Varun Beverages (VBL), leading bottler of beverage major PepsiCo, is set to expand its production capacities in the juices and value-added dairy products segments in 2024. VBL is also in the process of strengthening its distribution network and chilling infrastructure for enhanced presence in the existing and under-penetrated markets.

A crucial part of the company's expansion strategy for CY 2024 is the development of manufacturing facilities, with these segments geared to evolving consumer preferences and market trends.

The range of PepsiCo-owned products include carbonated soft drinks, carbonated juice-based beverages, juice-based beverages, energy drinks, sports drinks, and packaged drinking water. With the three decades of old association with PepsiCo, VBL is increasing the number of licensed territories and sub-territories to expand its business.

In December, the company announced the acquisition of South Africa-based Beverage Company (Bevco) along with its wholly-owned subsidiaries to help expand its geographical footprint in the African market.

Currently, VBL is collectively serves over 1.4 billion customers. Industry growth was fueled by expanding demographic profiles, coupled with an increase in disposable income, spurred higher demand.

The sector adeptly adjusted to evolving consumer preferences, and resilience was particularly evident in the energy drinks segment, which, after emerging as a growth category in 2022, continued its expansion through 2023, as per the annual report. The broader soft drinks market encompassing carbonates, juices, and bottled water, also sustained growth in 2023.