Now Reading: Varun Beverages enters alcoholic drinks business with KIVA Spirits
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Varun Beverages enters alcoholic drinks business with KIVA Spirits
Varun Beverages enters alcoholic drinks business with KIVA Spirits
Varun Beverages, the PepsiCo bottler, has announced its entry into the alcoholic drinks business by incorporating a wholly owned subsidiary, KIVA Spirits and Company. The new entity will focus on ready-to-drink (RTD)…
Varun Beverages, the PepsiCo bottler, has announced its entry into the alcoholic drinks business by incorporating a wholly owned subsidiary, KIVA Spirits and Company. The new entity will focus on ready-to-drink (RTD) products, alcoholic beverages, and allied products in the domestic market, subject to regulatory approvals. The Ministry of Corporate Affairs has already granted approval for the subsidiary's incorporation.
The company appointed Prathmesh Mishra as CEO and Managing Director of KIVA Spirits. Mishra previously served as managing director for Korea and Japan at Diageo and held senior leadership roles at Diageo India. Separately, the board also approved a joint venture in Tunisia, Varun Beverages Tunisia SA, where Varun Beverages will hold a 75% stake, to produce and distribute beverages including soft drinks, juices, water, and dairy products.
The move is part of Varun Beverages' broader diversification beyond soft drinks. The company recently partnered with Japan's Asahi Group to distribute CALPIS in India and with Carlsberg to distribute beer in parts of Africa. In the June quarter of 2026, Varun Beverages reported a 15% rise in consolidated net profit to Rs 1,525.35 crore and a 20.7% increase in revenue to Rs 8,650.57 crore.
Indian Opinion Analysis
This marks a significant strategic shift for Varun Beverages, which has built its business largely on non-alcoholic beverages. The move into alcohol pits it against established players like United Spirits and Pernod Ricard in India's growing RTD segment. With PepsiCo as its primary franchise partner, the company must navigate potential brand conflicts and ensure the new subsidiary operates independently. The appointment of a Diageo veteran signals serious intent to build a premium portfolio. Investors will watch for the timeline of regulatory clearances and the first product launches under KIVA Spirits.
The Tunisian joint venture expands Varun Beverages' international footprint, adding to its existing operations in Africa. The company's strong quarterly results provide financial muscle for these new ventures. The real test will be execution: can it replicate its soft drink distribution strength in a heavily regulated alcohol market?
Source: livemint.com
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