Varun Beverages, one of India’s largest beverage companies and a major PepsiCo bottler, is entering the alcoholic drinks market with a new business focused on ready-to-drink products.
The company’s board approved the creation of Kiva Spirits and Company as a wholly owned subsidiary, according to a filing with Indian stock exchanges Tuesday. The new company will manufacture and sell RTD alcoholic beverages and related products.
Varun Beverages also appointed former Diageo executive Prathmesh Mishra as Kiva Spirits’ chief executive officer and managing director.
The move takes Varun Beverages beyond its core soft-drinks business and into one of India’s faster-growing alcohol categories. The company already has an extensive beverage production and distribution network in India and several African markets.
Kiva Spirits will have authorized capital of about 1 billion rupees ($12 million), including approximately 900 million rupees ($10.8 million) in equity capital. Its establishment remains subject to approval by India’s Ministry of Corporate Affairs.
Varun Beverages has not disclosed which products or brands it plans to launch. It also has not announced production locations, a launch date or details about how the products will be distributed across India’s state-regulated alcohol markets.
The company is one of PepsiCo’s largest franchise bottlers outside the United States. It has worked with PepsiCo since the 1990s and produces, distributes and sells beverages including Pepsi, Mountain Dew, Sting, 7UP, Mirinda, Gatorade and Aquafina.
Varun Beverages reported consolidated net sales of 216.85 billion rupees ($2.59 billion) in 2025, up 8.4% from a year earlier. Sales volume rose 7.9% to 1.213 billion cases.
Earnings before interest, taxes, depreciation and amortization increased 7.2% to 50.49 billion rupees ($600 million), while net profit climbed 16.2% to 30.62 billion rupees ($370 million).
The company continued to grow in 2026. First-quarter revenue rose 18.1% to 65.74 billion rupees, while net profit increased 20.1% to 8.79 billion rupees.
Varun Beverages has expanded its manufacturing and distribution operations in India and Africa in recent years and has used acquisitions to build its overseas business. A company subsidiary in Africa reached an agreement with Carlsberg Breweries A/S in 2025 to distribute its beer products.
India’s RTD alcohol market remains relatively small but is growing quickly. Grand View Research estimated that sales of ready-to-drink cocktails reached $85.9 million in 2025 and would rise to $102.7 million in 2026.
The research firm expects the market to reach $324.9 million by 2033, representing average annual growth of 17.9% between 2026 and 2033.
Demand is being supported by India’s young population, changing drinking occasions and the introduction of premixed cocktails and hard seltzers by major alcohol companies.
Expansion remains difficult, however. India imposes high taxes on alcohol, and regulations differ significantly from state to state. Companies seeking national distribution must navigate separate licensing, taxation and sales rules across individual markets.
Mishra brings more than two decades of experience in India’s alcoholic drinks industry. He most recently served as Diageo’s managing director and CEO for South Korea and Japan, overseeing operations in two major Asian premium spirits markets.
He previously spent seven years as chief commercial officer of Diageo India and three years as its chief operating officer for western India. Mishra also served as chairman of the Royal Challengers Bengaluru cricket team.
Before joining Diageo, Mishra held several management positions at Pernod Ricard India. He began his career as a management trainee at Inertia Industries in 1993, later worked at Mohan Meakin and joined Pernod Ricard in 2000.
His appointment gives Varun Beverages an experienced alcohol industry executive as the company seeks to apply its beverage manufacturing and distribution capabilities to a new product category.
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