Indian people are now choosing soft drinks with less or no added sugar more than ever before. Varun Beverages Ltd. (VBL), the company that bottles PepsiCo drinks in India, shared that more than half of their sales in the first half of 2025 came from such healthier options.
More People Choosing No-Sugar Drinks
In the first six months of 2025, 55% of Varun Beverages’ total sales were from low sugar or no sugar drinks. This means out of 702 million cases sold, 386.1 million were healthier drinks like Pepsi Black, 7Up (no sugar), and Gatorade (no sugar).
In earlier years, this number was lower 44.4% in 2024 and 40.2% in 2023 showing that people are now more aware of health and sugar intake. Company chairman Ravi Jaipuria stated that the company is steadily transitioning all its products toward low or no sugar variants. He emphasized that consumers have responded positively to this shift, and as a result, the business is performing exceptionally well.
Sales Details
Varun Beverages revealed that in the first six months of 2025, 55% of its total beverage sales were from low sugar or no added sugar drinks. This means out of 702 million cases sold, 386.1 million were healthier options like Pepsi Black, sugar-free 7Up, and Gatorade with no added sugar. In comparison, such drinks made up 44.4% of total sales in 2024 and only 40.2% in 2023. This shows a steady rise in health awareness among Indian consumers. Chairman Ravi Jaipuria said that almost every beverage will eventually move to mid-calorie or no-sugar types, and consumers have accepted this change very well.
In the second quarter of 2025, the company sold 390 million cases. Carbonated soft drinks remained the highest-selling category, followed by packaged drinking water and non-carbonated beverages like juices. Despite the popularity of no-sugar drinks, total sales volume in India went down by 7.1%. However, this was balanced by strong growth outside India. Varun Beverages saw a 15.1% increase in international sales, with South Africa growing by 16.1%.
Growing in Africa
With domestic growth slowing, Varun Beverages is focusing more on international markets, especially Africa. The company has started making PepsiCo’s popular snack product Cheetos in Morocco. This marks the company’s entry into the food segment in global markets. In this quarter alone, VBL invested Rs. 4,500 million in its international operations. This includes a new soft drink bottle line in Congo, a can line in Durban (South Africa), and a snack production unit in Morocco. The company is also planning to buy more land near its South African factory in Boksburg to expand capacity and improve operations.
Varun Beverages is also increasing its presence in Zambia. It aims to grow its share in the country’s soft drink market from 90% to 95%. The company has raised its ownership in the Zambian business to 95%. Chairman Jaipuria said that stronger local currencies and better planning have helped increase profits across African regions. The company is now focusing on backward integration to reduce costs and improve efficiency.
New Plants Opened in India
While international expansion is in full swing, the company is also building its presence in India. Four new production plants have been launched in Prayagraj (Uttar Pradesh), Damtal (Himachal Pradesh), Buxar (Bihar), and Mendipathar (Meghalaya). These factories will produce carbonated drinks, juices, dairy beverages, and bottled water. A total of Rs. 14,500 million was invested in these four greenfield projects out of the company’s total capital spending of Rs. 25,000 million so far in 2025.
Apart from these, the company also expanded its existing facility in Sricity, India, with an investment of Rs. 1,200 million. Another Rs. 4,800 million was spent on items like visi-coolers, glass bottles, delivery trucks, and storage pallets.
Stock Performance Reflects Confidence
Varun Beverages’ performance has also been noticed by the stock market. On Wednesday afternoon, the company’s shares were trading at Rs. 521.55 per unit, rising by Rs. 9.35 or 1.83%. This increase shows investor trust in the company’s direction and its growing strength in both Indian and international markets.
Indian consumers are becoming more health-conscious, choosing drinks with less sugar. Varun Beverages is keeping up with this change and growing fast in India and other countries, especially in Africa. By making smart investments and offering healthier choices, the company is building a strong future.
Date : 10 August 2025
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