Varun Beverages Shares Rally 4% After This PepsiCo Contract Update

Varun Beverages Share Price: The shares of Varun Beverages surged as much as 4% to hit an intra-day high of Rs 540 apiece on Friday, May 22, after and PepsiCo Inc. and its affiliates (“PepsiCo”) have entered into a revised Exclusive bottling appointment and trademark license agreement for India with the beverage distributor.

In its exchange filing dated May 21, the largest bottling company of PepsiCo beverages outside the US noted, "The changes inter-alia include extension of the EBA for a term up to April 30, 2049, revised from earlier term up to April 30, 2039."

"The earlier EBA restricted VBL from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA," it said.

The removal of earlier restrictions on Varun Beverages is largely expected to be a positive shift, as it will allow the company to take on other new business operations and verticals, along with carrying out its existing Pepsi exclusive bottling works.

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As of 2:16 PM, the shares of Varun Beverages stood 3.29 % higher at Rs 536.95 apiece.  

About Varun Beverages

Varun Beverages is a major player in the beverage industry and one of the biggest franchisees of PepsiCo outside the USA. The company also produces and distributes a wide range of carbonated soft drinks (CSDs), and a wide array of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.

Currently, Varun Beverages has been given franchises for various PepsiCo products across 26 States and 6 union territories in India. The South Asian country is the largest market and contributed 67% of revenues from operations (net) in FY25.