Varun Beverages expands into alcohol and international markets

Varun Beverages, a major PepsiCo bottler, is diversifying into the alcohol industry through its new wholly owned subsidiary, Kiva Spirits and Company Ltd. The company aims to produce beer, wine, spirits, and ready-to-drink products, pending approval from India’s Ministry of Corporate Affairs. This expansion was made possible by a revised contract with PepsiCo that removed previous restrictions on non-PepsiCo business activities. To lead this venture, the company appointed Prathmesh Mishra, a former Diageo executive, as CEO and MD of Kiva Spirits. Additionally, Kiva is reportedly in advanced discussions to acquire Alcobrew Distilleries India Ltd.

On the international front, Varun Beverages Zimbabwe is undergoing a regulatory review by the Competition and Tariff Commission in Zimbabwe regarding a planned 48.79 percent stake acquisition in Dairibord Holdings.

In the financial sector, the Nippon India Growth Mid Cap Fund significantly increased its position in Varun Beverages by purchasing approximately 3.5 million shares in August 2026.