- Varun Beverages plans to enter the alcoholic beverages segment with a new subsidiary
- KIVA Spirits and Company Ltd will focus on ready-to-drink alcoholic products
- Prathmesh Mishra, ex-Diageo executive, appointed CEO and managing director of KIVA
Varun Beverages Ltd, PepsiCo's bottling partner in India, is set to enter the alcoholic beverages segment as it looks to expand beyond its core soft drinks business.
The company's board has approved the formation of a wholly owned subsidiary, KIVA Spirits and Company Ltd, to develop and market ready-to-drink alcoholic beverages and related products, subject to the necessary regulatory approvals.
Following the development, shares of Varun Beverages closed 2.58% higher at Rs 438 on the BSE on Tuesday.
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Varun Beverages has appointed former Diageo executive Prathmesh Mishra as the chief executive officer and managing director of the proposed subsidiary.
The new entity will have an authorised share capital of Rs 10 crore and a paid-up equity share capital of Rs 9 crore, with Varun Beverages holding the entire stake.
The move marks a significant expansion for the Ravi Jaipuria-led RJ Corp group into the alcoholic beverages segment, particularly the growing premium and ready-to-drink categories.
Mishra brings more than three decades of experience in the beverages and consumer sector. He most recently served as managing director of Diageo's Korea and Japan businesses.
Before that, he spent several years with Diageo India, including seven years as chief commercial officer, where he led the company's commercial strategy. His earlier career also included a 14-year stint with Pernod Ricard India.
Varun Beverages' diversification follows a recent agreement with PepsiCo that removed restrictions on the lines of business in which the bottler could operate.
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The company has also expanded its presence in Africa through a distribution partnership with Carlsberg Breweries.
Separately, Varun Beverages has approved a 75:25 joint venture with Bevanda Tunisia to manufacture and distribute beverages in Tunisia.
The proposed venture will produce carbonated soft drinks, juices, water and dairy products, with a share capital of TND 9 million.
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