Varun Beverages, a major PepsiCo franchisee outside the U.S., is moving into alcoholic drinks by creating a new subsidiary for ready-to-drink products and spirits.
The board approved the formation of KIVA Spirits and Company, a fully owned unit that will operate in India once regulators sign off. The Ministry of Corporate Affairs has already given its clearance.
Leadership and industry experience
Prathmesh Mishra will lead KIVA Spirits as CEO and managing director. 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.
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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.
A broader push into new categories
The new venture fits with Varun Beverages’ plan to enter related beverage segments. In early 2026, it teamed up with Asahi Group to make and sell CALPIS, a non-alcoholic drink, introducing the Japanese brand to India.
A year earlier, it signed an agreement with Carlsberg to exclusively distribute the brewer’s beer portfolio across parts of Africa, further expanding its presence beyond soft drinks in international markets.
Financial results support the approach. In the June 2026 quarter, net profit climbed 15% year-on-year to ₹1,525.35 crore. Revenue rose 20.7% to ₹8,650.57 crore, fueled by a 19.8% jump in sales volume to 66.7 million cases. International markets led the way, with volumes up 38.4%.
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Expansion beyond India
Varun Beverages is also entering North Africa through a joint venture in Tunisia. The new company, Varun Beverages Tunisia SA, will make and sell soft drinks, juices, water, and dairy products. Varun Beverages will own 75%, while local partner Bevanda holds the rest. Regulatory clearances are still needed.
This move targets emerging markets where packaged drinks are in demand but distribution is limited. Unlike the alcohol unit, this deal stays within non-alcoholic products, playing to the company’s strengths.
For now, the company is running two expansion paths—one for premium alcohol in India, another for core products in new regions. Success will hinge on execution and regulatory approvals, which can be slow in both areas.
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