PepsiCo’s product portfolio in India is a heaven for soft-drink consumers – from Pepsi and Mirinda to Slice, Mountain Dew, and Nimbooz. But now the global beverage giant might soon introduce the Indian market to a new kind of drinking experience – low-alcohol ready-to-drink (RTD) beverages! Varun Beverages, PepsiCo’s largest bottler in India, is in talks with the global beverage giant to introduce low-alcohol RTDs in the Indian market. What holds for the future of RTDs in the Indian market and can they succeed in carving their own niche? Here’s all the information you need to know about this new and exciting collaboration that seems a likely possibility.
In October 2025, Indian bottler Varun Beverages Limited (VBL) signed an exclusive deal to test Carlsberg sales in select African markets. While details of which specific countries have been selected for this test have not been disclosed yet, it is a strategy to diversify VBL’s portfolio beyond carbonated beverages.
VBL currently operates production facilities in South Africa, Eswatini, Lesotho, Zambia, Zimbabwe, Morocco, and the Democratic Republic of Congo. With global studies claiming that Africa’s beer market will reach $32.5 billion by 2025-end, it is no wonder that the Indian bottler company has exclusively signed Danish brewer Carlsberg to allow for beer testing in select markets.
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Ravi Jaipuria, Chairman of RJ Corp, VBL’s parent company, stated in October 2025 that they are exploring the possibility of starting RTD low-alcohol products from PepsiCo in India. A major development in their three-decade-long partnership, it would introduce the Indian market to a fairly new segment of RTD alcoholic beverages.
Global giant PepsiCo already has global partnerships with spirits makers AB InBev and Diageo through its subsidiaries. In fact, the company partnered with InBev’s Canadian subsidiary, Labatt Breweries, to launch SVNS Hard 7Up, an alcoholic RTD beverage with 7Up, in 2024. PepsiCo also has partnered with Diageo to launch a Captain Morgan rum X sugar-free Pepsi Max for the United Kingdom market.
Jaipuria’s statement comes after VBL announced plans to test Carlsberg beer in select African markets, stating that the company has “free cash flows”. He stated that if they go ahead with this partnership, it would be a major expansion beyond just soft drinks in India.
Varun Beverages stated that the distribution network for RTD low-alcohol beverages would practically remain the same as that of the soft drinks, making it easier and more scalable without significant extra costs.
This is a strategy that the company is set to follow in its African markets as it tests Carlsberg products. However, when asked whether the same model could work in India, he clarified that even though Carlsberg is well-established in India, the “initiative has nothing to do with India for now”.
He further elaborated, “Ready-to-drink low-alcohol products are growing globally, and there’s good potential here too. However, in India, alcohol advertising isn’t permitted, so visibility will naturally remain limited.”
Despite the advertising challenges, VBL states that they remain “open and helpful” to see what they can do in India.
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Many studies point out that demand for alcoholic beverages is certainly concentrated more in urban areas like Bengaluru, Mumbai, and Delhi, where rising disposable incomes and adoption of a more urban, western lifestyle is driving consumption. India’s Gen Z is not drinking as much as millennials and the previous generations but the demand for premium alcoholic beverages, especially for social occasions and entertainment remains steady. With VBL, PepsiCo’s largest Indian bottler expanding in Africa, it remains hopeful of launching RTD low-alcohol beverages in the Indian market soon. What do you think of this move?
