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Varun Beverages Diversifies into Alcohol Business
25 Aug
Summary
- Varun Beverages will launch ready-to-drink alcoholic beverages via a new subsidiary.
- Former Diageo executive Prathmesh Mishra will lead the new alcohol venture.
- The company also approved a joint venture for soft drinks in Tunisia.
Varun Beverages, a major PepsiCo bottler, is diversifying into the alcoholic beverages sector. The company's board has approved the incorporation of KIVA Spirits and Company Limited, a wholly-owned subsidiary dedicated to manufacturing and selling ready-to-drink alcoholic beverages and related products. This strategic move marks a significant expansion for the company.
To spearhead its new alcohol business, Varun Beverages has appointed Prathmesh Mishra as the chief executive and managing director of KIVA Spirits. Mishra brings over three decades of experience from leadership roles at consumer businesses, including extensive tenure at Diageo and Pernod Ricard. His appointment signals a serious commitment to building a dedicated management team for this venture.
Separately, Varun Beverages is also expanding its non-alcoholic beverage operations internationally. The board greenlit plans for a joint venture in Tunisia, where it will hold a 75% stake. This Tunisian entity will focus on producing and distributing carbonated soft drinks, juices, water, and dairy products, leveraging Varun Beverages' established expertise in these categories.
