Varun Beverages Ltd (VBL), the flagship bottling arm of the RJ Corp group and one of PepsiCo’s largest global partners, is in early-stage discussions with PepsiCo to enter India’s alcoholic beverage segment. The move could mark a significant diversification for VBL, which has so far focused exclusively on non-alcoholic ready-to-drink (NARTD) products such as carbonated soft drinks, juices, and packaged water.
According to sources quoted in The Economic Times, the discussions are centred around introducing ready-to-drink (RTD) beverages with low alcohol content — a category witnessing growing traction globally. VBL Chairman Ravi Jaipuria confirmed that both companies are evaluating opportunities in this emerging space, saying, “This segment is doing well globally and we are exploring it for India too.”
If the plan materialises, it would represent the first time PepsiCo and Varun Beverages collaborate on an alcoholic product line in India. Globally, PepsiCo has already taken measured steps into the space through Mountain Dew’s alcoholic variant, “Hard Mtn Dew”, produced in partnership with the Boston Beer Company in the United States.
The Indian alcoholic beverage market, estimated at over Rs 3.9 lakh crore, has been witnessing steady expansion, with strong growth in the low-alcohol RTD category—driven by younger consumers seeking lighter, flavour-forward alternatives to traditional spirits and beer. Industry data suggests that the RTD category in India is projected to grow at a CAGR of over 10% over the next five years, propelled by urbanisation, changing social norms, and premiumisation trends.
Both companies, however, have emphasised that the talks are still at an exploratory stage and no definitive decision has been made. The potential collaboration underscores PepsiCo’s and VBL’s shared intent to tap into evolving consumer trends and diversify their beverage portfolios to align with global consumption patterns.
If executed, this move could signal a new phase in India’s beverage landscape—where traditional soft drink giants begin to bridge into low-alcohol innovation.
