Varun Beverages, one of PepsiCo largest bottling partners, is entering the alcoholic beverages business to diversify beyond soft drinks. The company will enter the ready to drink (RTD) alcohol segment through a new wholly owned subsidiary.
The board has approved the incorporation of KIVA Spirits and Company Ltd, which will focus on RTD alcoholic beverages. Varun Beverages will remain the holding company, subject to regulatory approvals.
New CEO Appointment
The board has appointed Prathmesh Mishra as CEO and Managing Director of KIVA Spirits. Mishra has over three decades of experience in consumer businesses and has held senior positions in the global beverage industry.
Before joining Varun Beverages, Mishra worked with Diageo, one of the world’s leading alcohol companies. His most recent role was Managing Director for Korea and Japan, where he led business growth and strategy. His experience in premium beverages is expected to help Varun Beverages build its RTD alcohol presence.
Business Beyond PepsiCo
This move follows a change in the company’s agreement with PepsiCo. In June 2026, Varun Beverages signed a revised exclusive bottling and trademark licence agreement for India.
The new deal extends the partnership until April 2049 and removes earlier restrictions that prevented Varun Beverages from entering businesses outside PepsiCo products. The RTD alcohol entry is one of the first major steps after this change.
Alongside the Indian alcohol business, the board has approved a joint venture in Tunisia. The venture will produce and distribute beverages including soft drinks, juices, water and dairy products.
This expansion strengthens Varun Beverages’ international operations. The company already has a large presence across several markets and continues to grow its manufacturing and distribution network.
Ready to drink alcoholic beverages are gaining popularity as consumers look for convenient, packaged alternatives to traditional drinks. The category includes pre mixed cocktails and other packaged alcohol products that can be consumed directly.
For Varun Beverages, this category connects naturally with its strengths in beverage production, packaging, distribution and retail reach. However, the alcohol business will require new regulatory approvals and compliance across markets.
About Varun Beverages
Varun Beverages is a major beverage manufacturing and distribution company and a key PepsiCo bottling partner. Its portfolio includes soft drinks, juices, packaged water and other PepsiCo products.
The creation of KIVA Spirits marks a significant diversification move. The appointment of an experienced alcohol industry leader shows the company’s intent to build the new business with specialised expertise.
Varun Beverages entry into the RTD alcohol market represents a major shift in its business strategy. With regulatory freedom, strong distribution strengths, and leadership from an ex Diageo executive, the company is preparing to expand beyond soft drinks. Success will depend on how well it adapts to the alcohol sector while maintaining its core PepsiCo partnership.
