VARUN BEVERAGES TO ENTER ALCOHOL BUSINESS

PepsiCo's second-largest bottler globally,

is set to enter the alcohol business, and has named former Diageo executive Prathmesh Mishra as chief executive officer and managing director of it's proposed new subsidiary. The company will incorporate a wholly-owned subsidiary company in India called KIVA Spirits and Company Limited to operate in ready-to-drink alcoholic beverages and allied products. This diversification follows recent agreements allowing expansion into other drink businesses. Until recently, the agreement with PepsiCo restricted Varun Beverages from carrying out activities other than operating as a special-purpose vehicle for PepsiCo’s business. However in May26, the two companies revised their exclusive bottling and trademark licence agreement and the restriction preventing Varun Beverages from entering other businesses was removed.