Varun Beverages Ltd (VBL), PepsiCo’s largest bottling partner outside the United States, is in early discussions with the beverage major to jointly explore India’s fast-emerging alcoholic ready-to-drink (RTD) market. The move could mark PepsiCo’s debut in the country’s alcohol segment and signal a new chapter in its three-decade-old alliance with VBL.
“We are in talks with PepsiCo to see if we can introduce some of their low-alcohol, ready-to-drink beverages in India,” said Ravi Jaipuria, chairman of RJ Corp, VBL’s parent company, during a post-earnings call. He added that these products are gaining traction globally and India offers strong growth potential.
The discussions come soon after VBL announced a distribution partnership with Danish brewer Carlsberg for select African markets. PepsiCo, meanwhile, has already entered the global RTD alcohol space through collaborations with AB InBev and Diageo. In Canada, it recently launched SVNS Hard 7Up with Labatt Breweries, while in the UK it partnered Diageo for a Captain Morgan and Pepsi Max cocktail.
If finalized, the collaboration will extend VBL’s portfolio beyond soft drinks for the first time. The company has already informed exchanges that it plans to test opportunities in beer, wine, whisky, gin, rum, and vodka across India and international markets. “We will move carefully, starting with Africa and evaluating India next,” Jaipuria said.
Industry experts caution that the RTD segment, while lucrative, involves complex distribution and stringent regulatory norms. Still, market projections are promising: India’s RTD alcoholic beverages market is expected to grow at a 6% CAGR between 2025 and 2035, outpacing global averages, according to Future Market Insights.
The move comes at a time when India’s soft drink sales are under pressure following a weak summer season and rising competition from new and regional beverage brands.
