Varun Beverages expands into alcoholic drinks with Carlsberg partnership, sets up operations in Kenya 

AFRICA – Varun Beverages Ltd (VBL), PepsiCo’s largest franchise bottler outside the United States, has announced a strategic expansion plan that includes venturing into the alcoholic beverage segment in Africa and setting up new operations in Kenya. 

As part of the initiative, VBL has signed an exclusive distribution agreement with Carlsberg Breweries A/S for select African markets.  

Through this partnership, VBL’s African subsidiaries will test-market Carlsberg beer across their respective territories. The move aligns with the increasing global demand for Ready-to-Drink (RTD) and alcoholic beverages. 

The company said the partnership represents a significant step toward diversifying its portfolio beyond soft drinks. It aims to introduce a range of alcoholic products, including beer, wine, whisky, rum, and vodka, across India and international markets. 

In addition to expanding its product range, VBL is strengthening its geographical footprint with the establishment of a wholly owned subsidiary in Kenya, Varun Food and Beverages (Kenya) Limited. The new entity will manufacture and distribute beverages locally.

The move underscores the company’s long-term commitment to the African market, where it already operates in countries such as Zimbabwe, Zambia, and Morocco. Kenya’s growing beverage sector and strategic market position are expected to provide new growth opportunities for the company. 

In India, VBL has announced the formation of a new joint venture, White Peak Refrigeration Private Limited, in collaboration with Everest International Holdings Limited. The venture will focus on producing visi-coolers and refrigeration equipment, aimed at strengthening the company’s cold chain and retail infrastructure. 

In its third-quarter (Q3 2025) financial results, VBL reported a 19.62% increase in net profit to Rs 741.19 crore (US$84.1M), up from Rs 619.61 crore (US$70.3M)in the same quarter of the previous year. Revenue from operations rose 1.9% year-on-year to Rs 48,966.5 million (US$, compared to Rs 48,046.8 million (US$544.9M) in Q3 2024. 

Consolidated sales volume grew by 2.4% to 273.8 million cases during the quarter, despite widespread rainfall across India. International volumes rose 9%, driven largely by robust performance in South Africa, while domestic volumes remained stable. 

Carbonated soft drinks accounted for 74% of total sales, non-carbonated beverages for 4%, and packaged water for 22%. The company’s EBITDA stood at Rs 11,473.8 million (US$130.12M), slightly lower than Rs 11,511.2 million (US$130.54M) a year earlier, while gross margins improved by 119 basis points to 56.7%, supported by cost efficiency and an increased water mix in global operations. 

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