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Reliance Industries Ltd (RIL) on Thursday denied that it is planning to enter the emerging low-alcohol beverages market. Earlier in the day, an Informist Media report stated that the conglomerate is planning to expand its consumer products portfolio and compete in what it sees as the next major growth category.
Later, a Reliance spokesperson told Business Today that the claims are false.
The report stated that the Mukesh Ambani-led conglomerate is evaluating the launch of ready-to-drink (RTD) “soft” or low-alcohol beverages, although discussions are still at a preliminary stage and no final decision has been taken, the report said, citing people familiar with the development.
“The plans are being worked upon and it should be a matter of time before we replicate the success of Campa in the Indian market with the launch of low-alcohol beverages,” a senior company official told Informist on the condition of anonymity.
According to the report, Reliance does not want to concede the fast-growing category to rivals such as Varun Beverages, which has been expanding its beverage portfolio beyond carbonated soft drinks. The company believes low-alcohol drinks could become increasingly popular among younger consumers looking for lighter alcoholic alternatives.
What are low-alcohol beverages?
Low-alcohol beverages generally contain between 0.5% and 1.2% alcohol by volume (ABV), substantially lower than conventional beers, wines or spirits. The segment includes flavoured malt drinks, hard seltzers and low-ABV cocktails, and has gained popularity globally as consumers shift towards beverages with lower alcohol content.
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In India, brands such as So Good Soju, IST Hard Seltzer, Barneys Hard Seltzer and premium non-alcoholic beer Heineken 0.0 have already established a presence in the category.
The report said Reliance is likely to launch the products only in states where alcohol sales are permitted, since laws governing the production, sale and taxation of alcoholic beverages fall under the jurisdiction of individual state governments.
The company is also expected to leverage its existing distribution network across most states, reducing the need to create a separate supply chain and potentially improving logistics efficiency and profitability.
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The shares of Reliance Industries Limited closed at Rs 1,318.10, up by 0.34 %.
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