Varun Beverages forays into alcohol business, names ex-Diageo executive Prathmesh Mishra to lead new unit

Varun Beverages Limited, the bottling partner of PepsiCo in India, is set to diversify into the alcoholic beverages business and has appointed former Diageo executive Prathmesh Mishra as chief executive officer and managing director of its proposed new subsidiary, according to a regulatory filing on Tuesday.

ET was the first to report that Ravi Jaipuria-owned RJ Corp group, PepsiCo's bottler for three decades, has tapped former Diageo executive Mishra to likely help expand the group's beverages footprint into premium alcoholic drinks.

Also read: RJ Corp picks former Diageo maven Prathmesh Mishra to expand drinks play


The company’s board approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Ltd, to undertake the business of ready-to-drink (RTD) alcoholic beverages and allied products, subject to requisite approvals. The proposed 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.

Shares of Varun Beverages Limited closed at Rs 438.00 per script on Tuesday on BSE, after a2.58% rise.

The appointment follows two major announcements by the beverage major made in the last one year.

VBL recently entered into a fresh agreement with PepsiCo, removing restrictions on the lines of businesses and allows it to diversify into other drinks businesses as well.

Late last year, the company had announced a distribution partnership with beer maker Carlsberg Breweries in Africa, a development which was widely seen as a precursor to a similar tie-up in India over time.

RJ Corp is also exploring options of buying out craft beer Bira 91 founder Ankur Jain's 17.8% stake in the beer company, after Jain's exit, one of the executives cited told ET earlier.

Also read: Varun Beverages joins hands with Carlsberg for African beer market

Who is Prathmesh Mishra?

Prathmesh Mishra is a seasoned consumer business leader with over 30 years of experience, spanning senior roles at global liquor majors Diageo and Pernod Ricard. He most recently served as managing director for Diageo's Korea and Japan businesses, where he was responsible for driving growth and providing strategic leadership across the two premium Asian markets.

Before his international assignment, Mishra spent several years at Diageo India, including seven years as chief commercial officer, where he led the company's commercial strategy and execution. He had earlier served as chief operating officer–West for three years, overseeing regional operations and business performance.

Prior to Diageo, Mishra spent 14 years at Pernod Ricard India, holding roles including vice president–North and regional leadership positions across West, Central and CSD, besides serving as national controller–key accounts. He began his career in 1993 as a management trainee at Inertia Industries and later worked with Mohan Meakins before joining Pernod Ricard in 2000.

Mishra has also served as chairman of Royal Challengers Bangalore, where he helped transform the franchise into one of India's most commercially successful sports brands.

Also read: Varun Beverages' international fizz outpaces India biz as overseas volumes surge 38%

Separately, Varun Beverages also approved the incorporation of a joint venture in Tunisia to produce and distribute beverages, including carbonated soft drinks, juices, water and dairy products.

The proposed Tunisia venture, to be named Varun Beverages Tunisia SA or another name approved by regulators, will be owned 75 per cent by Varun Beverages and 25 per cent by Bevanda Tunisia. The proposed share capital of the venture is TND 9 million, the company said.