Africa: Indias Varun Beverages signs exclusive distribution agreement with Carlsberg for select African markets
Varun Beverages Limited (VBL), a key bottling partner of PepsiCo, on October 29 announced a major expansion plan that includes entering the alcoholic beverage segment in Africa and establishing new operations in Kenya.
VBL has signed an exclusive distribution agreement with Carlsberg Breweries A/S for select African markets. Through this deal, certain African subsidiaries of VBL will test-market Carlsberg beer across their territories.
The company said this step aligns with the growing demand for Ready-to-Drink (RTD) and other alcoholic beverages across global markets. It sees this partnership as a key opportunity to diversify its portfolio beyond soft drinks, adding beer, wine, whisky, rum, vodka, and other alcoholic beverages both in India and abroad.
As part of its global expansion strategy, VBL is incorporating a wholly-owned subsidiary in Kenya. The unit will handle the manufacturing, distribution, and sale of beverages in the region. This move marks VBL’s continued focus on strengthening its presence in African markets, where it already operates in countries like Zimbabwe, Zambia, and Morocco.
VBL has also announced the formation of a new joint venture in India, White Peak Refrigeration Private Limited, in partnership with Everest International Holdings Limited. The JV will manufacture visi-coolers and other refrigeration equipment, supporting the company’s growing cold chain and retail network.
VBL’s revenue from operations (net of taxes) rose 1.9% year-on-year to Rs 48,966.5 million in Q3 2025, compared with Rs 48,046.8 million in Q3 2024.
The company’s consolidated sales volume increased by 2.4%, reaching 273.8 million cases, up from 267.5 million cases a year earlier.
While India volumes remained flat, international volumes grew 9%, mainly driven by strong performance in South Africa.
The net realisation per case stood at Rs 178.8, slightly lower than Rs 179.6 in the same quarter last year, mainly because of a higher share of packaged water sales in global markets.
In Q3 2025, carbonated soft drinks (CSD) contributed 74% of total sales, non-carbonated beverages (NCB) made up 4%, and packaged drinking water accounted for 22%.
VBL’s EBITDA (earnings before interest, tax, depreciation and amortisation) was Rs 11,473.8 million, almost flat compared to Rs 11,511.2 million last year.
However, gross margins improved by 119 basis points to 56.7%, supported by better cost efficiency and an increased water mix in international operations.
The company noted that expenses such as employee costs, power, and manufacturing overheads rose due to higher in-house production. This led to a slight decline in EBITDA margins to 23.4%, from 24.0% last year.
Despite this, profit after tax (PAT) jumped 18.5% to Rs 7,451.9 million, compared to Rs 6,288.3 million in Q3 2024. The rise was mainly due to lower finance costs and higher other income, including interest on deposits and gains from favourable currency movements.
For the first nine months of 2025, VBL’s revenue grew 7.1% year-on-year to Rs 174,809.6 million, compared with Rs 163,188.6 million in the same period of 2024.
The company’s EBITDA increased by 6.8% to Rs 44,101.1 million, while PAT rose 14.9% to Rs 28,020.4 million.
Notably, low-sugar and no-added-sugar products made up 56% of total sales volumes, with 45% coming from the Indian market alone.
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