PepsiCo’s key Indian bottler, Varun Beverages Ltd (VBL), is uncapping a new category. The company has amended its Memorandum of Association (MoA) to formally include the alcoholic beverages business, marking a strategic shift for the soda giant’s franchise partner.
The Gurugram-based bottler, which handles PepsiCo’s beverage portfolio across India and several international markets, said the move reflects the growing popularity of ready-to-drink (RTD) alcoholic formats and a wider consumer shift towards premiumisation in beverages.
“VBL sees an opportunity to expand into the business of RTD and alcoholic drinks of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum and vodka in India and abroad,” the company said in its regulatory filing.
A cautious entry into alcobev
The amendment signals a diversification play for a company whose fortunes have so far ridden on carbonated soft drinks, bottled water, and juices. By adding alcoholic beverages as a main object in its charter, VBL is positioning itself to participate in India’s fast-growing RTD and light alcohol segment, a space attracting FMCG majors from Diageo to Pernod Ricard.
Industry analysts say the move could allow the company to leverage its existing distribution muscle and cold-chain network once regulatory and partnership structures are in place.
Carlsberg tie-up to test beer markets
VBL is also testing international waters. Its African subsidiaries have entered into an exclusive distribution agreement with Denmark’s Carlsberg Breweries A/S to market Carlsberg beer across select territories in South Africa.
The pilot initiative will allow VBL to gauge consumer response in emerging beer markets and potentially pave the way for a broader alcobev portfolio in Africa, where the company already operates its non-alcoholic beverage business.
As per media reports, VBL has incorporated a wholly owned subsidiary in Kenya to manufacture, distribute and sell the beverages under VBL’s label.
The company reported an 18.6% year-on-year rise in consolidated net profit for the quarter ended September 2025, touching Rs 745 crore against Rs 628.8 crore a year earlier. Revenue from operations rose modestly by 2.3% to Rs 5,047.7 crore, while total income for the period came in at Rs 5,195.7 crore. Sequentially, however, profits slipped 43.7% from Rs 1,325.4 crore in the June quarter, reflecting a seasonal slowdown after the summer demand surge.