Asahi Partners with Varun Beverages to Launch Calpis in India

Asahi Group, a Tokyo-listed company, is preparing to launch its Calpis dairy drinks brand in India through a new franchise agreement with PepsiCo bottler Varun Beverages. This marks Asahi's entry into the Indian non-alcoholic and non-carbonated beverage market. The company already exports alcoholic beverages, such as Asahi Super Dry lager, to India.

The launch is scheduled for the second half of the year or later, with two flavors planned: original and mango. The drinks will be sold in 180ml bottles priced at Rs20 ($0.21) each. However, Asahi has not yet finalized the distribution channels.

Under the franchise agreement, Asahi will oversee product development and provide technical assistance for producing Calpis drinks. Its local subsidiary will manage marketing and brand oversight, while Varun Beverages will handle manufacturing, distribution, and sales. Varun Beverages, established in the 1990s, is PepsiCo’s second-largest franchisee outside the US, operating 53 production facilities in India and abroad.

In May, Varun Beverages obtained a 10-year extension to its exclusive bottling and trademark license agreement with PepsiCo in India. The updated deal removed a previous restriction that prevented the company from engaging in non-PepsiCo business.

Asahi's entry into the Indian market is driven by the country's large population of over 1.4 billion, which the company describes as "an extremely promising market for non-alcohol beverages." According to GlobalData, the volume of India's non-alcoholic beverages market is projected to increase by about 2.3 times between 2015 and 2025.

Asahi has also announced a franchise agreement with Chinese company KSF Beverage Holdings for its Calpis Water brand in mainland China. However, the company has recently lowered its full-year 2025 outlook due to system disruptions from a cyberattack in Japan and other financial challenges.