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Pepsi bottler Varun Beverages is teaming up with Danish beer giant Carlsberg to distribute its brews across Africa. The stock gained more than 9% following the update.
Note: the move marks VBL’s first big step into the alcoholic beverages space and comes as the company continues to expand beyond its soft drink stronghold.
The deets: the company has signed an exclusive distribution agreement with Carlsberg Breweries A/S to test market the Carlsberg brand in their territories.
Alongside this, VBL has also incorporated a wholly owned subsidiary in Kenya to manufacture, distribute, and sell beverages.
“In response to the growing popularity of Ready To Drink (RTD) and variety of Alcoholic Beverages, VBL sees an opportunity for expansion into the business of RTD & Alcoholic Beverages of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum, vodka in India & abroad,” the company said in its statement.
Why it matters: while soft drink volumes fluctuate with seasons and inflation, beer consumption has remained resilient across emerging markets. For Carlsberg, this is a strategic way to widen its distribution reach without heavy capital investment.
By the numbers: in the September quarter, company’s net profit rose 19% to ₹745 crore, helped by lower finance costs and higher other income.
Revenue inched up 2% to ₹4,897 crore.
Big theme: India’s beer market is valued at over $9 billion & is expected to grow 7–8% annually, driven by urban millennials, premiumisation, and relaxed liquor policies in key states.
Global players like AB InBev, Heineken, and Carlsberg are expanding aggressively and Indian companies are eyeing a piece of that pie.
