Varun Beverages extends PepsiCo bottling partnership to 2049 

INDIA – Varun Beverages Limited (VBL), PepsiCo’s largest franchise bottler outside the United States, has extended its exclusive bottling and trademark licence agreement with PepsiCo and its affiliates in India for another 10 years, reinforcing a long-term partnership that now runs until April 30, 2049. 

The company disclosed the development in a regulatory filing dated May 21, stating that the revised agreement extends the validity of the Exclusive Bottling Appointment (EBA) beyond the earlier expiry date of April 30, 2039. 

Under the revised terms, Varun Beverages also removed a clause that had previously restricted the company to operating solely as a special purpose vehicle for PepsiCo-related business activities.  

The amendment provides greater operational flexibility as the company continues expanding its footprint across India and international markets. 

The agreement renewal comes as Varun Beverages posted strong financial results for the first quarter of calendar year 2026, supported by rising consumer demand and continued expansion across key markets. 

Revenue from operations during the quarter increased 18.1% year-on-year to Rs 6,574.2 crore (US$686.95M), compared to Rs 5,567 crore (US$581.71M) in the same period last year. Consolidated sales volume rose 16.3% to 36.3 crore cases, with India recording growth of 14.4% while international operations expanded by 21.4%. 

The company said changing consumer preferences toward healthier beverage options continued to shape sales performance during the quarter. Low- and no-sugar products contributed nearly 63% of consolidated sales volume, reflecting growing demand for reduced-sugar beverages across markets. 

Chairman Ravi Jaipuria said the company’s performance reflected healthy demand, disciplined execution, and continued progress across markets. 

He added that India continued to remain a major growth driver, supported by distribution expansion, capacity additions and focused product strategies. 

During the quarter, Varun Beverages introduced larger pack sizes and targeted pricing initiatives in India aimed at expanding consumer reach. The company also continued to strengthen its portfolio in energy and juice-based beverages while leveraging newly commissioned facilities to improve operating efficiencies. 

The PepsiCo bottler has also accelerated its international expansion strategy in recent months. Recently, the company launched a US$40 million snacks, juice and dairy production complex in Zimbabwe to strengthen its presence in Africa. 

The expansion followed Varun Beverages’ US$125 million acquisition of South African beverage producer Twizza through its subsidiary, The Beverage Company (BevCo), further strengthening its position in Africa’s competitive soft drinks market. 

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