Varun Beverages enters India’s alcohol market via new subsidiary

Varun Beverages, a major PepsiCo franchisee, is diversifying its portfolio by entering the Indian alcoholic beverages market. The company’s board has approved the incorporation of KIVA Spirits and Company Ltd, a wholly owned subsidiary focused on ready-to-drink (RTD) and alcoholic beverages, subject to regulatory approvals.

To lead this new venture, Varun Beverages has appointed Prathmesh Mishra as Managing Director and CEO. Mishra is a veteran of the spirits industry with over 30 years of experience, having previously held leadership roles at Diageo and Pernod Ricard India.

The strategic move aims to leverage Varun Beverages’ existing distribution network to tap into India’s high-margin spirits market, reducing the company's reliance on its core carbonated soft drink business. The Indian alcoholic beverages industry is estimated to have a market size of approximately 1.1 billion cases.