PepsiCo Partner Varun Beverages Mulls Entry into India’s Alcohol Market

Varun Beverages Limited (VBL),one of PepsiCo’s largest bottling partners in India is reportedly exploring a move into the alcoholic beverages segment, signaling a potential shift from its traditional soft drinks and non-carbonated portfolio.

According to industry sources cited by ET Retail, the discussions between VBL and PepsiCo are focused on launching low-alcohol ready-to-drink (RTD) beverages, leveraging the global popularity of such products and growing domestic interest.

Ravi Jaipuria, chairman of VBL’s parent company, confirmed the talks, highlighting the strategic potential of entering the alcoholic beverages market.“Globally,these products have seen strong traction, and India presents a similar growth opportunity,” he said.

The planned venture would combine VBL’s extensive manufacturing and distribution network across India with PepsiCo’s brand strength and global innovation capabilities. Industry insiders say both companies are currently assessing product formats,regulatory pathways, and manufacturing readiness before any formal announcement.

Entry into the alcoholic segment would mark a significant diversification for VBL, which currently focuses on soft drinks,packaged water and other non-alcoholic beverages. Analysts note that the move aligns with a broader trend in India’s beverage industry, where companies are expanding beyond traditional categories to meet evolving consumer preferences for convenient,low-alcohol options.

Regulatory hurdles, including state-by-state licensing for alcohol production and distribution, remain a key consideration. Nevertheless,observers suggest the combined scale and brand recognition of VBL and PepsiCo could give the venture a strong competitive edge if it proceeds.

The discussions underscore the growing appeal of RTD alcoholic beverages in India and hint at a potential shake-up in the country’s beverage market as legacy players explore new avenues for growth.