Varun Beverages Limited (VBL), the bottling partner of PepsiCo and one of the largest beverage manufacturers globally, has announced that its African subsidiaries will begin test marketing beer in their respective territories through an exclusive Distribution Agreement with Carlsberg Breweries A/S. The move marks VBL’s strategic entry into the beer segment, further diversifying its product portfolio beyond soft drinks and juices.
Carlsberg Partnership and Expansion Plans
The announcement was made by Mr. Ravi Jaipuria, Chairman of Varun Beverages, while commenting on the company’s performance for the third quarter (Q3 CY2025) and nine months ended September 2025. Under this exclusive arrangement, Varun Beverages’ African subsidiaries will distribute Carlsberg’s premium beer brands, marking a key step in strengthening its international presence and expanding into the alcoholic beverage space.
Jaipuria emphasized that this partnership aligns with VBL’s long-term vision of broadening its product base and leveraging its distribution strength across high-growth markets. “Our African subsidiaries shall test market beer through an exclusive distribution agreement with Carlsberg Breweries A/S for their Carlsberg brand,” he said, adding that this move is part of the company’s ongoing commitment to diversification and market expansion.
Strong International Growth and Strategic Moves
In Q3 CY2025, Varun Beverages’ international operations grew by 9%, led by strong demand in South Africa, where the company continues to see “significant potential” for long-term growth. The company is also setting up a wholly-owned subsidiary in Kenya to expand its beverage operations and capture emerging opportunities across the African continent.
Meanwhile, VBL’s snacks facility in Morocco has reached full-scale operations, and its upcoming Zimbabwe manufacturing plant is nearing commissioning — both key milestones in its strategy to diversify beyond beverages and enhance regional manufacturing capabilities.
Conclusion
Varun Beverages’ entry into the beer distribution business through its partnership with Carlsberg Breweries A/S underscores its ambition to evolve into a multi-category beverage powerhouse. With ongoing investments in capacity, logistics, and product diversification, VBL aims to deepen its foothold in international markets while continuing to capitalize on India’s long-term consumption growth potential.
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