Japan’s Asahi taps Varun Beverages to bring CALPIS to India

Japan’s Asahi Group Holdings Ltd will enter India’s non-alcoholic and non-carbonated beverage market through a franchise alliance with Varun Beverages Ltd, bringing its CALPIS dairy-based drink to one of the world’s fastest-growing consumer markets.

Asahi said it has entered into a business alliance agreement with Varun Beverages to introduce CALPIS products in India. The ready-to-drink product will be launched in the second half of 2026 or later in two flavors, Original and Mango.

The partnership marks Asahi Group’s first entry into India’s non-alcoholic and non-carbonated beverage market. CALPIS is Japan’s pioneering fermented milk-based drink and has been sold for more than a century.

Under the alliance, Asahi Group Holdings will be responsible for product development and technical support for CALPIS-branded beverages. Its local subsidiary will oversee marketing and brand management. Varun Beverages will handle manufacturing, distribution and sales.

“We are delighted to introduce the CALPIS brand, which has been enjoyed in Japan for more than a century, to consumers in India,” Atsushi Katsuki, president and group CEO at Asahi Group Holdings, said in the statement. “India is one of the world’s most dynamic and promising beverage markets, and we are pleased to partner with Varun Beverages, a leading beverage company with strong manufacturing capabilities and extensive market reach.”

Varun Jaipuria, executive vice-chairman at Varun Beverages, said the company was “honored to partner with Asahi Group” and saw “significant long-term potential” in the category. “By combining Asahi’s global expertise with Varun Beverages’ manufacturing strength and extensive distribution network, we look forward to establishing CALPIS as one of the leading brands for Indian consumers,” he said.

India’s non-alcoholic beverage market has grown sharply, helped by rising incomes, urbanization, more chilled distribution and changing consumer habits. Asahi cited GlobalData as saying the Indian non-alcohol beverage market expanded about 2.3 times in volume over the decade through 2025.

The alliance also shows how Varun Beverages is moving beyond its core PepsiCo bottling relationship.

The company is PepsiCo’s second-largest franchisee outside the US, with 53 production facilities in India and overseas.

It has a presence in 27 Indian states and six union territories, as well as markets including Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, Democratic Republic of Congo, South Africa, Lesotho, Eswatini, Namibia, Botswana, Madagascar and Mozambique.

Varun Beverages recently extended its PepsiCo bottling pact in India until 30 April 2049.