PepsiCo bottler Varun Beverages has made its first move into beverage alcohol, signing a distribution agreement with Carlsberg.
The deal, announced this week, marks India-headquartered Varun’s entry into the category and will commence with the test marketing of the brewer’s namesake beer across unspecified African territories. The company has also formally added the manufacturing and sale of alcoholic beverages – including beer, wine and spirits – to its corporate objectives, signalling a longer-term ambition to build a portfolio in the category.
In addition to the Carlsberg tie-up, Varun announced the incorporation of a wholly-owned subsidiary in Kenya, aimed at manufacturing, distributing and selling beverages locally. The move strengthens the company’s African footprint, adding to existing operations in Zimbabwe, Zambia, Morocco and South Africa.
Chair Ravi Jaipuria said the expansion aligns with Varun’s strategy to “broaden its product base and strengthen its presence across key growth markets,” adding that the company continues to see “significant potential” in South Africa and other international markets.
Last month, Carlsberg’s Lao Brewery Co unit signed a 15-year extension of its current bottling arrangement with PepsiCo in Laos.
