Shares of Varun Beverages Limited caught strong investor attention on 18 June after the firm told exchanges about a major business alliance with Japan’s Asahi Group Holdings. Spurred by the positive development, the stock reached an intraday high of Rs 551.70 on the NSE.

The newly signed agreement officially brings the popular CALPIS brand to Indian retail shelves. This convenient product is a unique dairy beverage crafted by fermenting skimmed milk to create a sweet and tangy taste. It is completely non-alcoholic.

Scheduled for commercial release in the latter half of 2026, the product line will initially feature original and mango flavours. 

Under the disclosed arrangement, Asahi will direct the brand marketing, technical support and product development. The domestic partner will oversee all local manufacturing, distribution and sales.

This confirmed collaboration marks a major expansion into an entirely new consumer category for the established Indian beverage giant. 

The local firm currently manages 53 active production facilities across domestic and international locations, cementing its position as PepsiCo’s second-largest operational franchisee outside the United States.

Management disclosed that India presents a massive opportunity for both companies. The non-alcoholic drink sector expanded by around 2.3 times in overall volume over the past decade. 

Rising consumer health consciousness and a growing middle class are aggressively fuelling this market demand.

Executive Vice Chairman Varun Jaipuria highlighted the strong historical trust behind the century-old Japanese brand. The historic drink sells across more than ten countries globally.

To add growth context, the company recently reported stellar financial performance for the first quarter of the calendar year 2026. 

Its net profit jumped 20% year-on-year to Rs 878 crore, which highlights its massive operational scale.

Investors initially cheered the partnership. However, the equity cooled off slightly from the earlier morning rally to sit down against the previous close by midday.

At 12:56 pm, shares of Varun Beverages is trading at Rs 538.60, down 1.01%, below it’s 52 week-high of Rs 555.80.

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