Varun Beverages enters alcohol business, taps former Diageo executive Prathmesh Mishra

Varun Beverages is moving beyond soft drinks as it prepares to enter the alcoholic beverages market, appointing former Diageo executive Prathmesh Mishra as chief executive officer and managing director of its proposed new subsidiary, KIVA Spirits and Company Ltd.

The appointment comes after Varun Beverages, PepsiCo's bottling partner in India, received approval to set up a wholly owned subsidiary focused on ready-to-drink (RTD) alcoholic beverages and allied products, according to a report by The Economic Times.

The move marks a significant expansion of the Ravi Jaipuria-owned RJ Corp group's beverages business.

Varun Beverages sets up new alcoholic beverages arm

According to a regulatory filing on Tuesday, the company's board approved the incorporation of KIVA Spirits and Company Ltd, subject to requisite approvals. The proposed subsidiary will have an authorised share capital of ₹10 crore and a paid-up equity share capital of ₹9 crore, with Varun Beverages holding the entire stake.

 RJ Corp, PepsiCo's bottling partner for three decades, had tapped former Diageo executive Prathmesh Mishra to help expand the group's beverages footprint into premium alcoholic drinks.

The development follows a change in Varun Beverages' agreement with PepsiCo. The fresh agreement removes restrictions on the lines of business that Varun Beverages can operate in, allowing the company to diversify into other drinks businesses.

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Varun Beverages shares closed at ₹438.00 per script on Tuesday on BSE, after rising 2.58%.

Who is Prathmesh Mishra?

Mishra is a consumer business leader with over 30 years of experience across global liquor companies Diageo and Pernod Ricard.

He most recently served as managing director for Diageo's Korea and Japan businesses, where he was responsible for driving growth and providing strategic leadership across the two premium Asian markets.

Before his international assignment, Mishra spent several years at Diageo India. He served as chief commercial officer for seven years, leading the company's commercial strategy and execution. He was also chief operating officer-West for three years, overseeing regional operations and business performance.

Mishra spent 14 years at Pernod Ricard India, where he held roles including vice president-North and regional leadership positions across West, Central and CSD. He also served as national controller-key accounts.

He began his career in 1993 as a management trainee at Inertia Industries and later worked with Mohan Meakins before joining Pernod Ricard in 2000.

Mishra has also served as chairman of Royal Challengers Bangalore, where he helped transform the franchise into one of India's most commercially successful sports brands.

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Varun Beverages' wider expansion plans

The company's move into alcoholic beverages comes amid a broader expansion of its beverages portfolio and international operations.

Late last year, Varun Beverages announced a distribution partnership with beer maker Carlsberg Breweries in Africa. The development was widely seen as a possible precursor to a similar tie-up in India over time.

RJ Corp is also exploring options to buy out craft beer brand Bira 91 founder Ankur Jain's 17.8% stake in the beer company following Jain's exit, an executive cited by ET had said earlier.

New joint venture in Tunisia

Separately, Varun Beverages has approved the incorporation of a joint venture in Tunisia to produce and distribute beverages, including carbonated soft drinks, juices, water and dairy products.

The proposed venture, to be named Varun Beverages Tunisia SA or another name approved by regulators, will be owned 75% by Varun Beverages and 25% by Bevanda Tunisia.

The proposed share capital of the Tunisia venture is TND 9 million, the company said.