Asahi Group is preparing to introduce its Calpis dairy drinks brand in India through a franchise agreement with PepsiCo bottler Varun Beverages.
In a statement today, the Japanese company said the launch of the fermented milk-based drink marks its debut in the “non-alcohol/non-carbonated beverage market” in India.
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The Tokyo-listed group exports alcohol beverages to the market, including Asahi Super Dry lager.
Calpis is expected to land in the market in the second half of this year “or thereafter”, the group’s statement said. Asahi will launch the brand in two flavours, original and mango.
The drinks will be sold 180ml bottles and priced at Rs20 ($0.21) each, the company confirmed to Just Drinks.
Asked about distribution channels, Asahi said the “details are still being finalised, and we are unable to provide further information at this time”.
Under the franchise agreement, Asahi will take charge of product development and technical assistance to produce Calpis drinks.
Its local subsidiary will manage marketing and brand oversight, while Varun Beverages will be responsible for manufacturing, distribution and sales.
Varun Beverages, established in the 1990s, is PepsiCo’s second-largest franchisee outside the US and operates 53 production facilities in India and overseas.
In May, the bottler obtained a 10-year extension to its exclusive bottling and trademark licence agreement with PepsiCo in India.
The updated deal also removed a restriction that had barred the company from engaging in non-PepsiCo business.
In today’s statement, Asahi said India’s population of more than 1.4 billion makes it “an extremely promising market for non-alcohol beverages”.
Atsushi Katsuki, the CEO of Asahi Group Holdings, called India “one of the world’s most dynamic and promising beverage markets”.
Citing figures from GlobalData, parent company of Just Drinks, Asahi said that volume in India’s non-alcoholic beverages market has increased by about 2.3 times between 2015 and 2025.
It added that India “is expected to offer numerous growth opportunities, driven by factors such as population growth, the expansion of the wealthy middle-class, and rising health-consciousness among consumers”.
In 2025, the Super Dry brewer also announced a franchise agreement with Chinese drinks company KSF Beverage Holdings to bring its Calpis Water brand to mainland China.
Last week, Asahi lowered its full-year 2025 outlook, citing system disruptions linked to a cyberattack in Japan, softer sales, higher raw material costs, impairment losses and expenses tied to disruptions.
The company now expects revenue of Y2.89tn ($17.97bn), compared with an earlier forecast of Y2.95tn.
Profit attributable to owners is projected at Y120bn, down from the previous estimate of Y167.50bn.
Asahi is scheduled to report its full-year results in July.
