Varun Beverages – Companies and brands owned by Varun Beverages

Varun Beverages primarily operates as a bottling partner for PepsiCo, producing and distributing its beverage brands. It doesn’t own independent brands but manages Pepsi, 7UP, Tropicana, Aquafina, Mountain Dew, Mirinda and other PepsiCo-associated products across regions.

What Is Varun Beverages?

Varun Beverages Limited (VBL) is a leading player in the beverage industry and one of PepsiCo’s largest franchisees globally outside the USA. Associated with PepsiCo since the 1990s, it manufactures, distributes and sells a wide range of PepsiCo beverages.

The company produces popular carbonated soft drinks like Pepsi, Mountain Dew and Mirinda, alongside non-carbonated beverages such as Tropicana juices, Gatorade and Aquafina packaged water. VBL operates across 27 Indian states, 7 union territories and international markets, including Nepal, Sri Lanka and Morocco.

As part of the RJ Corp Group, VBL benefits from strong leadership under Chairman Ravi Jaipuria, a recognized entrepreneur in the beverage sector. India remains VBL’s largest market, contributing 80% of its 2022 revenues.

Popular Beverages in the Varun Beverages Portfolio

Varun Beverages offers a diverse range of popular beverages, including carbonated drinks, fruit juices, energy drinks and bottled water, catering to a broad consumer base with varying taste preferences across different markets.

Pepsi: Pepsi was created in 1893 by Caleb Bradham and rebranded in 1898. Initially formulated as a remedy for indigestion, it became a global brand. Today, PepsiCo owns it, with annual revenues exceeding $80 billion. Pepsi holds a significant global market share and is available in over 200 countries, including India.

Mountain Dew: Mountain Dew was developed in 1940 by Barney and Ally Hartman as a mixer for whiskey. It was acquired by the Tip Corporation and later by PepsiCo in 1961. It’s one of PepsiCo’s most popular energy drinks, contributing substantially to its revenue, with strong markets in the U.S. and India.

Mirinda: Mirinda was created in Spain in 1959 by the Mirinda Company and is known for its fruity flavours. PepsiCo acquired it in 1970. The brand contributes to PepsiCo’s global portfolio, especially in emerging markets. It holds a significant market share in India, Latin America and Asia.

7UP: 7UP was introduced in 1929 by Charles Leiper Grigg. Originally a lemon-lime soda, it was acquired by PepsiCo in 1978 (in most markets). It remains a major player in the global soda market, with a strong presence in the U.S. and India, making it one of the top soda brands.

Tropicana Slice: Tropicana Slice was introduced by Tropicana Products in 1999 as a fruit drink in India. PepsiCo acquired Tropicana in 1998. Known for its refreshing taste, it dominates the Indian market and is part of PepsiCo’s global fruit juice portfolio. The brand maintains strong growth in multiple markets.

Tropicana Juices: Tropicana Juices, founded in 1947 by Anthony T. Rossi, was acquired by PepsiCo in 1998. Known for its 100% fruit juices, the brand has a strong presence in the U.S., Europe and India, contributing significantly to PepsiCo’s beverage revenues with a leading market share in juices worldwide.

Aquafina: Aquafina, launched by PepsiCo in 1994, is a popular bottled water brand. It quickly became a leading purified water brand in the U.S. and globally. PepsiCo owns Aquafina, which holds a strong market share in India and North America, contributing notably to the company’s overall beverage portfolio.

Food Brands Represented by Varun Beverages Limited

In addition to beverages, Varun Beverages represents a selection of well-known snack brands, providing a variety of savoury food options. These brands are part of its broader portfolio, complementing its beverage offerings in the market.

Lays: Lays, founded in 1932 by Herman W. Lay, started as a small U.S. snack company. Acquired by PepsiCo in 1965, Lays is now one of the leading global snack brands, generating substantial revenue. It holds a dominant market share worldwide, including a strong presence in India and other international markets.

Doritos: Doritos, introduced by Frito-Lay in 1964, quickly became the first widely popular tortilla chip. Owned by PepsiCo, Doritos is a leading snack brand worldwide. It contributes significantly to PepsiCo’s snack revenue and enjoys a major market share in global markets, with a strong presence in India and North America.

Kurkure: Launched by PepsiCo in 1999 for the Indian market, Kurkure was developed as a local snack. The brand quickly gained popularity and is now a major revenue earner in India. Kurkure holds a large market share in India and is expanding in neighbouring South Asian markets.

Other Top Brands Represented  by Varun Beverages Limited

Varun Beverages also manages a portfolio of other significant brands, including those in the snack and beverage sectors. These brands contribute to the company’s diverse range of products, enhancing its presence across various consumer segments.

7UP Nimbooz: 7UP Nimbooz was launched in 2001 by PepsiCo in India, combining lemon, lime and spices for a unique regional flavour. This popular beverage has become a key product in PepsiCo’s portfolio, particularly in India, with a growing presence in South Asia and select global markets.

7UP Nimbooz Masala Soda: Introduced by PepsiCo in 2011, 7UP Nimbooz Masala Soda is a spiced version of the original Nimbooz. The product quickly became popular in India due to its unique flavour. It is primarily available in India and select South Asian markets, adding to PepsiCo’s regional offerings.

How Did Varun Beverages Diversify Its Product Range Across Sectors?

