Pepsi Bottler Goes Boozy: Varun Beverages Surges on Carlsberg Beer Deal & Q3 Profit Jump
After decades of selling PepsiCo sodas and bottled water, Varun Beverages is making a bold pivot into booze. The company’s board on Wednesday approved adding alcoholic drinks to its business scope, a strategic move to diversify beyond soft drinks. “In response to the growing popularity of Ready To Drink and [a] variety of alcoholic beverages, VBL sees an opportunity for expansion into [this] business… including beer, wine, liquor, brandy, whisky, gin, rum, [and] vodka in India & abroad,” the company said in a statementndtvprofit.com. In other words, the Pepsi bottler will now also be an alcoholic beverages company, eyeing a piece of the high-growth beer, cider and spirits market. As a first step, Varun Beverages has partnered with Danish brewing giant Carlsberg. VBL signed an exclusive distribution agreement with Carlsberg Breweries A/S to launch Carlsberg beer in select African marketseconomictimes.indiatimes.com. Under this pact, VBL’s African subsidiaries will test-market Carlsberg’s flagship lager across their territorieseconomictimes.indiatimes.com. This is a significant development – it gives Varun an immediate entry into the beer segment via a well-known global brand. The company indicated that the tie-up aligns with shifting consumer demand and provides “a key opportunity to diversify its portfolio beyond soft drinks” by adding
