[REVISION HISTORY]

Varun Beverages expansion and alcohol market entry

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2026-08-26 15:27 UTC → 2026-09-22 01:08 UTC · added ~~removed~~

Varun Beverages expansion and ~~earnings growth~~ alcohol market entry

In late July 2026, Varun Beverages Ltd, India’s largest PepsiCo bottler, announced a 15% rise in quarterly net profit and a 20% jump in revenue, driven by strong volume growth both domestically (14% increase) and internationally, notably after acquiring South Africa’s Twizza. The company also highlighted a shift toward premium, experience‑focused beverages in the Indian market. A few days later, the firm reported continued momentum, citing a partnership with Japan’s Asahi Group to launch the CALPIS fermented‑dairy brand and double‑digit growth in its Nimbooz and value‑added dairy lines. Expansion continued across South Africa, Zimbabwe and Zambia, while raw‑material price pressures were mitigated through early sourcing and a higher share of low‑sugar products. In the same period, Zimbabwe’s Delta Corporation posted a 23% revenue increase, driven by rising lager and sorghum‑beer volumes and capacity expansions at its breweries. By late August 2026, Varun Beverages signaled a major strategic pivot by entering the Indian alcoholic beverages market. The company’s board approved the incorporation of KIVA Spirits and Company Ltd, a wholly owned subsidiary dedicated to ready-to-drink (RTD) and alcoholic beverages. To lead this venture, the firm appointed industry veteran Prathmesh Mishra, formerly of Diageo and Pernod Ricard India, as Managing Director and CEO. This move aims to leverage Varun’s existing distribution network to tap into high-margin spirits and reduce reliance on its core carbonated soft drink business. In September 2026, the company clarified that this diversification was facilitated by a revised contract with PepsiCo that removed previous restrictions on non-PepsiCo business activities. Kiva Spirits, which intends to produce beer, wine, spirits, and RTD products, is reportedly in advanced discussions to acquire Alcobrew Distilleries India Ltd, pending regulatory approval.

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