Varun Beverages forays into alco-bev sector with Carlsberg tie-up in Africa
PepsiCo bottler Varun Beverages enters the alcoholic drinks space via a Carlsberg partnership in Africa, even as extended monsoons keep India volumes flat in Q3CY25
 "Varun Beverages forays into alco-bev sector with Carlsberg tie-up in Africa")
PepsiCo bottler Varun Beverages Limited (VBL) on Wednesday announced its foray into the alcoholic beverages sector, with a partnership between its African subsidiaries and Carlsberg Breweries A/S for their brand of beer, Carlsberg.
“In response to the growing popularity of Ready-To-Drink (RTD) and variety of alcoholic beverages, VBL sees an opportunity for expansion into the business of RTD and alcoholic beverages of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum, vodka in India and abroad,” the company stated while announcing its results for the third quarter ended September 30 (Q3CY25).
On a consolidated basis, the company, meanwhile, recorded an 18.8 per cent uptick in net profit to ₹745.1 crore from ₹628.8 crore in the same period last year. Its net sales grew 2.3 per cent to ₹5,047.7 crore from ₹4.932 crore last year.
In India, the company’s volumes remained flat due to an extended monsoon season. The net realisation per case stood at ₹178.8 per case in Q3CY25 as compared to ₹179.6 per case in the same period last year. Carbonated soft drinks constituted 74 per cent to revenue, while non-carbonated beverages contributed 4 per cent, along with 22 per cent contribution from packaged drinking water.
“While the extended monsoon season impacted consumption trends in India, we remain confident in the significant long-term potential of the domestic beverage industry. With low per capita consumption and rising penetration in semi-urban and rural markets, the opportunity for growth continues to be immense,” Ravi Jaipuria, chairman, Varun Beverages, stated in a release.
“Our ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are further strengthening on-ground execution, ensuring we are well-prepared to capture demand recovery in the upcoming season,” he added.
To bolster this cold supply chain, the company launched a joint venture in partnership with Everest International Holdings Limited. The new entity, White Peak Refrigeration Private Limited, will carry on the business of manufacturing visi-coolers and other refrigeration equipment in India.