsiCo is officially regarding beverage products.

While RJ Corp is aiming for corporate expansion by diversifying products and services and has set its sights on at least tripling its present USD 1.6 billion revenue, PepsiCo is facing strong competition for its mass-market products with regional brands like Balaji Wafers, Bikaji Foods, Bikanervala gaining ground.