Varun Beverages doubles down on scale, Africa expansion drive

Varun Beverages Ltd (VBL), PepsiCo's largest franchise bottler, is betting largely on capacity expansion and growth in the African markets to drive higher sales volume. The Indian bottler has largely focused on wide distribution, continued investments, and new launches to drive 16.3% sales volume growth the first quarter of calendar year 2026.

The company reported a volume growth of 14.4% in India and 21.4% in the international territories, including Africa. VBL's revenue increased by 18.1% annually to Rs 6,574 crore, attributed to healthy demand, disciplined execution, and continued progress across markets.

Shares of Varun Beverages Ltd. soared around 3.62% to Rs 508.50 (+17.75) after positive financial results.


The PepsiCo India bottler highlighted that demand remained encouraging in the Indian market, supported by wide distribution reach, strengthened execution, and continued investments in manufacturing capacity and chilling infrastructure.

Also read: Varun Beverages Q1 Results: Cons profit jumps 20% YoY to Rs 879 crore; revenue rises 18%

"We undertook targeted initiatives to drive volumes and strengthen our domestic portfolio, including pack upsizing, selective price-point launches in identified markets to onboard new consumers, and new launches in the energy and juice-based drink segments," said Ravi Jaipuria, Chairman at Varun Beverages Limited.

The company had commissioned new manufacturing facilities in the last year, which has now stabilised and " and are expected to support growth and enhance operating efficiencies going forward."

VBL's bet on overseas markets

VBL's international business, marked by the snacks and beverages category, has made steady progress with 21.4% sales volume growth in the international territories.

"Across Africa, we continue to build scale in snacks and deepen our presence in high-potential markets, in line with our strategy of broadening the portfolio and strengthening consumer relevance," Jaipuria said.

VBL consummated the acquisition of Twizza in South Africa through BevCo to expand its manufacturing footprint and route-to-market capabilities in Africa’s largest soft drinks market, expecting to generate meaningful operational and commercial synergies over time. The acquisition raised VBL's finance cost by 18% in the current quarter.

It also entered into an agreement to acquire Crickley Dairy through BevCo, which will further strengthen its presence in South Africa, subject to regulatory and other approvals.

"Looking ahead, we remain confident in the long-term opportunity across our markets, supported by favorable demographics, rising incomes, growing urbanization, and increasing beverage consumption," the chairman said, adding that the company is well-positioned to deliver sustained growth and create long-term value for all our stakeholders with adequate capacities, a diversified portfolio, and a strong distribution network.