Varun Beverages extends India bottling deal with PepsiCo by 10 years

PepsiCo, Inc.

PepsiCo, Inc.

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May 21 (Reuters) - India's Varun Beverages VARB.NS said on Thursday it has extended its exclusive bottling agreement with PepsiCo PEP.O for India by 10 years.

  • Varun Beverages said the exclusive bottling appointment and trademark license agreement has been extended until April 30, 2049, from April 30, 2039.

  • The company, one of PepsiCo's largest bottling partners outside the U.S., said the earlier agreement restricted it to functioning solely as a special purpose vehicle (SPV) for PepsiCo’s business. This restriction has now been removed in the revised agreement.

  • The earlier agreement restricted Varun Beverages "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 company said.

  • It did not disclose further details on the revised agreement.

  • Last month, Varun Beverages reported a higher profit for the March quarter, supported by strong demand, with India sales volumes rising by over 14%.


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