Varun Beverages partners Asahi Group to launch Calpis in India
Varun Beverages and Asahi Group Holdings have signed a franchise deal to introduce the CALPIS brand in India, starting with Original and Mango flavors in the second half of 2026. Asahi will handle product development and marketing, while Varun Beverages manages manufacturing and distribution. The partnership targets India's growing non-alcohol beverage market, which has expanded 2.3 times in volume over the last decade.
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Varun Beverages and Asahi Group Holdings have entered a franchise agreement to introduce the CALPIS brand in India, marking Asahi's debut in the country's non-alcohol/non-carbonated beverage market. The partnership targets the growing demand for functional beverages, with a ready-to-drink, dairy-based product launching in the second half of 2026. The initial rollout will feature two flavor offerings: Original and Mango.
Under the agreement, Asahi Group Holdings will oversee product development and provide technical support, while its local subsidiary will manage marketing and brand management. Varun Beverages will be responsible for manufacturing, distribution, and sales. This division of responsibilities allows Asahi to focus on product quality and marketing while utilizing Varun Beverages' extensive production capabilities and nationwide sales network.
Strategic Partnership Details
The collaboration is expected to deliver mutual benefits by combining Asahi's global expertise with Varun Beverages' local market strength. Varun Beverages, the second largest franchisee of PepsiCo outside the United States, operates 53 production facilities. The company views the non-alcohol/non-carbonated category as a strategic area for long-term growth. The following table outlines the roles each partner will play under the franchise arrangement:
| Partner | Role in Alliance |
|---|---|
| Asahi Group Holdings | Product development, technical support |
| Asahi Local Subsidiary | Marketing, brand management |
| Varun Beverages | Manufacturing, distribution, sales |
Market Context and Growth
India's non-alcohol beverage market has expanded significantly, growing approximately 2.3 times in volume over the past decade through 2025, according to GlobalData. The market is driven by factors such as population growth, an expanding wealthy middle-class, and rising health-consciousness among consumers. With a population exceeding 1.4 billion, India presents a promising opportunity for beverage companies.
Leadership Commentary
Atsushi Katsuki, President and Group CEO at Asahi Group Holdings, expressed confidence in the partnership, highlighting India's dynamic market and Varun Beverages' strong capabilities. Varun Jaipuria, Executive Vice Chairman at Varun Beverages, emphasized the potential of the CALPIS brand and the company's commitment to building the category in India. Both executives believe the alliance will create new value and contribute to sustainable growth for both companies.
How will the introduction of CALPIS impact the competitive landscape of India's functional beverage sector?
What are the potential challenges Varun Beverages might face in scaling production for a new dairy-based category?
Could this partnership pave the way for Asahi to introduce other non-alcoholic brands into the Indian market?
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