According to PepsiCo’s largest franchise bottler- Varun Beverages Ltd (VBL)- The Indian soft drink market is expected to see significant growth as consumption is anticipated to increase steadily, which will deliver sustainable and healthy volume growth across all product categories.
This is expected as there is a significant shifting population demographics, the rising spending power of young consumers, augmented urbanization, and growing rural consumption. The company is in the process of further intensifying its capabilities to meet the higher demand expectations.
Its distribution model and on-the-ground end-to-end infrastructure facilities continue to be the key growth drivers and VBL remains committed to extending it to newer areas and underpenetrated regions to further boost its market presence.
While from an operational standpoint, VBL continues to focus on new product categories and evolving customer preferences. Launch of new products such as the energy drink ‘Sting’ performed well across various geographical regions and recent launches in the value-added dairy segment have received positive consumer response.
Overall, VBL is confident in its ability to deliver strong and sustained growth moving forward, owing to the exceptional performance during the year, normalization of the environment, and the expanded capacities to meet the high demand expectations.
VBL is PepsiCo’s second largest franchisee (outside the US), possessing rights to manufacture, distribute and sell carbonated soft drinks, fruit juice-based drinks, packaged drinking water, sports drinks, and energy drinks spanning across 6 countries. In India, VBL has a presence in 27 states and 7 Union Territories and accounts for 90 percent of PepsiCo India’s beverage sales volume in the country. VBL in the domestic market is consolidating existing distributors and increasing distribution in underpenetrated regions. It is diversifying its portfolio by periodically launching innovative products in select markets in line with changing consumer preferences, stated VBL.