Varun Beverages to enter alcoholic drinks business, forms new subsidiary

Varun Beverages, one of PepsiCo's largest franchisees globally outside the US, is continuing to diversify its product portfolio beyond soft drinks and non-alcoholic beverages.

In its latest move, the company said on Tuesday that its board had approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company, to carry on the business of ready-to-drink (RTD) products, alcoholic beverages, and allied products in the domestic market, subject to the receipt of applicable regulatory approvals.

The company added that approval for the incorporation of the subsidiary had been granted by the Ministry of Corporate Affairs.

The move follows Varun Beverages' broader efforts to expand its presence across new beverage categories and markets. Earlier this year, the company partnered with Japan's Asahi Group to manufacture and distribute CALPIS, marking the Japanese beverage maker's entry into India's non-alcoholic ready-to-drink beverage market.

Varun Beverages had also signed an agreement with Carlsberg last year to exclusively distribute the brewer's beer portfolio across parts of Africa, further expanding its presence beyond soft drinks in international markets.

The company also said that it had appointed Mr. Prathmesh Mishra as Chief Executive Officer and Managing Director of KIVA Spirits. He most recently served as managing director for Korea and Japan at Diageo, where he was responsible for driving business growth and providing strategic leadership across two premium and complex markets in Asia.

Prior to his international assignment, Mishra held several senior leadership positions at Diageo India. He served as Chief Commercial Officer for seven years, leading the company's commercial strategy and execution, and earlier as Chief Operating Officer–West for three years, overseeing regional operations and business performance, as per the regulatory filing.

Meanwhile, the board also approved the incorporation of a joint venture company in Tunisia to carry on the business of producing and distributing beverages, including carbonated soft drinks, juices, water, and dairy products, subject to the receipt of applicable regulatory approvals.

The new entity, Varun Beverages Tunisia SA, will see Varun Beverages hold a 75% stake, while the remaining 25% stake will be held by Bevanda (Tunisia).

Varun Beverages Q2CY26 performance

The PepsiCo Inc. bottler reported a 15% increase in consolidated net profit at ₹1,525.35 crore for the June quarter of 2026, helped by double-digit volume growth in India and international markets.

The company, which follows the calendar year as its financial year, had posted a net profit of ₹1,325.48 crore in the April-June period a year ago.

Its revenue from operations was up 20.7% to ₹8,650.57 crore in June quarter 2026. VBL's consolidated sales volume in the June quarter grew by 19.8% year-on-year to 66.7 million cases in Q2 CY2026, driven by a volume growth of 14.4% in India and 38.4% in international territories.

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