Japan-based Asahi Group has partnered with Varun Beverages Limited, PepsiCo India bottler, to franchise the CALPIS brand in India, marking the entity's first entry into Indian non-alcohol and non-carbonated beverage market.
"Asahi Group Holdings, Ltd. announced today that it has entered into a business alliance agreement for franchising the CALPIS brand with Varun Beverages Limited, an India-based manufacturer, distributor and seller of non-alcohol beverages, to introduce the CALPIS products into the Indian market," the food and beverage firm said in a release on Thursday.
Varun Beverages share price: Shares of Varun Beverages Limited surged 0.51 per cent to Rs 546.95 (+2.80) as at 11:31 on Thursday.
Under the agreement, Asahi would overlook product development and provide technical support for the production of CALPIS-branded beverages, while marketing and brand management will be overseen by its local subsidiary. Varun Beverages will handle manufacturing, distribution and sales of the products in the country, adding a product with unique value to its portfolio.
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The alliance is said to launch CALPIS in India by the second half of 2026 or thereafter as a ready-to-drink, non-alcohol/non-carbonated dairy based product under two flavours - Original and Mango. In Japan, the company offers a variety of products, including concentrate for home preparation and ready-to-drink versions.
Asahi Group plans to leverage Varun Beverages’ production capabilities and nationwide sales network to drive its business into the new territory. It aims to achieve sustainable growth of existing businesses centered on the beer category while expanding into new areas. The firm seeks to drive sustainable growth and enhance its corporate value over the medium to long term through partnerships with local companies, like this franchise agreement.
Calling it a category which Varun Beverages is "committed to building" and one in which it sees significant long-term potential, Varun Jaipuria, Executive Vice Chairman said, "By combining Asahi’s global expertise with Varun Beverages’ manufacturing strength and extensive distribution network, we look forward to establishing CALPIS as one of the leading brands for Indian consumers."
