Varun Beverages approves entry into India’s ready-to-drink alcohol category

Varun Beverages has approved a new India subsidiary, Kiva Spirits and Company, to enter ready-to-drink alcoholic beverages. The move broadens the Pepsi bottler’s portfolio beyond non-alcoholic drinks into a fast-evolving adult beverage segment.

— Source publishedWed, 26 Aug, 2026, 08:02 IST·First seen Wed, 26 Aug, 2026, 08:36 IST·Source Business Standard · Companies

What happened

Varun Beverages approved entry into ready-to-drink alcoholic beverages through new India subsidiary Kiva Spirits. Mamaearth parent Honasa cancelled its Fluence

Key facts

  • 5G

Why this matters

Kiva Spirits and Company gives Varun Beverages a platform for partnership, licensing and acquisition opportunities in India’s fragmented, fast-growing RTD alcohol segment.

What to watch

  • Capital infusion, shareholding details, management appointments and stated business scope for Kiva Spirits.
  • Applications or approvals for manufacturing, bottling, import, label registration and state excise licenses.
  • Announcements of spirits-brand partnerships, trademark filings or contract-manufacturing agreements.
  • First product labels, pricing, pack sizes and target states.
  • Evidence that Varun Beverages is adapting plants or adding canning lines for alcoholic RTDs.
  • Changes in state alcohol policy, excise duties, interstate movement rules or permissions for low-alcohol/RTD products.
  • Competitor responses from spirits majors, beer companies and other beverage bottlers entering canned cocktails and hard seltzers.
  • Incorporate Kiva Spirits and Company, appoint alcohol-industry leadership and secure state-specific licenses.
  • Evaluate RTD formats such as hard seltzers, spirit-and-mixer cans, flavored cocktails and premium low-alcohol offerings.
  • Pursue brand licensing, distribution or co-manufacturing partnerships with Indian and international spirits companies.
  • Pilot launches in large urban markets where premium RTD consumption and organized retail access are strongest.
  • Build a distinct adult-beverage route to market to manage excise compliance and avoid channel conflict with the core Pepsi portfolio.
  • Test adjacent capabilities including canning capacity, cold-chain distribution and on-premise activation within alcohol marketing restrictions.