Varun Beverages Shares in Focus After Alcobev Foray

Shares of Varun Beverages, PepsiCo’s key bottling partner in India, are under the spotlight following the company’s decision to enter the ready-to-drink (RTD) alcoholic beverages segment. The board has approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Ltd, to manufacture, market and sell RTD alcoholic drinks and allied products, subject to regulatory clearances. The new entity will have an authorised capital of ₹10 crore and paid-up equity of ₹9 crore, fully funded by the parent. To lead the venture, Varun Beverages has appointed Prathmesh Mishra as CEO and Managing Director. Mishra brings over three decades of experience, including senior roles at Diageo where he most recently served as Managing Director for Korea and Japan, and earlier as Chief Commercial Officer in India. The move marks a significant diversification beyond carbonated soft drinks and non-alcoholic beverages. It follows a revised PepsiCo agreement that removed earlier restrictions on other business lines, and comes amid earlier partnerships such as the CALPIS distribution deal with Asahi Group.