Varun Beverages plans to step up its distribution expansion in 2027 after a slower pace of investment by distributors this year, with the company looking to add a couple of hundred thousand retail outlets annually to its existing network of around 4.2 million.
The company is planning to expand both its retail footprint and its presence in outlets it already serves. The push comes as management looks to build on the distribution infrastructure created in previous years and increase the reach of its products.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
“We are already at about 4.2 million as per our last read, and we're hoping to add a couple of hundred thousand outlets every year,” Executive Vice Chairman Varun Jaipuria said on the company's Q3 CY2026 earnings call on Friday.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Jaipuria said the company was planning an aggressive expansion of both numeric and weighted distribution in 2027. Numeric distribution refers to adding new outlets, while weighted distribution involves increasing the company's presence in existing outlets.
ALSO READ | Varun Beverages Sees Gross Margins Bottoming Out After Packaging Cost Shock
Distributor Investments To Pick Up
Jaipuria said Varun Beverages had started working on its distribution plans for the following year after September. Distributor investments in 2026 had been less aggressive because distributors were still using vehicles and warehouse infrastructure built earlier, he said.
The latest plans follow a more ambitious expansion aspiration shared by Chairman Ravi Jaipuria during the Q1 CY2026 earnings call. He had said the company was adding around 300,000-400,000 outlets annually and hoped to add 500,000 outlets in 2026.
“We are expanding at about three to four hundred thousand outlets every year, and we are doing the same hopefully this year we might expand half a million outlets,” Ravi Jaipuria said on that call.
The chairman had also pointed to the growing availability of chilling equipment as a factor supporting market expansion. He said around one million refrigerators were entering the market annually through beverage companies and individual retailers. He added that companies able to expand distribution and strengthen their go-to-market operations would be better placed to benefit from this growth.
ALSO READ | Varun Beverages Q3 Results: Net Profit Rises 14% To Rs 828 Crore; Declares Dividend Of Rs 0.50 Per Share
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
