PepsiCo India has expanded its partnership with its largest bottler in the country, Varun Beverages, to take on its rivals in the sports drinks and juices segments.
Varun has entered into a strategic partnership with Pepsi to sell and distribute the Tropicana range of juices as well as Gatorade and Quaker Dairy products in north and east India.
PepsiCo said the two regions together account for 80% of the juice market in India and that Varun’s reach will help it reach more customers.
The Times of India reported a PepsiCo spokesperson as saying: “The urban and rural markets are growing faster than metros for juices. In the north and east, we could only serve 90,000 outlets. The agreement with VBL (Varun) will double our distribution reach.”
Speaking of the latest agreement, Varun Beverages chairman Ravi Jaipuria said: “I am very pleased to share that Varun Beverages Limited and PepsiCo India have decided to enter into a strategic partnership for selling and distribution of the larger Tropicana portfolio that includes Tropicana Juices (100%, Delight, Essentials), along with Gatorade and Quaker Value-Added Dairy in territories across north and east India.
“With VBL already holding manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in north and east, we are confident that the addition of this portfolio will help expand the franchise for brand Tropicana in these territories.”
Varun distributes a range of products including Pepsi, 7UP and also runs franchise operations for Pizza Hut and Costa Coffee.
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