PepsiCo and Varun Beverages Explore Entry into India's Alcoholic Beverage Market
PepsiCo and its major Indian bottling partner, Varun Beverages, are in talks to introduce ready-to-drink, low-alcohol beverages in India. This move follows global trends and increasing demand among younger consumers for premium RTD products. The collaboration would mark a significant diversification for both companies in the Indian market.
PepsiCo and Varun Beverages, its largest bottling partner in India, are exploring a partnership to distribute and sell ready-to-drink (RTD) alcoholic beverages in the country. The initiative is driven by the rising global popularity of low-alcohol RTD products and changing consumer preferences, especially among millennials and Gen Z. Ravi Jaipuria, Chairman of RJ Corp, which owns Varun Beverages, confirmed that discussions are underway to bring these products to India, where the RTD alcohol market is projected to grow at a compound annual growth rate of over 6% between 2025 and 2035. Globally, PepsiCo has already entered the alcoholic beverage space through collaborations with major spirits producers, launching products like SVNS Hard 7Up in Canada and Captain Morgan and Pepsi Max in the UK. In India, this would be the first time PepsiCo and Varun Beverages collaborate on an alcoholic product line. The move is seen as a strategic diversification for Varun Beverages, which has so far focused exclusively on non-alcoholic beverages. The Indian alcoholic beverage market, valued at over Rs 3.9 lakh crore, is witnessing steady expansion, with strong growth in the low-alcohol RTD segment. This growth is fueled by urbanization, changing social norms, and premiumization trends. PepsiCo's rival, Coca-Cola, has also entered the alcohol segment in India with its own RTD offerings, further highlighting the sector's potential.