Varun Beverages diversified its product range by expanding beyond soft drinks into various sectors such as snacks, juices, dairy and bottled water. This strategy helped the company tap into new markets and increase revenue streams.

• Expansion into Snacks: Varun Beverages ventured into the snack industry, offering products like chips and snacks. This allowed the company to diversify its portfolio and cater to a wider consumer base while capitalizing on the growing demand for convenience food.
  
• Entry into Dairy: The company expanded its reach by entering the dairy sector, producing milk-based products such as flavoured milk. By leveraging its distribution network, Varun Beverages aimed to capture a larger share of the daily consumer market.
  
• Bottled Water: Varun Beverages ventured into the bottled water market, capitalizing on the rising demand for safe and clean drinking water. This move helped the company expand its presence in the health-conscious consumer segment.
  
• Juice Sector Growth: The company diversified by introducing a wide range of fruit juices, focusing on health-conscious consumers seeking natural and refreshing drinks. This expansion not only targeted various taste preferences but also strengthened its position in the beverage industry.

Varun Beverages’s Impact on The Indian Market

Varun Beverages has had a significant impact on the Indian market by creating jobs, boosting local economies and enhancing the availability of popular beverages. Its widespread distribution network has increased access to global beverage brands while fostering healthy competition.

• Job Creation: Varun Beverages has generated thousands of jobs in India through its production facilities, distribution channels and retail partnerships. This has contributed to the country’s economic growth and provided employment opportunities across various sectors.
  
• Boost to Local Economies: The company has helped stimulate local economies by sourcing raw materials locally and establishing production plants. This approach supports regional businesses and contributes to rural development, creating a more sustainable supply chain.
  
• Enhanced Beverage Availability: With its extensive distribution network, Varun Beverages has made a wide variety of beverages easily accessible across urban and rural areas. Its presence has improved product availability, benefiting consumers nationwide.
  
• Fostering Healthy Competition: Varun Beverages’ entry into various sectors has intensified competition in the Indian beverage industry, pushing existing players to innovate and improve their offerings. This results in a better selection and value for consumers.

How to Invest in Varun Beverages Stocks?

To invest in Varun Beverages stocks, follow these steps:

1. Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue.
2. Research IPO Details: Review the company’s prospectus, pricing and performance.
3. Place Your Bid: Log in to the brokerage account, select the IPO and bid as per your preferences.
4. Monitor and Confirm Allocation: If allocated, your shares will be credited to your Demat account after listing.
5. Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.

Future Growth And Brand Expansion By Varun Beverages

Varun Beverages is focused on future growth and brand expansion by diversifying its product offerings, expanding into new regions and enhancing its digital presence. The company aims to strengthen its market leadership through strategic partnerships, acquisitions and continuous innovation.

• Diversification of Product Offerings: Varun Beverages plans to expand its product range further by introducing new beverages, including health-focused and premium options. This diversification will help the company cater to evolving consumer preferences and tap into growing market segments.
  
• Geographical Expansion: The company intends to increase its presence in untapped and international markets, particularly in emerging economies. Expanding its footprint in both rural and urban areas will drive growth and solidify its position as a leading player in the beverage industry.
  
• Digital Transformation: Varun Beverages is focusing on enhancing its digital presence through e-commerce, direct-to-consumer channels and digital marketing campaigns. This will help the company reach a broader audience and improve customer engagement in an increasingly digital world.
  
• Strategic Partnerships and Acquisitions: To accelerate growth, Varun Beverages will continue to seek strategic partnerships, joint ventures and acquisitions. These collaborations will expand its product portfolio, strengthen its distribution network and drive innovation in the beverage sector.

Introduction to Varun Beverages – Conclusion

• Varun Beverages Limited, a leading PepsiCo franchisee, produces and distributes beverages like Pepsi, Tropicana and Aquafina across India and international markets, led by Chairman Ravi Jaipuria under RJ Corp Group.
• Varun Beverages produces popular beverages like Pepsi, Mountain Dew, Mirinda, 7UP, Tropicana juices, Gatorade, Aquafina and Sting. These carbonated and non-carbonated drinks cater to diverse consumer preferences across various regions.
• Varun Beverages represents leading food brands such as Lays, Doritos and Kurkure. These popular snack brands complement its beverage offerings, enhancing its portfolio and serving a wide consumer base across India and other markets.
• Other prominent brands represented by Varun Beverages include 7UP Nimbooz and 7UP Nimbooz Masala Soda. These regional drink variations contribute to the company’s strong presence in the Indian market and other South Asian regions.
• Varun Beverages diversified by expanding its beverage portfolio, introducing both carbonated and non-carbonated drinks. It also ventured into the snack market by representing brands like Lays, Doritos and Kurkure, thus catering to broader consumer needs.
• Varun Beverages has significantly impacted India by enhancing the availability of global beverage brands and creating local jobs. Its extensive distribution network has made PepsiCo’s products widely accessible across both urban and rural India.
• To invest in Varun Beverages stocks, open a Demat account with a registered trading platform like Alice Blue and buy shares. Monitor stock performance and market trends for informed investments. Alice Blue charges Rs. 20 per order for all trades.
• Varun Beverages plans to expand its market reach by strengthening its distribution network, introducing new product variants and acquiring additional franchises. The company aims to increase its footprint in both domestic and international markets to drive growth.

Introduction to Varun Beverages And Its Business Portfolio – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.