India-based Varun Beverages has secured a ten-year extension of its exclusive bottling and trademark licence deal with PepsiCo.
In a regulatory filing, Varun Beverages said the companies have extended the licence to 30 April 2049 from its earlier expiry of 30 April 2039.
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The revision also removes the clause that has prevented Varun Beverages from pursuing non-PepsiCo ventures.
“The earlier EBA [exclusive bottling appointment] restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business. Now, this requirement is deleted in the revised EBA,” the filing read.
Varun Beverages has been building its presence in Africa through a series of acquisitions.
In March, the company announced an agreement to purchase South Africa-based Crickley Dairy from Clark Holdings for R238m (then $14.3m).
The transaction followed a deal in December to acquire Twizza, a South African producer and distributor of sodas, energy drinks, and mixers.
In October, Varun Beverages entered the alcoholic beverage sector through a distribution deal with Carlsberg in Africa.
The group has struck a couple of deals with PepsiCo in Africa. In 2024, Varun Beverages announced the full acquisition of the US group’s bottling operations in Ghana and Tanzania.
A year earlier, the company agreed to pay Rs13.2bn (then $158m) for The Beverage Company (Bevco), securing PepsiCo franchise rights in South Africa, Lesotho, and Eswatini, alongside distribution rights in Namibia and Botswana.
In 2025, Varun Beverages generated revenue from operations of Rs222.25bn ($2.40bn), up 8.5% year-on-year. EBITDA rose 7.2% to Rs50.49bn, while net profit after tax increased 16.2% to Rs30.62bn.
In the first quarter of this year, the company’s revenue from operations amounted to Rs65.74bn, up 18.1% from the same period a year ago, while net profit after tax soared 20.1% year-on-year to Rs8.78bn.
